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Wemade Play

123420 · KOSDAQ · ₩123420 · 위메이드플레이

₩5,680▲ ₩70 (1.25%)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

₩13,965

vs the current price (₩5,680)

Enterprise value
₩75B
Equity value
₩145B
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 146% 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 ₩5,680, the model needs an operating margin of −0.8% every year (it uses 4.5%).
  • Margins ranged from −0.4% to 8.6% 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 5.2× against a typical 7.2× 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
₩9,581
+68.7%
Base
₩13,965
+145.9%
Bull
₩21,570
+279.8%

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 (4.5%).

Revenue growth

  • -2.2%

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

    Default: the last 3 years' revenue growth (-2.2% a year, annual reports), fading to 3% by year 5.

  • -0.9%

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

    Default: the last 3 years' revenue growth (-2.2% a year, annual reports), fading to 3% by year 5.

  • 0.4%

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

    Default: the last 3 years' revenue growth (-2.2% a year, annual reports), fading to 3% by year 5.

  • 1.7%

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

    Default: the last 3 years' revenue growth (-2.2% 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 (-2.2% a year, annual reports), fading to 3% by year 5.

Business

  • 4.5%

    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.

  • 0.8%

    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).

  • 1%

    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.

  • 4.03%

    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.

  • 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 0.3, 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.

  • 5.53%

    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)
₩128B
Net debt (borrowings and leases − cash and deposits)
−₩32B
+ Stakes and investments
₩50B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩12B
Shares
10,401,041
Share price
₩5,680
Market cap
₩59B

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₩122B₩120B₩125B₩125B₩124B₩124B₩126B₩130B
Growth−9.2%−1.0%4.0%−2.2%−0.9%0.4%1.7%3.0%
EBIT−₩436M₩1.1B₩11B₩5.6B₩5.6B₩5.6B₩5.7B₩5.9B
EBIT margin−0.4%0.9%8.6%4.5%4.5%4.5%4.5%4.5%
After-tax EBIT−₩316M₩764M₩7.8B₩4.1B₩4B₩4.1B₩4.1B₩4.3B
+ Depreciation———₩1B₩991M₩995M₩1B₩1B
− Capital spending₩1.7B₩322M₩1.7B₩1.3B₩1.2B₩1.2B₩1.3B₩1.3B
− Working capital−₩3.9B−₩92B₩98B₩281M₩113M−₩50M−₩211M−₩379M
Free cash flow———₩3.5B₩3.7B₩3.9B₩4.1B₩4.4B
Discount factor———0.9320.8680.8090.7530.702
Present value———₩3.3B₩3.2B₩3.1B₩3.1B₩3.1B

Terminal value ₩84B, worth ₩59B today: 79% 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 ₩26,429 a share)Now 0.21×₩7,0130.27×₩11,3880.43×₩39,5671.50×
Price / earnings (last 12 months: ₩1,086 a share)Now 5.23×₩2,4122.22×₩7,7687.15×₩28,03525.8×
P/E on run-rate earnings (Q2 2026 × 4: ₩1,233 a share)Now 4.61×₩2,7382.22×₩8,8187.15×₩31,82425.8×

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%₩14,047₩14,768₩15,656₩16,778₩18,237
6.8%₩13,413₩14,006₩14,723₩15,606₩16,721
7.3%₩12,879₩13,375₩13,965₩14,677₩15,556
7.8%₩12,423₩12,843₩13,337₩13,923₩14,632
8.3%₩12,030₩12,390₩12,808₩13,298₩13,881

Now (TTM)

Market cap
₩59B
Enterprise value
₩5.3B
P/E
5.2×
P/B
0.2×
P/S
0.5×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩7,580₩6,910₩12,410₩12,400₩34,350
Market cap₩79B₩72B₩129B₩129B₩357B
P/E4.2×3.1×29.9×—25.1×
P/B0.3×0.3×0.6×0.6×2.3×
P/S0.6×0.6×1.1×1.0×3.4×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Wemade Play5.2×0.2×0.5×—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 Play / 위메이드플레이 / 123420 / KRX:123420

Source: KRX statistical information