The Pinkfong더핑크퐁컴퍼니
403850 · KOSDAQ · ₩403850 · 더핑크퐁컴퍼니
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
₩21,556
vs the current price (₩11,740)
- Enterprise value
- ₩153B
- Equity value
- ₩309B
- WACC
- 7.4%
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 84% 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 ₩11,740, the model needs an operating margin of 1.8% every year (it uses 13.5%).
- Margins ranged from −3.4% to 20.6% over the last 3 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.
- 72% of the last 12 months' net profit came from outside operations (stakes in other companies, interest, one-offs). The model adds those stakes at book value but doesn't project that income.
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
- ₩17,610
- +50.0%
- Base
- ₩21,556
- +83.6%
- Bull
- ₩28,128
- +139.6%
Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.
Assumptions
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Cycle options
Margin path
Every year uses the cycle-average margin (13.5%).
Revenue growth
- -0.4%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
- 0.4%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
- 1.3%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
- 2.1%
How much sales grow that year, compared with the year before.
Default: the last 2 years' revenue growth (-0.4% 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 2 years' revenue growth (-0.4% a year, annual reports), fading to 3% by year 5.
Business
- 13.5%
Operating profit as a share of revenue.
Default: through-the-cycle average of the last 12 months and the last 3 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.
- 2.9%
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).
- 3.4%
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).
- 11.3%
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.
- 4.11%
Yield on Korea's 10-year government bond: the return with almost no risk.
Default: Korea Treasury Bond 10-year yield on 2026-10-28.
- 0.6
How much the share moves when the market moves: 1 means just like the market.
Default: 49 weeks of weekly returns against KOSPI (official index); raw beta 0.03, 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.
- 5.61%
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)
- ₩91B
- Net debt (borrowings and leases − cash and deposits)
- −₩137B
- + Stakes and investments
- ₩20B
- Associates, long-term financial assets and deposits (book value)
- − Minority interests
- ₩102M
- Shares
- 14,351,010
- Share price
- ₩11,740
- Market cap
- ₩168B
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.
| FY2023 | FY2024 | FY2025 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | ₩95B | ₩97B | ₩94B | ₩91B | ₩91B | ₩92B | ₩94B | ₩97B |
| Growth | — | 2.9% | −3.6% | −0.4% | 0.4% | 1.3% | 2.1% | 3.0% |
| EBIT | −₩3.2B | ₩19B | ₩19B | ₩12B | ₩12B | ₩12B | ₩13B | ₩13B |
| EBIT margin | −3.4% | 19.3% | 20.6% | 13.5% | 13.5% | 13.5% | 13.5% | 13.5% |
| After-tax EBIT | −₩2.3B | ₩14B | ₩14B | ₩8.9B | ₩8.9B | ₩9B | ₩9.2B | ₩9.5B |
| + Depreciation | ₩3B | ₩2.8B | ₩2.4B | ₩2.6B | ₩2.6B | ₩2.7B | ₩2.7B | ₩2.8B |
| − Capital spending | ₩5.6B | ₩1.4B | ₩2.7B | ₩3.1B | ₩3.1B | ₩3.1B | ₩3.2B | ₩3.3B |
| − Working capital | — | −₩8.6B | ₩3.7B | −₩41M | ₩41M | ₩134M | ₩219M | ₩319M |
| Free cash flow | −₩4.9B | ₩24B | ₩10B | ₩8.5B | ₩8.4B | ₩8.4B | ₩8.5B | ₩8.7B |
| Discount factor | — | — | — | 0.931 | 0.867 | 0.807 | 0.751 | 0.700 |
| Present value | — | — | — | ₩7.9B | ₩7.3B | ₩6.8B | ₩6.4B | ₩6.1B |
Terminal value ₩170B, worth ₩119B today: 77% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.
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% |
|---|---|---|---|---|---|
| 6.4% | ₩22,037 | ₩22,911 | ₩23,982 | ₩25,327 | ₩27,066 |
| 6.9% | ₩21,085 | ₩21,793 | ₩22,645 | ₩23,690 | ₩25,002 |
| 7.4% | ₩20,282 | ₩20,865 | ₩21,556 | ₩22,387 | ₩23,406 |
| 7.9% | ₩19,595 | ₩20,082 | ₩20,651 | ₩21,324 | ₩22,135 |
| 8.4% | ₩19,001 | ₩19,412 | ₩19,887 | ₩20,442 | ₩21,099 |
Now (TTM)
- Market cap
- ₩168B
- Enterprise value
- ₩29B
- P/E
- 4.0×
- P/B
- 0.8×
- P/S
- 1.9×
- EV/EBITDA
- 1.6×
- Dividend yield
- 0.0%
Over time (at each year end)
| 2025 | |
|---|---|
| Price | ₩25,050 |
| Market cap | ₩359B |
| P/E | 19.8× |
| P/B | 2.0× |
| P/S | 3.8× |
| EV/EBITDA | 9.7× |
| Dividend yield | 0.0% |
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Versus similar companies
| Company | P/E | P/B | P/S | EV/EBITDA | Dividend yield |
|---|---|---|---|---|---|
| The Pinkfong | 4.0× | 0.8× | 1.9× | 1.6× | 0.0% |
| HYBE | — | 2.1× | 2.0× | — | 0.3% |
| SM Entertainment | 13.8× | 1.8× | 1.4× | — | 2.0% |
| JYP Entertainment | 12.6× | 2.1× | 1.6× | 7.0× | 2.3% |
| CJ CGV | — | 1.1× | 0.3× | — | 0.0% |
| YG Entertainment | 21.9× | 1.4× | 1.2× | — | 0.8% |
| Studio Dragon | 21.7× | 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: The Pinkfong / 더핑크퐁컴퍼니 / 403850 / KRX:403850
Source: KRX statistical information