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T3 Entertainment

204610 · KOSDAQ · ₩204610 · 티쓰리

₩2,760 ₩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

₩3,956

vs the current price (₩2,760)

Enterprise value
₩186B
Equity value
₩221B
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 43% 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 ₩2,760, the model needs an operating margin of 12.6% every year (it uses 19.1%).
  • Or revenue growth −11.5 points a year higher than assumed in each of the 5 years.
  • Margins ranged from 14.8% to 24.5% over the last 4 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 9.0× against a typical 8.6× 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
₩2,866
+3.9%
Base
₩3,956
+43.3%
Bull
₩5,772
+109.1%

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 (19.1%).

Revenue growth

  • -3%

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

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

  • -0%

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

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

Business

  • 19.1%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 4 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.

  • 1.8%

    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).

  • 2.2%

    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).

  • 35.6%

    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 -0.01, 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)
₩82B
Net debt (borrowings and leases − cash and deposits)
−₩47B
+ Stakes and investments
₩8.9B
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩21B
Shares
55,851,220
Share price
₩2,760
Market cap
₩154B

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₩51B₩59B₩70B₩79B₩78B₩78B₩79B₩82B
Growth−33.1%16.4%17.2%−3.0%−1.5%0.0%1.5%3.0%
EBIT₩7.6B₩11B₩17B₩15B₩15B₩15B₩15B₩16B
EBIT margin14.8%17.7%24.5%19.1%19.1%19.1%19.1%19.1%
After-tax EBIT₩5.5B₩7.6B₩12B₩11B₩11B₩11B₩11B₩11B
+ Depreciation———₩1.4B₩1.4B₩1.4B₩1.4B₩1.5B
− Capital spending₩2.8B₩425M₩305M₩1.7B₩1.7B₩1.7B₩1.7B₩1.8B
− Working capital−₩47B₩2.8B₩13B−₩872M−₩423M₩0₩417M₩846M
Free cash flow———₩12B₩11B₩10B₩10B₩10B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩11B₩9.5B₩8.5B₩7.7B₩7.1B

Terminal value ₩203B, worth ₩143B today: 77% 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 ₩1,664 a share)Now 1.66×₩1,1720.70×₩1,6651.00×₩2,7281.64×
Price / earnings (last 12 months: ₩308 a share)Now 8.97×₩2,0316.60×₩2,6568.63×₩4,16013.5×
P/E on run-rate earnings (Q2 2026 × 4: ₩317 a share)Now 8.72×₩2,0906.60×₩2,7338.63×₩4,28113.5×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2023, 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%₩4,146₩4,403₩4,721₩5,121₩5,641
6.8%₩3,843₩4,049₩4,298₩4,605₩4,992
7.3%₩3,588₩3,756₩3,956₩4,196₩4,493
7.8%₩3,371₩3,509₩3,672₩3,865₩4,097
8.3%₩3,183₩3,299₩3,433₩3,590₩3,776

Now (TTM)

Market cap
₩154B
Enterprise value
₩107B
P/E
9.0×
P/B
1.7×
P/S
1.9×
EV/EBITDA
—
Dividend yield
5.1%

Over time (at each year end)

2025202420232022
Price₩1,850₩1,554₩1,230₩1,750
Market cap₩103B₩87B₩69B₩98B
P/E6.1×7.6×12.3×8.8×
P/B1.1×0.9×0.7×1.0×
P/S1.5×1.5×1.3×1.3×
EV/EBITDA————
Dividend yield7.6%3.9%——

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
T3 Entertainment9.0×1.7×1.9×—5.1%
Krafton10.0×1.2×1.9×—1.2%
Hyundai Autoever41.5×4.2×1.7×—0.7%
NC7.0×1.2×2.1×8.5×0.6%
Netmarble7.1×0.5×1.0×—2.6%
PearlAbyss8.1×2.1×3.0×5.3×0.0%
Shift UP9.0×1.8×7.1×—0.0%
Similar companies (median)8.5×1.5×2.0×6.9×0.6%

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

Also known as: T3 Entertainment / 티쓰리 / 204610 / KRX:204610

Source: KRX statistical information