KOSDAQ · 122870 · Entertainment · ₩122870

YG Entertainment와이지엔터테인먼트

122870 · KOSDAQ · ₩122870 · 와이지엔터테인먼트

₩39,250▼ ₩550 (1.38%)End-of-day · Oct 29, 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

₩88,289

vs the current price (₩39,250)

Enterprise value: ₩1.4T
Equity value: ₩1.7T
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 125% 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 ₩39,250, the model needs an operating margin of 4.9% every year (it uses 13.2%).
Or revenue growth −23.5 points a year higher than assumed in each of the 5 years.
Analysts' forecasts for 2026: revenue ₩658B, operating profit ₩75B (11.4% margin) (1 broker). The model starts from the last 12 months reported.
Analysts' forecasts for 2027: revenue ₩607B, operating profit ₩73B (12.0% margin) (1 broker). The model starts from the last 12 months reported.
Margins ranged from −5.6% to 15.3% 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.
Today's P/E is 21.7× against a typical 26.8× 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: ₩60,346; +53.7%
Base: ₩88,289; +124.9%
Bull: ₩134,676; +243.1%

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 (13.2%).

Revenue growth

Revenue growth, year 111.7%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 29.5%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 37.4%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.7% a year, annual reports), fading to 3% by year 5.
Revenue growth, year 45.2%
How much sales grow that year, compared with the year before.
Default: the last 3 years' revenue growth (11.7% 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 (11.7% a year, annual reports), fading to 3% by year 5.

Business

EBIT margin13.2%
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 & amortisation4.8%
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 spending5.9%
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).
Working capital-2.1%
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 rate4.01%
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.
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 0.14, 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)5.51%
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): ₩620B
Net debt (borrowings and leases − cash and deposits): −₩231B
+ Stakes and investments: ₩196B; Associates, long-term financial assets and deposits (book value)
− Minority interests: ₩143B
Shares: 18,691,049
Share price: ₩39,250
Market cap: ₩734B

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	₩569B	₩365B	₩545B	₩692B	₩758B	₩814B	₩856B	₩882B
Growth	45.5%	−35.9%	49.4%	11.7%	9.5%	7.4%	5.2%	3.0%
EBIT	₩87B	−₩21B	₩71B	₩91B	₩100B	₩107B	₩113B	₩116B
EBIT margin	15.3%	−5.6%	13.1%	13.2%	13.2%	13.2%	13.2%	13.2%
After-tax EBIT	₩63B	−₩15B	₩52B	₩66B	₩73B	₩78B	₩82B	₩84B
+ Depreciation	—	—	—	₩33B	₩36B	₩39B	₩41B	₩42B
− Capital spending	₩57B	₩23B	₩7.6B	₩41B	₩45B	₩48B	₩51B	₩52B
− Working capital	−₩112B	₩25B	−₩12B	−₩1.5B	−₩1.4B	−₩1.2B	−₩889M	−₩540M
Free cash flow	—	—	—	₩60B	₩66B	₩70B	₩73B	₩75B
Discount factor	—	—	—	0.932	0.868	0.809	0.754	0.703
Present value	—	—	—	₩56B	₩57B	₩57B	₩55B	₩53B

Terminal value ₩1.5T, worth ₩1.1T today: 80% 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 ₩27,852 a share)Now 1.41×	₩42,9001.54×	₩66,2732.38×	₩94,3073.39×
Price / earnings (last 12 months: ₩1,812 a share)Now 21.7×	₩23,97513.2×	₩48,55626.8×	₩115,03763.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,152 a share)Now 34.1×	₩15,24313.2×	₩30,87126.8×	₩73,13763.5×

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%	₩90,762	₩97,435	₩105,657	₩116,040	₩129,563
6.8%	₩84,085	₩89,512	₩96,068	₩104,147	₩114,348
7.3%	₩78,470	₩82,956	₩88,289	₩94,731	₩102,669
7.8%	₩73,682	₩77,443	₩81,852	₩87,092	₩93,423
8.3%	₩69,553	₩72,743	₩76,439	₩80,771	₩85,921

Now (TTM)

Market cap: ₩734B
Enterprise value: ₩497B
P/E: 21.7×
P/B: 1.4×
P/S: 1.2×
EV/EBITDA: —
Dividend yield: 0.8%

Over time (at each year end)

	2025	2024	2023	2022	2021
Price	₩69,400	₩45,800	₩50,900	₩43,850	₩55,700
Market cap	₩1.3T	₩856B	₩951B	₩820B	₩1T
P/E	35.2×	46.2×	15.5×	24.3×	156.4×
P/B	2.5×	1.8×	2.0×	2.0×	2.8×
P/S	2.4×	2.3×	1.7×	2.1×	2.9×
EV/EBITDA	—	—	—	—	—
Dividend yield	0.4%	0.5%	—	—	—

Versus similar companies

Company	P/E	P/B	P/S	EV/EBITDA	Dividend yield
YG Entertainment	21.7×	1.4×	1.2×	—	0.8%
HYBE	—	2.0×	1.9×	—	0.3%
SM Entertainment	13.7×	1.7×	1.4×	—	2.1%
JYP Entertainment	12.7×	2.1×	1.7×	7.1×	2.3%
CJ CGV	—	1.1×	0.3×	—	0.0%
Studio Dragon	21.8×	0.9×	1.2×	—	0.0%
The Pinkfong	4.2×	0.8×	1.9×	2.0×	0.0%
Similar companies (median)	13.2×	1.4×	1.5×	4.6×	0.2%

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

Also known as: YG Entertainment / 와이지엔터테인먼트 / 122870 / KRX:122870

Source: KRX statistical information