KOSDAQ · 095660 · Software · ₩095660

Neowiz네오위즈

095660 · KOSDAQ · ₩095660 · 네오위즈

₩17,530▼ ₩340 (1.90%)End-of-day · Oct 27, 2026 · End-of-day prices.

Trade

Sell Buy

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

₩31,569

vs the current price (₩17,530)

Enterprise value: ₩600B
Equity value: ₩683B
WACC: 7.3%

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 is 80% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

To match today's price of ₩17,530, the model needs an operating margin of 5.3% every year (it uses 9.1%).
Or revenue growth −23.0 points a year higher than assumed in each of the 5 years.
Analysts' forecasts for 2026: revenue ₩416B, operating profit ₩32B (7.7% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩446B, operating profit ₩48B (10.8% margin) (1 broker). The model starts from the last 12 months reported.
47% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
Today's P/E is 6.0× against a typical 13.1× over the last 10 years.

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: ₩19,310; +10.2%
Base: ₩31,569; +80.1%
Bull: ₩52,833; +201.4%

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

Assumptions

Cycle options

Margin path

Every year uses the cycle-average margin (9.1%).

Revenue growth

Revenue growth, year 113.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 211%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 38.3%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 53%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (13.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin9.1%
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.
Tax rate27.5%
Share of operating profit paid as corporate tax.
Default: Korea's top corporate tax rate (25%) plus 10% local income tax.
Depreciation & amortisation1%
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).
Capital spending1.3%
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).
Working capital32.8%
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

Terminal growth2%
How fast cash flows keep growing every year after year 5.
Default: about Korea's long-run inflation plus real growth.
Risk-free rate4.03%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-27.
Beta0.6
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 -0.06, adjusted toward 1 and kept between 0.6 and 2.0.
Equity risk premium5.5%
The extra return investors want for owning shares instead of bonds.
Default: a typical premium for Korean shares.
Cost of debt (before tax)5.53%
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): ₩437B
Net debt (borrowings and leases − cash and deposits): −₩74B
+ Stakes and investments: ₩33B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩24B
Shares: 21,636,459
Share price: ₩17,530
Market cap: ₩379B

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.

	FY2023	FY2024	FY2025	Year 1	Year 2	Year 3	Year 4	Year 5
Revenue	₩366B	₩367B	₩433B	₩497B	₩552B	₩598B	₩632B	₩651B
Growth	24.1%	0.3%	18.0%	13.7%	11.0%	8.3%	5.7%	3.0%
EBIT	₩32B	₩33B	₩60B	₩45B	₩50B	₩54B	₩57B	₩59B
EBIT margin	8.6%	9.0%	13.9%	9.1%	9.1%	9.1%	9.1%	9.1%
After-tax EBIT	₩23B	₩24B	₩43B	₩33B	₩36B	₩39B	₩42B	₩43B
+ Depreciation	—	—	—	₩5B	₩5.5B	₩6B	₩6.3B	₩6.5B
− Capital spending	₩8B	₩2B	₩4.8B	₩6.5B	₩7.2B	₩7.8B	₩8.2B	₩8.5B
− Working capital	−₩20B	₩42B	₩86B	₩20B	₩18B	₩15B	₩11B	₩6.2B
Free cash flow	—	—	—	₩12B	₩17B	₩23B	₩29B	₩35B
Discount factor	—	—	—	0.932	0.868	0.809	0.753	0.702
Present value	—	—	—	₩11B	₩15B	₩18B	₩22B	₩24B

Terminal value ₩727B, worth ₩510B today: 85% 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:

	Low	Typical	High
Price / book (book value ₩25,667 a share)Now 0.68×	₩20,5250.80×	₩27,9281.09×	₩47,5591.85×
Price / earnings (last 12 months: ₩2,934 a share)Now 5.97×	₩19,6876.71×	₩38,30313.1×	₩93,89532.0×
P/E on run-rate earnings (Q2 2026 × 4: ₩3,435 a share)Now 5.10×	₩23,0446.71×	₩44,83513.1×	₩109,90632.0×

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%
6.3%	₩33,965	₩36,019	₩38,538	₩41,706	₩45,814
6.8%	₩31,133	₩32,748	₩34,690	₩37,073	₩40,068
7.3%	₩28,753	₩30,043	₩31,569	₩33,403	₩35,652
7.8%	₩26,726	₩27,770	₩28,987	₩30,425	₩32,155
8.3%	₩24,980	₩25,833	₩26,816	₩27,962	₩29,316

Now (TTM)

Market cap: ₩379B
Enterprise value: ₩303B
P/E: 6.0×
P/B: 0.7×
P/S: 0.9×
EV/EBITDA: —
Dividend yield: 1.7%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩24,300	₩18,890	₩26,650	₩36,950	₩36,100
Market cap	₩526B	₩409B	₩577B	₩799B	₩781B
P/E	10.5×	170.7×	11.8×	61.2×	13.8×
P/B	1.0×	0.8×	1.2×	1.8×	1.7×
P/S	1.2×	1.1×	1.6×	2.7×	3.0×
EV/EBITDA	—	—	—	—	—
Dividend yield	1.2%	—	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
Neowiz	6.0×	0.7×	0.9×	—	1.7%
Hyundai Autoever	46.8×	4.7×	2.0×	—	0.6%
Krafton	10.0×	1.2×	1.9×	—	1.2%
NC	6.9×	1.2×	2.0×	8.3×	0.6%
Netmarble	7.1×	0.5×	1.0×	—	2.6%
PearlAbyss	7.9×	2.0×	3.0×	5.1×	0.0%
Shift UP	9.0×	1.8×	7.1×	—	0.0%
Similar companies (median)	8.4×	1.5×	2.0×	6.7×	0.6%

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

Also known as: Neowiz / 네오위즈 / 095660 / KRX:095660

Source: KRX statistical information