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Next Entertainment World

160550 · KOSDAQ · ₩160550 · NEW

₩1,014▼ ₩8 (0.78%)End-of-day · Oct 29, 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
−₩49B
Equity value
−₩91B
WACC
5.6%

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 ₩1,014, the model needs an operating margin of 3.8% every year (it uses −1.1%).
  • Margins ranged from −16.7% to 4.6% 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.
  • 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
—

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 (−1.1%).

Revenue growth

  • -2.9%

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

    Default: the last 3 years' revenue growth (-2.9% a year, annual reports), fading to 3% by year 5.

  • -1.4%

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

    Default: the last 3 years' revenue growth (-2.9% a year, annual reports), fading to 3% by year 5.

  • 0.1%

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

    Default: the last 3 years' revenue growth (-2.9% a year, annual reports), fading to 3% by year 5.

  • 1.5%

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

    Default: the last 3 years' revenue growth (-2.9% 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 (-2.9% a year, annual reports), fading to 3% by year 5.

Business

  • -1.1%

    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.

  • 27.5%

    Share of operating profit paid as corporate tax.

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

  • 0.2%

    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).

  • 0.3%

    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).

  • 37.5%

    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 0.02, 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)
₩133B
Net debt (borrowings and leases − cash and deposits)
₩29B
+ Stakes and investments
₩16B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩29B
Shares
27,906,106
Share price
₩1,014
Market cap
₩28B

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₩129B₩113B₩143B₩129B₩127B₩127B₩129B₩133B
Growth−17.0%−12.3%26.0%−2.9%−1.4%0.1%1.5%3.0%
EBIT−₩5.6B−₩19B₩2.7B−₩1.4B−₩1.4B−₩1.4B−₩1.4B−₩1.5B
EBIT margin−4.3%−16.7%1.9%−1.1%−1.1%−1.1%−1.1%−1.1%
After-tax EBIT−₩4B−₩14B₩1.9B−₩1B−₩1B−₩1B−₩1B−₩1.1B
+ Depreciation———₩257M₩254M₩254M₩258M₩266M
− Capital spending₩424M₩279M₩375M₩386M₩381M₩381M₩387M₩398M
− Working capital−₩7.4B₩988M−₩36B−₩1.4B−₩675M₩48M₩714M₩1.5B
Free cash flow———₩286M−₩463M−₩1.2B−₩1.9B−₩2.6B
Discount factor———0.9470.8960.8480.8030.760
Present value———₩271M−₩415M−₩1B−₩1.5B−₩2B

Terminal value −₩58B, worth −₩44B today: 90% 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 ₩3,161 a share)Now 0.32×₩1,6750.53×₩2,5840.82×₩6,9152.19×

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%
4.6%—————
5.1%—————
5.6%—————
6.1%—————
6.6%—————

Now (TTM)

Market cap
₩28B
Enterprise value
₩53B
P/E
—
P/B
0.3×
P/S
0.2×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩2,235₩2,140₩4,585₩8,150₩14,350
Market cap₩62B₩60B₩128B₩227B₩400B
P/E79.5×————
P/B0.7×0.7×1.2×1.9×3.1×
P/S0.4×0.5×1.0×1.5×2.7×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Next Entertainment World—0.3×0.2×—0.0%
HYBE—2.0×1.9×—0.3%
SM Entertainment13.7×1.7×1.4×—2.1%
JYP Entertainment12.7×2.1×1.7×7.1×2.3%
CJ CGV—1.1×0.3×—0.0%
YG Entertainment21.7×1.4×1.2×—0.8%
Studio Dragon21.8×0.9×1.2×—0.0%
Similar companies (median)17.7×1.6×1.3×7.1×0.5%

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

Also known as: Next Entertainment World / NEW / 160550 / KRX:160550

Source: KRX statistical information