Krafton Inc (259960) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Krafton Inc stock KRW 410,472, price KRW 220,500, upside +86.2%, quality 72 out of 100. Rating: strongly undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
The stock costs 46% less than our calculation considers fair.
Fair value 410,472 KRW · Strongly undervalued
Quality 72/100
Healthy Growth(revenue 5y +14.8 %/yr in KRW)
Solidly profitable · 18.8% net margin (TTM)
Low debt
Generates free cash flow
1.0% dividend yield · Well covered
Ranks above peers(13/14)
Broad data
Last quarter vs. a year ago: revenue +95%, profit +43%.
Wide moat70/100 · thin data
Risks from the AI analysis
🚩Price drop: Softer near-term PUBG outlook and wait for fresh titles to scale🚩Delta Force and Valorant Mobile erode PUBG Mobile share🚩Heavy reliance on single PUBG IP with new titles lagging
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 7, 2026.
How to read this chart
60‑month range 145,266 KRW – 562,225 KRW · fair‑value band 280,449 KRW – 533,614 KRW · the 220,500 KRW price screens below the 410,472 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 7, 2026.
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KRAFTON, Inc. engages in the software development and related ancillary businesses in Asia, Korea, the United States, Europe, and internationally. The company offers PC, mobile, console, and other games.
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It is also involved in development and distribution of mobile games and applications, and game software business; consulting advisory and investment activities; production of video contents; and development and servicing of games.
The company was formerly known as Bluehole Studio Inc. and changed its name to KRAFTON, Inc. in November 2018. KRAFTON, Inc. was incorporated in 2007 and is headquartered in Seoul, South Korea.
Stock analysis
Krafton Inc (259960) currently trades at 220,500 KRW, while our model-based Fair Value estimate is 410,472 KRW, implying the stock looks roughly 46% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of 508,137 KRW per share, and 22 of the 24 models we run sit above the 220,500 KRW price.
Bear case: the Asset-Based group reads lowest at 56,930 KRW, and 2 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: 280,449 KRW (bear) to 533,614 KRW (bull), the price of 220,500 KRW sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 72/100 (solid quality), in the Communication Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Krafton Inc reported revenue of 3.3T KRW in FY2025 versus 1.9T KRW in FY2021, a compound +15.2%/yr. Reported net income was 735B KRW in FY2025, compounding +9.0%/yr from FY2021.
Key figures
Market cap 9.8T KRW (≈ $7.3B) Mid · P/E ratio 11.6 · P/S ratio 2.21 · EPS (TTM) 19,213 KRW · Dividend yield 1.0% · Net margin 18.8% · Return on equity 11.7% · Return on assets (EBIT) 12.4% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 70 out of 100 (low confidence).
What moves the price
The share trades about 25% below its 52-week high and 22% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 50% fair-value upside, at 86%, 259960 screens cheaper than that median.
Fair Value models
Bear280,449 KRWFair Value 410,472 KRWBull533,614 KRW
Price 220,500 KRW · Upside +86.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (14,555 KRW per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+22.8%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+21.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.8%
Start year 2020 (pandemic)
Revenue growth 7 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+16.8%
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What shareholders gained per year (last 5 years), in KRW ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in KRW: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+5.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.0%
Dividend (yield on the price)1.0%
Profit margin 2021 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.34% → 32%
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−3.4%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+11.6%
Yearly sales growth analysts expect, extended to five years.
After inflation (South Korea: IMF forecast 2.1% a year to 2030, 2.1% from 2016 to 2025) that is about −5.4% a year for the price and +9.4% for the forecasts.
AI conclusion: Record results from the PUBG franchise form the main strength, while thin evidence leaves durability and any efficiency edge unconfirmed as the central weakness.
Main risk: Tencent's Delta Force and Riot's Valorant Mobile could draw players away from PUBG Mobile, pressuring revenues and margins in the mobile segment that contributes substantially to Krafton's results.
Bull case: By successfully expanding PUBG into a user-generated content platform akin to Fortnite and scaling multiple new franchise IPs from its pipeline, Krafton could diversify revenue streams and reduce reliance on any single title.
Bear case: If PUBG revenues soften further amid intensifying competition and new titles continue to underperform or face delays, Krafton could see prolonged stagnation in growth and profitability with limited alternatives to offset the flagship's contribution.
Krafton keeps delivering record results from its PUBG franchise while pushing new game development and tech investments such as the expanded India push into AI and robotics. Analyst notes point to a softer near-term PUBG outlook and the wait for fresh titles to scale. Does extending the flagship IP create more durable value than building a broader set of series?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Electronic Gaming & Multimedia · 164 stocks
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Krafton Inc Fair Value". https://www.fairvalue-calculator.com/stock/259960
Frequently asked questions
Is Krafton Inc (259960) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of 410,472 KRW versus a price of 220,500 KRW, about +86% upside (undervalued).
What is the fair value of 259960?
Our model-based fair value for Krafton Inc is 410,472 KRW (as of Nov 7, 2026), built from audited fundamentals. The current price: 220,500 KRW.
What is the quality score of 259960?
Krafton Inc has a Quality Score of 72/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Krafton Inc (259960)?
Our model-based price target is the fair value of 410,472 KRW (as of Nov 7, 2026) from 24 valuation models. Cautious scenario 280,449 KRW, optimistic scenario 533,614 KRW. It is a calculation from audited fundamentals, not an analyst target.
What is the Krafton Inc stock forecast for 2026?
Our models put fair value at 410,472 KRW, about +86% upside versus a price of 220,500 KRW (undervalued). Cautious scenario 280,449 KRW, optimistic scenario 533,614 KRW. The calculation is refreshed regularly with new filings.
What is the revenue of Krafton Inc (259960)?
Krafton Inc reported trailing-twelve-month revenue of about 4.5T KRW (latest available figure, as of Nov 7, 2026).
Does Krafton Inc pay a dividend?
Krafton Inc currently shows a dividend yield of 1.02% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of Krafton Inc (259960) and when is the ex-dividend date?
Krafton Inc pays a dividend of 2,240 KRW per share a year, a dividend yield of 1.0%. The last ex-dividend date was Feb 26, 2026. The payout ratio is 11.7% of earnings. Free cash flow covers the dividend 9.69 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Krafton Inc (259960)?
For today's price to be fair in a discounted-cash-flow model, Krafton Inc would have to grow free cash flow by -3.4 % per year for five years (discount rate 9.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.8 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of 259960 use?
Our models discount Krafton Inc at 9.5 %: a base by market capitalisation (mid), damped by beta 0.74, country premium for South Korea. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Krafton Inc that is -3.4 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (9.5 %) and the same formula as our fair value.
How much growth has Krafton Inc (259960) delivered so far?
Over the past 5 years revenue at Krafton Inc grew +14.8 % a year. The price currently implies free-cash-flow growth of -3.4 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Krafton Inc (259960) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into Krafton Inc (-3.4 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Krafton Inc (259960)?
The free-cash-flow yield on the price is 9.58 %: that much free cash flow Krafton Inc produces per unit of market value. When it exceeds the discount rate of our models (9.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Krafton Inc (259960)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Krafton Inc it is 410,472 KRW per share (as of Nov 7, 2026), against a price of 220,500 KRW. It is the blended result of 24 valuation models in 7 families (DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Krafton Inc stock overvalued or undervalued in 2026?
As of Nov 7, 2026, 259960 trades below its calculated fair value: price 220,500 KRW, fair value 410,472 KRW, a gap of about +86% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 259960?
No. The price is what the market pays today (220,500 KRW); the fair value is what the company's own numbers justify (410,472 KRW). For Krafton Inc the two are 189,972 KRW per share apart. That gap is exactly why we show both numbers side by side.
How much is Krafton Inc worth?
The market values Krafton Inc at about 9.8T KRW (market capitalisation, as of Nov 7, 2026). Per share that is 220,500 KRW; our models calculate a fair value of 410,472 KRW per share.
What do the bullish and bearish scenarios say about 259960?
Our models span a range for Krafton Inc: cautious scenario 280,449 KRW, base 410,472 KRW, optimistic 533,614 KRW per share (as of Nov 7, 2026, price 220,500 KRW). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 259960?
Krafton Inc trades at a price-to-earnings ratio of 11.6 (as of Nov 7, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 410,472 KRW is built from several models across several years. Median P/E at fiscal year-end, 5 fiscal years (2021 to 2025), reported earnings, FY2025 ex one-offs: 15.1. Other multiples: P/B 1.4, P/S 2.2, EV/EBITDA 6.1.
How solid is the balance sheet of Krafton Inc (259960)?
Balance-sheet figures for Krafton Inc (as of Nov 7, 2026): return on equity 11.7%. They feed the Quality Score of 72/100, which measures business quality independently of the share price.
How far is 259960 from its 52-week high?
Krafton Inc trades at 220,500 KRW, about 25% below its 52-week high of 293,500 KRW and 22% above the low of 181,000 KRW (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of 410,472 KRW is for.
Which stocks are comparable to Krafton Inc?
From the same area (Communication Services) we also value NetEase, Inc, Take-Two Interactive Software, Inc, Roblox Corporation, Zhejiang Century Huatong Group, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Krafton Inc stock attractive at the current price?
The data as of Nov 7, 2026: price 220,500 KRW, calculated fair value 410,472 KRW (+86%), Quality Score 72/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 259960 calculated?
We run Krafton Inc through 24 models from 7 families: DCF Models, Earnings-Based, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of 410,472 KRW builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Krafton Inc currently trades 46% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Krafton Inc (259960)?
The closing price on Nov 6, 2026 was 220,500 KRW. Our model-based fair value is 410,472 KRW, about +86% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Krafton Inc right now?
The price is below even our cautious bear case (280,449 KRW). The market is more pessimistic than our downside scenario. Solid quality (72/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (280,449 KRW to 533,614 KRW) leaves room in how you read the outcome.
Key figures of Krafton Inc
How large is the market capitalisation of Krafton Inc (259960)?
The market capitalisation of Krafton Inc is 9.8T KRW (≈ $7.3B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Krafton Inc (259960)?
The price-to-sales ratio of Krafton Inc is 2.21 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Krafton Inc (259960)?
Earnings per share at Krafton Inc are 19,213 KRW (price ÷ EPS = P/E 11.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Krafton Inc (259960)?
The dividend yield of Krafton Inc is 1.0% (payout 11.7%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Krafton Inc (259960)?
The net margin of Krafton Inc is 18.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Krafton Inc (259960)?
The return on equity (ROE) of Krafton Inc is 11.7% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Krafton Inc (259960)?
On an EBIT basis the return on assets of Krafton Inc is 12.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Krafton Inc (259960)?
The operating margin of Krafton Inc is 31.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Krafton Inc (259960)?
Revenue at Krafton Inc is growing +94.9% versus a year earlier (3y avg +21.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Krafton Inc (259960)?
Earnings per share at Krafton Inc are growing +43.0% versus a year earlier. How much earnings per share grew versus a year earlier.
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Broad data
Nov 7, 2026