Ask Warren

Cube Entertainment

182360 · KOSDAQ · ₩182360 · 큐브엔터

₩6,260▲ ₩90 (1.46%)End-of-day · Oct 27, 2026 · End-of-day prices.
Trade
Alert me
SellBuy

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

₩2,029

vs the current price (₩6,260)

Enterprise value
₩3.4B
Equity value
₩32B
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 68% 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 ₩6,260, the model needs an operating margin of 24.4% every year (it uses 1.7%).
  • Margins ranged from −8.3% to 10.8% 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.
  • The group includes a financial business (an insurer, bank or broker), whose investments and minority shareholders are left out here. A sum-of-the-parts view usually fits groups like this better.

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
₩1,668
−73.4%
Base
₩2,029
−67.6%
Bull
₩2,689
−57.0%

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 (1.7%).

Revenue growth

  • -10%

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

    Default: the last 3 years' revenue growth (-10.2% a year, annual reports), fading to 3% by year 5.

  • -6.7%

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

    Default: the last 3 years' revenue growth (-10.2% a year, annual reports), fading to 3% by year 5.

  • -3.5%

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

    Default: the last 3 years' revenue growth (-10.2% a year, annual reports), fading to 3% by year 5.

  • -0.2%

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

    Default: the last 3 years' revenue growth (-10.2% 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 (-10.2% a year, annual reports), fading to 3% by year 5.

Business

  • 1.7%

    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.

  • 3.3%

    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).

  • 4.1%

    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 0.08, 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)
₩27B
Net debt (borrowings and leases − cash and deposits)
−₩28B
Shares
15,544,586
Share price
₩6,260
Market cap
₩97B

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₩142B₩218B₩87B₩25B₩23B₩22B₩22B₩23B
Growth17.9%53.4%−60.0%−10.0%−6.7%−3.5%−0.2%3.0%
EBIT₩15B₩17B−₩7.3B₩419M₩391M₩377M₩376M₩387M
EBIT margin10.8%7.6%−8.3%1.7%1.7%1.7%1.7%1.7%
After-tax EBIT₩11B₩12B−₩5.3B₩304M₩283M₩273M₩273M₩281M
+ Depreciation———₩813M₩758M₩732M₩730M₩752M
− Capital spending₩5.4B₩17B₩531M₩1B₩942M₩909M₩907M₩934M
− Working capital−₩7.7B₩14B−₩37B₩274M₩165M₩80M₩4.4M−₩66M
Free cash flow———−₩167M−₩66M₩15M₩91M₩165M
Discount factor———0.9320.8680.8090.7530.702
Present value———−₩156M−₩57M₩13M₩69M₩116M

Terminal value ₩4.8B, worth ₩3.4B today: 100% 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 ₩10,343 a share)Now 0.61×₩10,2810.99×₩26,9722.61×₩91,7198.87×

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%₩2,018₩2,051₩2,093₩2,145₩2,214
6.8%₩1,995₩2,024₩2,058₩2,100₩2,153
7.3%₩1,977₩2,001₩2,029₩2,064₩2,107
7.8%₩1,961₩1,982₩2,006₩2,035₩2,070
8.3%₩1,948₩1,966₩1,987₩2,011₩2,040

Now (TTM)

Market cap
₩97B
Enterprise value
₩69B
P/E
—
P/B
0.6×
P/S
3.6×
EV/EBITDA
—
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩13,750₩15,500₩19,060₩16,200₩25,150
Market cap₩214B₩241B₩296B₩252B₩391B
P/E—15.1×27.1×41.2×—
P/B1.3×1.5×3.8×6.6×10.9×
P/S2.5×1.1×2.1×2.1×5.4×
EV/EBITDA—————
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
Cube Entertainment—0.6×3.6×—0.0%
HYBE—2.1×2.0×—0.3%
SM Entertainment13.8×1.8×1.4×—2.0%
JYP Entertainment12.6×2.1×1.6×7.0×2.3%
CJ CGV—1.1×0.3×—0.0%
YG Entertainment21.9×1.4×1.2×—0.8%
Studio Dragon21.7×0.9×1.2×—0.0%
Similar companies (median)17.8×1.6×1.3×7.0×0.5%

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

Also known as: Cube Entertainment / 큐브엔터 / 182360 / KRX:182360

Source: KRX statistical information