Kakao Corp (035720) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Kakao Corp stock KRW 33,722, price KRW 32,200, upside +4.7%, quality 58 out of 100. Rating: fairly valued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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The stock costs about what our calculation considers fair.
Low debt
Generates free cash flow
0.2% dividend yield · Well covered
Broad data
Fair value 33,722 KRW · Fairly valued (+4.7%)
Quality 58/100
Mixed Growth(revenue 5y +14.3 %/yr in KRW)
Thin margins · 4.1% net margin (TTM)
Trails peers(5/15)
Narrow moat39/100 · thin data
Risks from the AI analysis
🚩Generative AI could commoditise KakaoTalk AI agents🚩Naver could capture AI-driven ad and commerce share🚩Data privacy and antitrust actions could restrict data use
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range 28,800 KRW – 166,592 KRW · fair‑value band 27,256 KRW – 41,437 KRW · the 32,200 KRW price screens below the 33,722 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Kakao Corp. operates mobile and online platforms in South Korea.
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The company offers Kakao Pay, a financial service solution; Kakao Bank, a banking solution; Kakao Mobility for mobility services; Kakao Style, a lifestyle solution; Kakao Entertainment, a solution for entertainment industry; Kakao Games, a solution for the gaming industry; Kakao piccoma, a content service platform; Kakao Brain, an artificial intelligence solution; Kakao Enterprise, a cloud service solution; and Kakao Healthcare, a mobile-based personal healthcare solution.
It also provides Linkagelab, a workplace for individuals with disabilities; investment services in start-ups under the Kakao Investment name; and various solutions under the KakaoTalk, Kakao Business Service, Daum, Kakao Ventures, and Kakao Map names.
The company was formerly known as Daum Kakao Corp. and changed its name to Kakao Corp. in October 2015. Kakao Corp. was founded in 1995 and is headquartered in Jeju-si, South Korea.
Stock analysis
Kakao Corp (035720) currently trades at 32,200 KRW, while our model-based Fair Value estimate is 33,722 KRW, so the stock looks roughly fairly valued today (gap 4.5%).
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Valuation
Bull case: the DCF Models group reads highest at a median of 56,183 KRW per share, and 15 of the 26 models we run sit above the 32,200 KRW price.
Bear case: the Asset-Based group reads lowest at 9,159 KRW, and 11 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: 27,256 KRW (bear) to 41,437 KRW (bull), the price of 32,200 KRW sits inside 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 58/100 (solid quality), in the Communication Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Kakao Corp reported revenue of 8.1T KRW in FY2025 versus 6.1T KRW in FY2021, a compound +7.2%/yr. Reported net income was 491B KRW in FY2025, compounding −22.9%/yr from FY2021.
Key figures
Market cap 14.2T KRW (≈ $10.4B) Large · P/E ratio 25.3 · P/S ratio 1.67 · EPS (TTM) 1,148 KRW · Dividend yield 0.2% · Net margin 4.1% · Return on equity 3.7% · Return on assets (EBIT) 2.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 39 out of 100 (low confidence).
What moves the price
The share trades about 50% below its 52-week high and 12% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 15% fair-value upside, at 5%, 035720 screens richer than that median.
Fair Value models
Bear27,256 KRWFair Value 33,722 KRWBull41,437 KRW
Price 32,200 KRW · Upside +4.7%
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 (911.72 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.82/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+3.0%
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.
+6.0%
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.
+14.3%
Start year 2020 (pandemic). Over 10 years: +24.1% a year
Revenue growth 24 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.
+20.6%
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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.
−8.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year−9.0%
Dividend (yield on the price)0.2%
Profit margin 2020 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.11% → 9%
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).
+1.4%
Yearly growth needed for the next five years to justify today's price.
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.
+6.0%
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 −0.6% a year for the price and +3.8% for the forecasts.
AI conclusion: Moderate scores from limited data show low returns on equity and assets as the main weakness, while the planned split aims to build focus on AI as the key potential strength.
Main risk: Global AI agents from OpenAI or rivals could outperform Kakao's Kanana and ChatGPT integrations in KakaoTalk, eroding differentiation and monetisation of advertising and commerce features.
Bull case: Kakao could leverage its 50 million KakaoTalk users' relationship data to build superior context-aware agents that integrate commerce and ads more seamlessly than standalone global tools.
Bear case: If global AI agents dominate and regulators tighten data rules, Kakao's core platform might lose relevance for daily tasks, with AI services failing to offset slowing traditional revenues.
Kakao plans to split into an AI-focused company and an investment vehicle early next year to sharpen focus amid rapid industry shifts. Recent briefings show core platform revenues slowing in the third quarter while AI monetization strategies still need clearer proof points. Will separating the businesses unlock faster AI progress that offsets the drag from traditional segments, or will both entities face the same execution hurdles?
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.Internet Content & Information · 126 stocks
Beats the industry median on 5/15 measures
Overall it trails its industry peers.
Valuation
Quality Score58 · Below median
Fair Value upside+4.7% · Below median
Profitability
Return on equity (12 months)3.7% · Below median
Return on assets1.8% · Below median
Net margin (12 months)4.1% · Below median
Operating margin (12 months)13.2% · Above median
Growth and dividend
Revenue growth (quarter YoY)9.4% · Above median
Dividend yield (12 months)0.2% · Bottom 25%
Balance sheet
Debt / equity0.09× · Above median
Valuation Multiplesvs Internet Content & Information median · lower = cheaper
P/E (12 months)25.3× · Pricier than median
P/B1.26× · Cheaper than median
P/S (12 months)1.67× · Pricier than median
Price / free cash flow (fiscal year)17.9× · Pricier than median
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Cite: Fair Value Calculator (2026). "Kakao Corp Fair Value". https://www.fairvalue-calculator.com/stock/035720
Frequently asked questions
Is Kakao Corp (035720) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of 33,722 KRW versus a price of 32,200 KRW, about +5% upside (fairly valued).
What is the fair value of 035720?
Our model-based fair value for Kakao Corp is 33,722 KRW (as of Nov 6, 2026), built from audited fundamentals. The current price: 32,200 KRW.
What is the quality score of 035720?
Kakao Corp has a Quality Score of 58/100. 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 Kakao Corp (035720)?
Our model-based price target is the fair value of 33,722 KRW (as of Nov 6, 2026) from 26 valuation models. Cautious scenario 27,256 KRW, optimistic scenario 41,437 KRW. It is a calculation from audited fundamentals, not an analyst target.
What is the Kakao Corp stock forecast for 2026?
Our models put fair value at 33,722 KRW, about +5% upside versus a price of 32,200 KRW (fairly valued). Cautious scenario 27,256 KRW, optimistic scenario 41,437 KRW. The calculation is refreshed regularly with new filings.
What is the revenue of Kakao Corp (035720)?
Kakao Corp reported trailing-twelve-month revenue of about 8.5T KRW (latest available figure, as of Nov 6, 2026).
Does Kakao Corp pay a dividend?
Kakao Corp currently shows a dividend yield of 0.23% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Kakao Corp (035720)?
For today's price to be fair in a discounted-cash-flow model, Kakao Corp would have to grow free cash flow by +1.4 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +14.3 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of 035720 use?
Our models discount Kakao Corp at 9.9 %: a base by market capitalisation (large), damped by beta 1.10, 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 Kakao Corp that is +1.4 % per year a year over ten years, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Kakao Corp (035720) delivered so far?
Over the past 5 years revenue at Kakao Corp grew +14.3 % a year. The price currently implies +1.4 % per year free-cash-flow growth a 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 Kakao Corp (035720) growing?
The median revenue growth in the sector is +3.6 % a year. That is the yardstick for the growth priced into Kakao Corp (+1.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Kakao Corp (035720)?
The free-cash-flow yield on the price is 5.58 %: that much free cash flow Kakao Corp produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Kakao Corp (035720)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Kakao Corp it is 33,722 KRW per share (as of Nov 6, 2026), against a price of 32,200 KRW. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Kakao Corp stock overvalued or undervalued in 2026?
As of Nov 6, 2026, 035720 trades below its calculated fair value: price 32,200 KRW, fair value 33,722 KRW, a gap of about +5% (fairly valued). 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 035720?
No. The price is what the market pays today (32,200 KRW); the fair value is what the company's own numbers justify (33,722 KRW). For Kakao Corp the two are 1,522 KRW per share apart. That gap is exactly why we show both numbers side by side.
How much is Kakao Corp worth?
The market values Kakao Corp at about 14.2T KRW (market capitalisation, as of Nov 6, 2026). Per share that is 32,200 KRW; our models calculate a fair value of 33,722 KRW per share.
What do the bullish and bearish scenarios say about 035720?
Our models span a range for Kakao Corp: cautious scenario 27,256 KRW, base 33,722 KRW, optimistic 41,437 KRW per share (as of Nov 6, 2026, price 32,200 KRW). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 035720?
Kakao Corp trades at a price-to-earnings ratio of 25.3 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 33,722 KRW is built from several models across several years. Other multiples: PEG 1.2, P/B 1.3, P/S 1.7, EV/EBITDA 5.2.
What is the PEG ratio of 035720?
The PEG ratio of Kakao Corp is 1.20 (P/E divided by earnings growth, as of Nov 6, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Kakao Corp (035720)?
Balance-sheet figures for Kakao Corp (as of Nov 6, 2026): return on equity 3.7%, debt of 0.09 per unit of equity. They feed the Quality Score of 58/100, which measures business quality independently of the share price.
How far is 035720 from its 52-week high?
Kakao Corp trades at 32,200 KRW, about 50% below its 52-week high of 64,010 KRW and 12% above the low of 28,800 KRW (as of Nov 5, 2026). Distance from the high says nothing about value: that is what the fair value of 33,722 KRW is for.
Which stocks are comparable to Kakao Corp?
From the same area (Communication Services) we also value Alphabet Inc, Meta Platforms, Inc, Tencent Holdings, Spotify Technology S.A, 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 Kakao Corp stock attractive at the current price?
The data as of Nov 6, 2026: price 32,200 KRW, calculated fair value 33,722 KRW (+5%), Quality Score 58/100, from 26 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 035720 calculated?
We run Kakao Corp through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 33,722 KRW, 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 15.5% above its aggregate fair value. Kakao Corp currently trades 5% 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 Kakao Corp (035720)?
The closing price on Nov 5, 2026 was 32,200 KRW. Our model-based fair value is 33,722 KRW, about +5% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Kakao Corp right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. The price sits in the lower half of our model range, the side with the larger margin of safety. The data supports the verdict: every model runs on fully documented inputs.
Key figures of Kakao Corp
How large is the market capitalisation of Kakao Corp (035720)?
The market capitalisation of Kakao Corp is 14.2T KRW (≈ $10.4B). 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 Kakao Corp (035720)?
The price-to-sales ratio of Kakao Corp is 1.67 (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 Kakao Corp (035720)?
Earnings per share at Kakao Corp are 1,148 KRW (price ÷ EPS = P/E 25.3). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Kakao Corp (035720)?
The dividend yield of Kakao Corp is 0.2% (payout 6.5%). 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 Kakao Corp (035720)?
The net margin of Kakao Corp is 4.1% (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 Kakao Corp (035720)?
The return on equity (ROE) of Kakao Corp is 3.7% (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 Kakao Corp (035720)?
On an EBIT basis the return on assets of Kakao Corp is 2.3% (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 Kakao Corp (035720)?
The operating margin of Kakao Corp is 13.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Kakao Corp (035720)?
Revenue at Kakao Corp is growing +9.4% versus a year earlier (3y avg +6.0%). 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 Kakao Corp (035720)?
Earnings per share at Kakao Corp are growing −90.3% versus a year earlier. How much earnings per share grew versus a year earlier.
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Broad data
Nov 6, 2026