YG Entertainment Inc (122870) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of YG Entertainment Inc stock KRW 49,024, price KRW 42,300, upside +15.9%, quality 75 out of 100. Rating: undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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 7, 2026.
How to read this chart
60‑month range 29,895 KRW – 106,900 KRW · fair‑value band 34,317 KRW – 63,732 KRW · the 42,300 KRW price screens below the 49,024 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 7, 2026.
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YG Entertainment Inc. operates as an entertainment company in South Korea, Japan, and internationally.
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The company engages in planning, production, and sale of music records and albums; distributes music online; provides services to artists for dramas, movies, advertisements, events, etc.; record and music investment distribution and music platform content sourcing business, advertising agency and production, as well as manufactures and sells MD and cosmetics.
It also releases artists, such as JINUSEAN, 1TYM, SE7EN, BIGBANG, 2NE1, AKMU, WINNER, iKON, BLACKPINK, and TREASURE, as well as creates and provides content services. The company was formerly known as Hyun Entertainment and changed its name to YG Entertainment Inc. in April 2001.
YG Entertainment Inc. was founded in 1996 and is headquartered in Seoul, South Korea.
Stock analysis
YG Entertainment Inc (122870) currently trades at 42,300 KRW, while our model-based Fair Value estimate is 49,024 KRW, implying the stock looks roughly 14% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of 65,607 KRW per share, and 15 of the 26 models we run sit above the 42,300 KRW price.
Bear case: the Asset-Based group reads lowest at 13,156 KRW, and 11 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: 34,317 KRW (bear) to 63,732 KRW (bull), the price of 42,300 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 75/100 (high quality), in the Communication Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
YG Entertainment Inc reported revenue of 545B KRW in FY2025 versus 322B KRW in FY2021, a compound +14.1%/yr. Reported net income was 36.9B KRW in FY2025, compounding +53.4%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap 785B KRW (≈ $580M) Small · P/E ratio 23.0 · P/S ratio 1.27 · EPS (TTM) 1,826 KRW · Dividend yield 0.7% · Net margin 5.5% · Return on equity 7.7% · Return on assets (EBIT) 7.0% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 41 out of 100 (low confidence).
What moves the price
The share trades about 47% below its 52-week high and 14% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at −13% fair-value upside, at 16%, 122870 screens cheaper than that median.
Fair Value models
Bear34,317 KRWFair Value 49,024 KRWBull63,732 KRW
Price 42,300 KRW · Upside +15.9%
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 (1,309 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.90/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+49.4%
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.
+11.7%
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.
+16.4%
Start year 2020 (pandemic). Over 10 years: +10.9% a year
Revenue growth 14 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.
+14.9%
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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.
≈ +35.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year≈ +35.2%
Dividend (yield on the price)0.7%
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.base effect: 35.2% / 5.8%
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.4% → 11%
⚠ Base effect: the rate starts in the earnings trough around 2020 (starting value 440 per share, median 987 in 2016 to 2018). It measures the recovery from the trough, not lasting growth.
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).
−7.3%
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.
−2.2%
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 −9.2% a year for the price and −4.2% for the forecasts.
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.Entertainment · 221 stocks
Beats the industry median on 11/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score75 · Top 25%
Fair Value upside+15.9% · Above median
Profitability
Return on equity (12 months)7.7% · Above median
Return on assets4.4% · Top 25%
Net margin (12 months)5.5% · Above median
Operating margin (12 months)7.7% · Above median
Growth and dividend
Revenue growth (quarter YoY)27.2% · Top 25%
Dividend yield (12 months)0.7% · Bottom 25%
Balance sheet
Debt / equity0.01× · Below median
Valuation Multiplesvs Entertainment median · lower = cheaper
P/E (12 months)23.0× · Pricier than median
P/B1.53× · Pricier than median
P/S (12 months)1.27× · Cheaper than median
Price / free cash flow (fiscal year)9.4× · Cheaper than median
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). "YG Entertainment Inc Fair Value". https://www.fairvalue-calculator.com/stock/122870
Frequently asked questions
Is YG Entertainment Inc (122870) overvalued or undervalued?
As of Nov 7, 2026, our model estimates a fair value of 49,024 KRW versus a price of 42,300 KRW, about +16% upside (undervalued).
What is the fair value of 122870?
Our model-based fair value for YG Entertainment Inc is 49,024 KRW (as of Nov 7, 2026), built from audited fundamentals. The current price: 42,300 KRW.
What is the quality score of 122870?
YG Entertainment Inc has a Quality Score of 75/100. 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 YG Entertainment Inc (122870)?
Our model-based price target is the fair value of 49,024 KRW (as of Nov 7, 2026) from 26 valuation models. Cautious scenario 34,317 KRW, optimistic scenario 63,732 KRW. It is a calculation from audited fundamentals, not an analyst target.
What is the YG Entertainment Inc stock forecast for 2026?
Our models put fair value at 49,024 KRW, about +16% upside versus a price of 42,300 KRW (undervalued). Cautious scenario 34,317 KRW, optimistic scenario 63,732 KRW. The calculation is refreshed regularly with new filings.
What is the revenue of YG Entertainment Inc (122870)?
YG Entertainment Inc reported trailing-twelve-month revenue of about 620B KRW (latest available figure, as of Nov 7, 2026).
Does YG Entertainment Inc pay a dividend?
YG Entertainment Inc currently shows a dividend yield of 0.71% relative to its recent price (as of Nov 7, 2026).
How much is the dividend of YG Entertainment Inc (122870) and when is the ex-dividend date?
YG Entertainment Inc pays a dividend of 300.00 KRW per share a year, a dividend yield of 0.7%. The last ex-dividend date was Dec 29, 2025. A dividend has been paid every year since 2021. The payout ratio is 16.4% of earnings. Free cash flow covers the dividend 14.97 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 YG Entertainment Inc (122870)?
For today's price to be fair in a discounted-cash-flow model, YG Entertainment Inc would have to grow free cash flow by -7.3 % per year for five years (discount rate 10.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +16.4 % per year. As of Nov 7, 2026.
What discount rate (WACC) does the fair value of 122870 use?
Our models discount YG Entertainment Inc at 10.6 %: a base by market capitalisation (small), damped by beta 0.63, 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 YG Entertainment Inc that is -7.3 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.6 %) and the same formula as our fair value.
How much growth has YG Entertainment Inc (122870) delivered so far?
Over the past 5 years revenue at YG Entertainment Inc grew +16.4 % a year. The price currently implies free-cash-flow growth of -7.3 % 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 YG Entertainment Inc (122870) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into YG Entertainment Inc (-7.3 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of YG Entertainment Inc (122870)?
The free-cash-flow yield on the price is 10.62 %: that much free cash flow YG Entertainment Inc produces per unit of market value. When it exceeds the discount rate of our models (10.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of YG Entertainment Inc (122870)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For YG Entertainment Inc it is 49,024 KRW per share (as of Nov 7, 2026), against a price of 42,300 KRW. It is the blended result of 26 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is YG Entertainment Inc stock overvalued or undervalued in 2026?
As of Nov 7, 2026, 122870 trades below its calculated fair value: price 42,300 KRW, fair value 49,024 KRW, a gap of about +16% (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 122870?
No. The price is what the market pays today (42,300 KRW); the fair value is what the company's own numbers justify (49,024 KRW). For YG Entertainment Inc the two are 6,724 KRW per share apart. That gap is exactly why we show both numbers side by side.
How much is YG Entertainment Inc worth?
The market values YG Entertainment Inc at about 785B KRW (market capitalisation, as of Nov 7, 2026). Per share that is 42,300 KRW; our models calculate a fair value of 49,024 KRW per share.
What do the bullish and bearish scenarios say about 122870?
Our models span a range for YG Entertainment Inc: cautious scenario 34,317 KRW, base 49,024 KRW, optimistic 63,732 KRW per share (as of Nov 7, 2026, price 42,300 KRW). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 122870?
YG Entertainment Inc trades at a price-to-earnings ratio of 23.0 (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 49,024 KRW is built from several models across several years. Other multiples: P/B 1.5, P/S 1.3, EV/EBITDA 6.4.
How solid is the balance sheet of YG Entertainment Inc (122870)?
Balance-sheet figures for YG Entertainment Inc (as of Nov 7, 2026): return on equity 7.7%, debt of 0.01 per unit of equity. They feed the Quality Score of 75/100, which measures business quality independently of the share price.
How far is 122870 from its 52-week high?
YG Entertainment Inc trades at 42,300 KRW, about 47% below its 52-week high of 79,130 KRW and 14% above the low of 37,050 KRW (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of 49,024 KRW is for.
Which stocks are comparable to YG Entertainment Inc?
From the same area (Communication Services) we also value Netflix, Inc, The Walt Disney Company, Live Nation Entertainment, Inc, TKO 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 YG Entertainment Inc stock attractive at the current price?
The data as of Nov 7, 2026: price 42,300 KRW, calculated fair value 49,024 KRW (+16%), Quality Score 75/100, 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 122870 calculated?
We run YG Entertainment Inc through 26 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of 49,024 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. YG Entertainment Inc currently trades 14% 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 YG Entertainment Inc (122870)?
The closing price on Nov 6, 2026 was 42,300 KRW. Our model-based fair value is 49,024 KRW, about +16% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with YG Entertainment Inc right now?
A fairly wide model range (34,317 KRW to 63,732 KRW) leaves room in how you read the outcome. 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 YG Entertainment Inc
How large is the market capitalisation of YG Entertainment Inc (122870)?
The market capitalisation of YG Entertainment Inc is 785B KRW (≈ $580M). 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 YG Entertainment Inc (122870)?
The price-to-sales ratio of YG Entertainment Inc is 1.27 (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 YG Entertainment Inc (122870)?
Earnings per share at YG Entertainment Inc are 1,826 KRW (price ÷ EPS = P/E 23.0). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of YG Entertainment Inc (122870)?
The dividend yield of YG Entertainment Inc is 0.7% (payout 16.4%). 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 YG Entertainment Inc (122870)?
The net margin of YG Entertainment Inc is 5.5% (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 YG Entertainment Inc (122870)?
The return on equity (ROE) of YG Entertainment Inc is 7.7% (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 YG Entertainment Inc (122870)?
On an EBIT basis the return on assets of YG Entertainment Inc is 7.0% (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 YG Entertainment Inc (122870)?
The operating margin of YG Entertainment Inc is 7.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at YG Entertainment Inc (122870)?
Revenue at YG Entertainment Inc is growing +27.2% versus a year earlier (3y avg +11.7%). 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 YG Entertainment Inc (122870)?
Earnings per share at YG Entertainment Inc are growing −32.9% versus a year earlier. How much earnings per share grew versus a year earlier.
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Broad data
Nov 7, 2026