SM Entertainment Co. Ltd (041510) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of SM Entertainment Co. Ltd KRW 159,911, price KRW 79,200, upside +101.9%, quality 72 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
60‑month range 29,796 KRW – 155,083 KRW · fair‑value band 102,596 KRW – 279,259 KRW · the 79,200 KRW price screens below the 159,911 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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SM Entertainment Co., Ltd. engages in music/sound production, talent management, and music/audio content publication activities in South Korea and internationally. The company produces music under the BALJUNSO label, movies, TV dramas and shows, musical programs, and concerts; and provides a magazine under the THE CELEBRITY name and social network services.
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SM Entertainment Co., Ltd. engages in music/sound production, talent management, and music/audio content publication activities in South Korea and internationally. The company produces music under the BALJUNSO label, movies, TV dramas and shows, musical programs, and concerts; and provides a magazine under the THE CELEBRITY name and social network services. It also operates wine shops, travel agencies, celebrity shops, multi-functional theatre, online gift shop, as well as mobile entertainment platforms, including SMTOWN, KWANGYA CLUB, Fanbook, SUPERSTAR SMTOWN, and karaoke app. In addition, it is involved in the management and exhibition businesses. Further, the company engages in restaurant related businesses. SM Entertainment Co., Ltd. was founded in 1995 and is based in Seoul, South Korea.
Stock analysis
SM Entertainment Co. Ltd (041510) currently trades at 79,200 KRW, while our model-based Fair Value estimate is 159,911 KRW, implying the stock looks roughly 50.5% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of 334,295 KRW per share, and 22 of the 26 models we run sit above the 79,200 KRW price.
Bear case: the Asset-Based group reads lowest at 29,341 KRW, and 4 of the 26 models stay below the price. Evidence for this calculation is medium.
Scenario range: 102,596 KRW (bear) to 279,259 KRW (bull), the price of 79,200 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.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
SM Entertainment Co. Ltd reported revenue of 1.2T KRW in FY2025 versus 702B KRW in FY2021, a compound +13.8%/yr. Reported net income was 347B KRW in FY2025, compounding +27.0%/yr from FY2021.
Key figures
Market cap 1.8T KRW (≈ $1.4B) · P/S ratio 1.42 · Dividend yield 2.0% · Net margin 29.6% · Return on equity 10.8% · Return on assets (EBIT) 5.9% · Operating margin 13.6% · Revenue (TTM) 1.3T KRW.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 58 out of 100 (medium confidence).
What moves the price
The share trades about 41% below its 52-week high and 19% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at −3% fair-value upside, at 102%, 041510 screens cheaper than that median.
Fair Value models
Bear 102,596 KRWFair Value 159,911 KRWBull 279,259 KRW
Price 79,200 KRW · Upside +101.9%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model.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.Evidence ⓘEvidence = 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.78/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+18.7%
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.
+11.4%
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.
+15.2%
Start year 2020 (pandemic). Over 10 years: +13.8% a year
Revenue growth 19 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.
+21.3%
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What shareholders gained per year (last 5 years), in KRW (mathematically smoothed) ⓘ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. Smoothed = median of all growth paths between the years of the window (trend line on the logarithm of earnings per share): a single extreme year cannot distort the rate. The reported figure stays in the tooltip. 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.
−3.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year−5.7%
Dividend (yield on the price)2.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.21.6% vs 56.9%, slowing
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.−3% → 16%
2025 sits 348% above its own trend. The rate follows the median trend of the last 5 years, not that single year.
Start year 2020 (pandemic)
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).
−4.4%
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.
+6.7%
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 −6.4% a year for the price and +4.5% for the forecasts.
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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.Entertainment · 229 stocks
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Cite: Fair Value Calculator (2026). "SM Entertainment Co. Ltd Fair Value". https://www.fairvalue-calculator.com/stock/041510
Frequently asked questions
Is SM Entertainment Co. Ltd (041510) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of 159,911 KRW versus a price of 79,200 KRW, about +102% upside (undervalued).
What is the fair value of 041510?
Our model-based fair value for SM Entertainment Co. Ltd is 159,911 KRW (as of Oct 1, 2026), built from audited fundamentals. The current price: 79,200 KRW.
What is the quality score of 041510?
SM Entertainment Co. Ltd 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 SM Entertainment Co. Ltd (041510)?
Our model-based price target is the fair value of 159,911 KRW (as of Oct 1, 2026) from 26 valuation models. Cautious scenario 102,596 KRW, optimistic scenario 279,259 KRW. It is a calculation from audited fundamentals, not an analyst target.
What is the SM Entertainment Co. Ltd stock forecast for 2026?
Our models put fair value at 159,911 KRW, about +102% upside versus a price of 79,200 KRW (undervalued). Cautious scenario 102,596 KRW, optimistic scenario 279,259 KRW. The calculation is refreshed regularly with new filings.
What is the revenue of SM Entertainment Co. Ltd (041510)?
SM Entertainment Co. Ltd reported trailing-twelve-month revenue of about 1.3T KRW (latest available figure, as of Oct 1, 2026).
Does SM Entertainment Co. Ltd pay a dividend?
SM Entertainment Co. Ltd currently shows a dividend yield of about 2.05% relative to its recent price (as of Oct 1, 2026).
What growth is priced into SM Entertainment Co. Ltd (041510)?
For today's price to be fair in a discounted-cash-flow model, SM Entertainment Co. Ltd would have to grow free cash flow by -4.4 % per year for five years (discount rate 10.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +15.2 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of 041510 use?
Our models discount SM Entertainment Co. Ltd at 10.2 %: a base by market capitalisation (small), damped by beta 0.27, 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 SM Entertainment Co. Ltd that is -4.4 % per year a year over ten years, using the same discount rate (10.2 %) and the same formula as our fair value.
How much growth has SM Entertainment Co. Ltd (041510) delivered so far?
Over the past 5 years revenue at SM Entertainment Co. Ltd grew +15.2 % a year. The price currently implies -4.4 % 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 SM Entertainment Co. Ltd (041510) growing?
The median revenue growth in the sector is +3.4 % a year. That is the yardstick for the growth priced into SM Entertainment Co. Ltd (-4.4 % 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 SM Entertainment Co. Ltd (041510)?
The free-cash-flow yield on the price is 8.47 %: that much free cash flow SM Entertainment Co. Ltd produces per unit of market value. When it exceeds the discount rate of our models (10.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of SM Entertainment Co. Ltd (041510)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For SM Entertainment Co. Ltd it is 159,911 KRW per share (as of Oct 1, 2026), against a price of 79,200 KRW. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is SM Entertainment Co. Ltd stock overvalued or undervalued in 2026?
As of Oct 1, 2026, 041510 trades below its calculated fair value: price 79,200 KRW, fair value 159,911 KRW, a gap of about +102% (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 041510?
No. The price is what the market pays today (79,200 KRW); the fair value is what the company's own numbers justify (159,911 KRW). For SM Entertainment Co. Ltd the two are 80,711 KRW per share apart. That gap is exactly why we show both numbers side by side.
How much is SM Entertainment Co. Ltd worth?
The market values SM Entertainment Co. Ltd at about 1.8T KRW (market capitalisation, as of Oct 1, 2026). Per share that is 79,200 KRW; our models calculate a fair value of 159,911 KRW per share.
What do the bullish and bearish scenarios say about 041510?
Our models span a range for SM Entertainment Co. Ltd: cautious scenario 102,596 KRW, base 159,911 KRW, optimistic 279,259 KRW per share (as of Oct 1, 2026, price 79,200 KRW). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of SM Entertainment Co. Ltd (041510)?
Balance-sheet figures for SM Entertainment Co. Ltd (as of Oct 1, 2026): return on equity 10.8%. They feed the Quality Score of 72/100, which measures business quality independently of the share price.
How far is 041510 from its 52-week high?
SM Entertainment Co. Ltd trades at 79,200 KRW, about 41% below its 52-week high of 135,000 KRW and 19% above the low of 66,500 KRW (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of 159,911 KRW is for.
Which stocks are comparable to SM Entertainment Co. Ltd?
From the same area (Communication Services) we also value Netflix, Inc, The Walt Disney Company, Warner Bros. Discovery, Inc, Live Nation Entertainment, Inc, 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 SM Entertainment Co. Ltd stock attractive at the current price?
The data as of Oct 1, 2026: price 79,200 KRW, calculated fair value 159,911 KRW (+102%), Quality Score 72/100, 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 041510 calculated?
We run SM Entertainment Co. Ltd 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 159,911 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 14.9 % above its aggregate fair value. SM Entertainment Co. Ltd currently trades 50 % 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 SM Entertainment Co. Ltd (041510)?
The closing price on Oct 2, 2026 was 79,200 KRW. Our model-based fair value is 159,911 KRW, about +102% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with SM Entertainment Co. Ltd right now?
The rarer combination: high quality (72/100) AND below fair value. That earns a closer look rather than a quick verdict. The price is below even our cautious bear case (102,596 KRW). The market is more pessimistic than our downside scenario. The model range is unusually wide (102,596 KRW to 279,259 KRW). The outcome hinges heavily on assumptions, so read the point estimate with caution.
Key figures of SM Entertainment Co. Ltd
How large is the market capitalisation of SM Entertainment Co. Ltd (041510)?
The market capitalisation of SM Entertainment Co. Ltd is 1.8T KRW (≈ $1.4B). 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 SM Entertainment Co. Ltd (041510)?
The price-to-sales ratio of SM Entertainment Co. Ltd is 1.42 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the dividend yield of SM Entertainment Co. Ltd (041510)?
The dividend yield of SM Entertainment Co. Ltd is 2.0%. 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 SM Entertainment Co. Ltd (041510)?
The net margin of SM Entertainment Co. Ltd is 29.6% (fiscal year 2025). 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 SM Entertainment Co. Ltd (041510)?
The return on equity (ROE) of SM Entertainment Co. Ltd is 10.8% (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 SM Entertainment Co. Ltd (041510)?
On an EBIT basis the return on assets of SM Entertainment Co. Ltd is 5.9% (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 SM Entertainment Co. Ltd (041510)?
The operating margin of SM Entertainment Co. Ltd is 13.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at SM Entertainment Co. Ltd (041510)?
Revenue at SM Entertainment Co. Ltd is growing +15.4% versus a year earlier (3y avg +11.4%). 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 SM Entertainment Co. Ltd (041510)?
Earnings per share at SM Entertainment Co. Ltd are growing +0.6% versus a year earlier. How much earnings per share grew versus a year earlier.
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