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PearlAbyss

263750 · KOSDAQ · ₩263750 · 펄어비스

₩35,000▲ ₩500 (1.45%)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

₩14,159

vs the current price (₩35,000)

Enterprise value
₩227B
Equity value
₩890B
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 60% 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 ₩35,000, the model needs an operating margin of 15.7% every year (it uses 1.8%).
  • Or revenue growth +48.2 points a year higher than assumed in each of the 5 years.
  • Margins ranged from −4.9% to 10.6% 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 8.1× against a typical 42.9× 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
₩11,095
−68.3%
Base
₩14,159
−59.5%
Bull
₩19,609
−44.0%

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 (1.8%).

Revenue growth

  • -1.8%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • -0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 0.6%

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

    Default: the last 3 years' revenue growth (-1.8% a year, annual reports), fading to 3% by year 5.

  • 1.8%

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

    Default: the last 3 years' revenue growth (-1.8% 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 (-1.8% a year, annual reports), fading to 3% by year 5.

Business

  • 1.8%

    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.

  • 4.5%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 1.7%

    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: 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.

  • 5.51%

    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)
₩723B
Net debt (borrowings and leases − cash and deposits)
−₩623B
+ Stakes and investments
₩40B
Associates, long-term financial assets and deposits (book value)
Shares
62,843,910
Share price
₩35,000
Market cap
₩2.2T

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₩333B₩342B₩366B₩710B₩706B₩710B₩723B₩745B
Growth−13.5%2.7%6.8%−1.8%−0.6%0.6%1.8%3.0%
EBIT−₩16B−₩12B−₩15B₩13B₩13B₩13B₩13B₩13B
EBIT margin−4.9%−3.6%−4.1%1.8%1.8%1.8%1.8%1.8%
After-tax EBIT−₩12B−₩8.9B−₩11B₩9.3B₩9.2B₩9.3B₩9.4B₩9.7B
+ Depreciation₩17B₩16B₩15B₩32B₩32B₩32B₩33B₩34B
− Capital spending₩9.3B₩3.6B₩4.5B₩12B₩12B₩12B₩12B₩13B
− Working capital−₩253B₩43B₩444M₩1.3B₩426M−₩424M−₩1.3B−₩2.2B
Free cash flow₩249B−₩40B−₩1.1B₩28B₩29B₩30B₩31B₩33B
Discount factor———0.9320.8680.8090.7540.703
Present value———₩26B₩25B₩24B₩23B₩23B

Terminal value ₩151B, worth ₩106B today: 47% 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 ₩16,645 a share)Now 2.10×₩39,3742.37×₩55,5293.34×₩99,2235.96×
Price / earnings (last 12 months: ₩4,317 a share)Now 8.11×₩35,0008.11×₩184,99442.9×₩324,86675.3×
P/E on run-rate earnings (Q2 2026 × 4: ₩6,336 a share)Now 5.52×₩51,3688.11×₩271,50742.9×₩476,78975.3×

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%₩14,110₩14,376₩14,705₩15,121₩15,664
6.8%₩13,913₩14,136₩14,405₩14,739₩15,161
7.3%₩13,744₩13,933₩14,159₩14,433₩14,771
7.8%₩13,597₩13,760₩13,952₩14,181₩14,458
8.3%₩13,468₩13,610₩13,775₩13,969₩14,201

Now (TTM)

Market cap
₩2.2T
Enterprise value
₩1.6T
P/E
8.1×
P/B
2.1×
P/S
3.0×
EV/EBITDA
5.3×
Dividend yield
0.0%

Over time (at each year end)

20252024202320222021
Price₩37,400₩27,700₩38,750₩41,950₩138,300
Market cap₩2.4T₩1.7T₩2.4T₩2.6T₩8.7T
P/E—28.8×160.1×—146.4×
P/B2.9×2.2×3.4×3.8×12.1×
P/S6.4×5.1×7.3×6.8×21.5×
EV/EBITDA—411.1×4,669.2×83.3×150.8×
Dividend yield0.0%————

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
PearlAbyss8.1×2.1×3.0×5.3×0.0%
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%
Shift UP9.0×1.8×7.1×—0.0%
NHN21.4×1.0×0.5×3.4×0.0%
Similar companies (median)9.5×1.2×1.8×5.9×0.6%

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

Also known as: PearlAbyss / 펄어비스 / 263750 / KRX:263750

Source: KRX statistical information