YG Entertainment Inc (122870) Fair Value & Analysis

Communication Services · KR · Market cap 712B KRW

A strong business, currently priced close to our fair value.

What matters now

• The price sits close to our fair value, market and models broadly agree here, little valuation tension.
• Our model range runs from 32,828 KRW (bear) to 54,713 KRW (bull), base 43,770 KRW. The closer the price sits to the lower half, the larger the margin of safety.
• Quality 76/100 (high quality) with medium evidence: read the verdict with care.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 22, 2026.

How to read this chart

60‑month range 29,895 KRW – 106,900 KRW · fair‑value band 32,828 KRW – 54,713 KRW · the 41,550 KRW price screens below the 43,770 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 22, 2026.

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Analysis

YG Entertainment Inc (122870) currently trades at 41,550 KRW, while our model-based Fair Value estimate is 43,770 KRW, implying the stock looks roughly 5.3% fairly valued today. The Quality Score stands at 76/100 (high quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, YG Entertainment Inc generated revenue of 592B KRW at a net margin of 6.2%. Revenue grew 46.9% year over year. It earns a return on equity of 8.4%. Fundamentals as of Jul 22, 2026

Our scenario range runs from 32,828 KRW (bear case) to 54,713 KRW (bull case); at 41,550 KRW, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 62% below its 52-week high and 7% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at -52% fair-value upside, at 5%, 122870 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: DCF Models (93,487 KRW) versus Asset-Based (18,552 KRW). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

YG Entertainment Inc. operates as an entertainment company in South Korea, Japan, and internationally. 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 …

Full company description

YG Entertainment Inc. operates as an entertainment company in South Korea, Japan, and internationally. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

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.

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Peer Group

Entertainment · 267 stocks

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.

Valuation Multiples vs Entertainment median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.