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CJ CGV

079160 · KOSPI · ₩079160 · CJ CGV

₩5,120▲ ₩30 (0.59%)End-of-day · Oct 30, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

With these assumptions the model gives no positive value.

Enterprise value
₩921B
Equity value
−₩467B
WACC
5.3%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩5,120, the model needs an operating margin of 2.8% every year (it uses 1.3%).
  • Or revenue growth +18.8 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −32.8% to 4.2% over the last 5 years, so this is a cyclical business. The model uses the average; the price may be set by where the cycle is now. Try the margin fade option.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
—
Base
—
Bull
₩17,890
+249.4%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (1.3%).

Revenue growth

  • 21.1%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.

  • 16.6%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.

  • 12%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.

  • 7.5%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (21.1% a year, annual reports), fading to 3% by year 5.

Business

  • 1.3%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 3.9%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).

  • 4.9%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • -10%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.01%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-30.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.13, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.51%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩2.4T
Net debt (borrowings and leases − cash and deposits)
₩1.4T
+ Stakes and investments
₩32B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩58B
Shares
165,582,797
Share price
₩5,120
Market cap
₩848B

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩1.5T₩2T₩2.3T₩2.9T₩3.4T₩3.8T₩4.1T₩4.2T
Growth20.6%26.7%16.2%21.1%16.6%12.0%7.5%3.0%
EBIT₩49B₩76B₩96B₩38B₩44B₩50B₩53B₩55B
EBIT margin3.2%3.9%4.2%1.3%1.3%1.3%1.3%1.3%
After-tax EBIT₩36B₩55B₩70B₩28B₩32B₩36B₩39B₩40B
+ Depreciation———₩114B₩133B₩149B₩160B₩165B
− Capital spending₩101B₩71B₩103B₩143B₩167B₩187B₩201B₩207B
− Working capital−₩141B−₩500B−₩65B−₩51B−₩49B−₩41B−₩29B−₩12B
Free cash flow———₩49B₩47B₩39B₩26B₩9.9B
Discount factor———0.9500.9020.8570.8140.774
Present value———₩47B₩42B₩33B₩21B₩7.7B

Terminal value ₩995B, worth ₩770B today: 84% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩4,577 a share)Now 1.12×₩4,8481.06×₩8,1131.77×₩104,08822.7×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
4.3%———₩2,217₩6,944
4.8%————₩2,615
5.3%————₩197
5.8%—————
6.3%—————

Now (TTM)

Market cap
₩848B
Enterprise value
₩782B
P/E
—
P/B
1.1×
P/S
0.4×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩5,950₩5,290₩5,780₩11,843₩17,502
Market cap₩985B₩876B₩957B₩2T₩2.9T
P/E—————
P/B1.7×1.3×2.3×5.2×12.9×
P/S0.4×0.4×0.6×1.5×3.9×
EV/EBITDA———40.6×—
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
CJ CGV—1.1×0.4×—0.0%
HYBE—2.0×1.9×—0.3%
SM Entertainment13.3×1.7×1.4×—2.1%
JYP Entertainment12.9×2.2×1.7×7.2×2.2%
YG Entertainment20.9×1.4×1.1×—0.8%
Studio Dragon21.8×0.9×1.2×—0.0%
The Pinkfong4.2×0.8×1.9×1.9×0.0%
Similar companies (median)13.3×1.5×1.5×4.6×0.6%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: CJ CGV / 079160 / KRX:079160

Source: KRX statistical information