SM Entertainment에스엠

SM Entertainment's trailing earnings are recovering strongly from 2024, but the share price is still down over the past year.

Trailing twelve-month revenue is about ₩1.27T with an operating margin of 15.3% as of H1 2026, well up from 8.8% in 2024. The shares trade at ₩79,500, roughly 34% lower over one year and near the lower half of their 52-week range of ₩63,900 to ₩140,400. The company holds about ₩371B in cash against ₩6.3B in borrowings.

What stands out

• Full-year 2025 revenue rose 18.7% to about ₩1.17T, but net income of ₩347B was well above operating income of ₩183B, so the bottom line was likely lifted by items outside core operations; the data does not explain the difference.
• Trailing P/E is 13.8 and P/B is 1.8, below the peer P/E values of 12.6 to 21.9 shown for JYP, YG and Studio Dragon.
• The in-house DCF model gives a base value of ₩116,247 with a bear case of ₩72,744 and a bull case of ₩188,579; these are model outputs, not forecasts or targets.
• Foreign ownership fell from 32.4% to 30% over about 60 days, and 20-day flows were net selling across foreign, institutional and retail investors.
• Recent news includes brokerage commentary citing a 3Q operating profit of ₩35.7B and expectations for a 2027 earnings rebound, along with planned new boy group debut and tour expansion.

What to watch

• Full 3Q 2026 results and the 2027 earnings outlook, since the data only gives a preliminary 3Q operating profit figure reported in news.
• Continued foreign selling, which has reduced foreign ownership in recent weeks.
• Whether the tour expansion and new artist debut named in the news translate into revenue, as the filings provided do not quantify them.