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FNC Entertainment

173940 · KOSDAQ · ₩173940 · 에프엔씨엔터

₩2,000 ₩0 (0.00%)End-of-day · Oct 30, 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
−₩113B
Equity value
−₩77B
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 gives no positive value at these assumptions. What we can see:

  • To match today's price of ₩2,000, the model needs an operating margin of 0.1% every year (it uses −4.8%).
  • Margins ranged from −20.0% to −0.6% 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 (−4.8%).

Revenue growth

  • 15.9%

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

    Default: the last 3 years' revenue growth (15.9% a year, annual reports), fading to 3% by year 5.

  • 12.7%

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

    Default: the last 3 years' revenue growth (15.9% a year, annual reports), fading to 3% by year 5.

  • 9.4%

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

    Default: the last 3 years' revenue growth (15.9% a year, annual reports), fading to 3% by year 5.

  • 6.2%

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

    Default: the last 3 years' revenue growth (15.9% 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 (15.9% a year, annual reports), fading to 3% by year 5.

Business

  • -4.8%

    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.

  • 4.3%

    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).

  • 5.4%

    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.

  • 4.01%

    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: 104 weeks of weekly returns against KOSPI (official index); raw beta 0.13, 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)
₩114B
Net debt (borrowings and leases − cash and deposits)
−₩16B
+ Stakes and investments
₩19B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩69M
Shares
15,392,808
Share price
₩2,000
Market cap
₩31B

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₩92B₩86B₩102B₩132B₩149B₩163B₩173B₩178B
Growth40.1%−6.4%18.7%15.9%12.7%9.4%6.2%3.0%
EBIT−₩7.6B−₩4.2B−₩614M−₩6.3B−₩7.1B−₩7.8B−₩8.3B−₩8.5B
EBIT margin−8.2%−4.8%−0.6%−4.8%−4.8%−4.8%−4.8%−4.8%
After-tax EBIT−₩5.5B−₩3B−₩445M−₩4.6B−₩5.2B−₩5.7B−₩6B−₩6.2B
+ Depreciation———₩5.7B₩6.4B₩7B₩7.4B₩7.6B
− Capital spending₩2.9B₩1.3B₩12B₩7.1B₩8B₩8.8B₩9.3B₩9.6B
− Working capital₩11B−₩6.2B−₩34B−₩1.8B−₩1.7B−₩1.4B−₩1B−₩518M
Free cash flow———−₩4.2B−₩5.1B−₩6B−₩6.9B−₩7.6B
Discount factor———0.9320.8680.8090.7540.703
Present value———−₩3.9B−₩4.5B−₩4.9B−₩5.2B−₩5.4B

Terminal value −₩127B, worth −₩89B 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 ₩1,194 a share)Now 1.67×₩1,7081.43×₩2,2031.84×₩2,9672.48×

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%—————
6.8%—————
7.3%—————
7.8%—————
8.3%—————

Now (TTM)

Market cap
₩31B
Enterprise value
₩8.6B
P/E
—
P/B
1.7×
P/S
0.3×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩4,125₩2,775₩5,020₩5,400₩8,150
Market cap₩63B₩43B₩77B₩83B₩125B
P/E—————
P/B3.3×1.4×2.2×1.9×2.2×
P/S0.6×0.5×0.8×1.3×1.7×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
FNC Entertainment—1.7×0.3×—0.0%
HYBE—2.0×1.9×—0.3%
SM Entertainment13.3×1.7×1.4×—2.1%
JYP Entertainment12.9×2.2×1.7×7.2×2.2%
CJ CGV—1.1×0.4×—0.0%
YG Entertainment20.9×1.4×1.1×—0.8%
Studio Dragon21.8×0.9×1.2×—0.0%
Similar companies (median)17.1×1.5×1.3×7.2×0.6%

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

Also known as: FNC Entertainment / 에프엔씨엔터 / 173940 / KRX:173940

Source: KRX statistical information