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Wemade

112040 · KOSDAQ · ₩112040 · 위메이드

₩13,700▲ ₩220 (1.63%)End-of-day · Oct 27, 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
−₩217B
Equity value
−₩80B
WACC
7.4%

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 ₩13,700, the model needs an operating margin of 3.0% every year (it uses −2.3%).
  • Margins ranged from −18.3% to 29.1% 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.
  • 57% 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.
  • In the projection, spending on equipment, software and working capital takes most or all of the after-tax operating profit, so free cash flow is thin. Companies that invest heavily often look like this until spending slows.

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
₩3,766
−72.5%

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 (−2.3%).

Revenue growth

  • 9.8%

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

    Default: the last 3 years' revenue growth (9.8% a year, annual reports), fading to 3% by year 5.

  • 8.1%

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

    Default: the last 3 years' revenue growth (9.8% a year, annual reports), fading to 3% by year 5.

  • 6.4%

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

    Default: the last 3 years' revenue growth (9.8% a year, annual reports), fading to 3% by year 5.

  • 4.7%

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

    Default: the last 3 years' revenue growth (9.8% 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 (9.8% a year, annual reports), fading to 3% by year 5.

Business

  • -2.3%

    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.

  • 1.1%

    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).

  • 1.4%

    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.

  • 4.11%

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

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 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 0.36, 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.

  • 5.61%

    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)
₩617B
Net debt (borrowings and leases − cash and deposits)
−₩151B
+ Stakes and investments
₩387B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩401B
Shares
33,948,483
Share price
₩13,700
Market cap
₩465B

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₩605B₩712B₩614B₩677B₩732B₩779B₩816B₩840B
Growth30.6%17.6%−13.7%9.8%8.1%6.4%4.7%3.0%
EBIT−₩110B₩7.1B₩11B−₩16B−₩17B−₩18B−₩19B−₩19B
EBIT margin−18.2%1.0%1.7%−2.3%−2.3%−2.3%−2.3%−2.3%
After-tax EBIT−₩80B₩5.1B₩7.7B−₩11B−₩12B−₩13B−₩14B−₩14B
+ Depreciation———₩7.5B₩8.1B₩8.6B₩9B₩9.2B
− Capital spending₩12B₩5.5B₩8.9B₩9.5B₩10B₩11B₩11B₩12B
− Working capital−₩199B₩237B₩16B−₩6B−₩5.5B−₩4.7B−₩3.7B−₩2.4B
Free cash flow———−₩7.3B−₩8.9B−₩11B−₩12B−₩14B
Discount factor———0.9310.8670.8070.7510.700
Present value———−₩6.8B−₩7.7B−₩8.6B−₩9.3B−₩9.9B

Terminal value −₩250B, worth −₩175B today: 81% 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 ₩11,643 a share)Now 1.18×₩20,0661.72×₩35,9593.09×₩84,7237.28×

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%
6.4%—————
6.9%—————
7.4%—————
7.9%—————
8.4%—————

Now (TTM)

Market cap
₩465B
Enterprise value
₩297B
P/E
7.2×
P/B
1.2×
P/S
0.8×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩24,950₩35,150₩60,900₩31,550₩177,900
Market cap₩847B₩1.2T₩2.1T₩1.1T₩6T
P/E—6.3×320,288,553.8×165,929,456.0×935,621,243.3×
P/B2.1×2.8×5.2×2.0×9.4×
P/S1.4×1.7×3.4×2.3×18.0×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Wemade7.2×1.2×0.8×—0.0%
Hyundai Autoever46.8×4.7×2.0×—0.6%
Krafton10.0×1.2×1.9×—1.2%
NC6.9×1.2×2.0×8.3×0.6%
Netmarble7.1×0.5×1.0×—2.6%
PearlAbyss7.9×2.0×3.0×5.1×0.0%
Shift UP9.0×1.8×7.1×—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: Wemade / 위메이드 / 112040 / KRX:112040

Source: KRX statistical information