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FNC ENTERTAINMENT Co (173940) Fair Value & Analysis

Communication Services · KR · Market cap 31.6B KRW

FE FNC ENTERTAINMENT Co 173940 · KQ
Price2,315 KRW
Fair Value3,752 KRW
Upside+62.1%
Quality41/100
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Expensive Growth
Loss-making · -5.2% net margin
Low debt · negative free cash flow
Mixed vs. peers (4/8)
Narrow moat 16/100
Evidence: Low Range 2,807 KRW – 4,696 KRW Share as image

Fair value as of: Jul 20, 2026

From 4 valuation models · updated 21 days ago

Share price +4.3% over the past month.

Below-average quality, screening 62% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (41/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (2,807 KRW). The market is more pessimistic than our downside scenario.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
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Price vs Fair Value (5 years)

11,300 KRW 2,010 KRW Fair Value 3,752 KRW Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range 2,010 KRW – 11,300 KRW · fair‑value band 2,807 KRW – 4,696 KRW · the 2,315 KRW price screens below the 3,752 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

Full chart & analysis →

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Analysis

FNC ENTERTAINMENT Co (173940) currently trades at 2,315 KRW, while our model-based Fair Value estimate is 3,752 KRW, implying the stock looks roughly 62.1% undervalued today. The Quality Score stands at 41/100 (below-average 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: low), always confirm before acting.

Over the trailing twelve months, FNC ENTERTAINMENT Co generated revenue of 118B KRW at a net margin of -5.2%. Revenue grew 139.9% year over year. It earns a return on equity of -24.7%. Net debt stands at 394M KRW. Fundamentals as of Jul 20, 2026

Our scenario range runs from 2,807 KRW (bear case) to 4,696 KRW (bull case); at 2,315 KRW, the current price sits below 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 55% below its 52-week high and 5% 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 62%, 173940 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.

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. Evidence
Highest evidence
Gordon GGM 1,465 KRW 2,750 KRW 4,528 KRW 70
DDM Multi-Stage 1,465 KRW 2,218 KRW 3,035 KRW 61
EV/EBITDA 4,252 KRW 5,197 KRW 6,141 KRW 54
All 4 models by family
Dividend Discount
Gordon GGM 1,465 KRW 2,750 KRW 4,528 KRW 70
DDM Multi-Stage 1,465 KRW 2,218 KRW 3,035 KRW 61
Multiples
EV/EBITDA 4,252 KRW 5,197 KRW 6,141 KRW 54
Asset-Based
NCAV (Graham) 651.53 KRW 873.05 KRW 1,303 KRW 50

Widest divergence: Multiples (5,197 KRW) versus Asset-Based (873.05 KRW). Highest evidence: Gordon GGM (70).

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Key figures & financial health

Revenue (TTM) 118B KRW
Revenue growth (YoY) +140%
Net margin -5.2%
Return on equity -24.7%
Free cash flow −18.8B KRW FY2025
Operating margin 3.0%
More key figures
Net debt 394M KRW FY2021

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 41/100

Of which business quality 39 · Market factors (momentum, volatility) 19

Profitability 18
Margins and returns on capital today
Quality Growth 59
Are margins and returns improving?
Cashflow 2
Earnings quality: real cash, not paper profit
Fin. Strength 38
Balance sheet, leverage, solvency risk
Investment 74
Disciplined investing over empire-building
Low Volatility 61
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 5
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

FNC ENTERTAINMENT Co., Ltd., together with its subsidiaries, engages in the planning, production, distribution, and management of music in South Korea, Japan, the United States, and internationally. It operates through the Entertainment Business and Media Content Production Business segments.

Full company description

FNC ENTERTAINMENT Co., Ltd., together with its subsidiaries, engages in the planning, production, distribution, and management of music in South Korea, Japan, the United States, and internationally. It operates through the Entertainment Business and Media Content Production Business segments. The company is involved in talent management and casting; production of concerts, albums, dramas, films, and music for dramas and movies; and merchandising activities. FNC ENTERTAINMENT Co., Ltd. was founded in 2006 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

FNC ENTERTAINMENT Co reported revenue of 102B KRW in FY2025 versus 74.2B KRW in FY2021, a compound +8.4%/yr. Reported net income was −11.8B KRW in FY2025.

Growth Quality 28/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
102B KRW
Latest YoY
+18.7%
Avg. growth/yr (3Y) 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.
+15.9%
Avg. growth/yr (5Y) 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.
+7.2%
Avg. growth/yr (11Y) 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.
+5.0%
Revenue +8.4%/yr
FY21 74.2B KRW
FY22 65.8B KRW
FY23 90.1B KRW
FY24 86.2B KRW
FY25 102B KRW
Net income
FY21 −9.3B KRW
FY22 −17.6B KRW
FY23 −8.3B KRW
FY24 −6.6B KRW
FY25 −11.8B KRW

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Cite: Fair Value Calculator (2026). "FNC ENTERTAINMENT Co Fair Value". https://www.fairvalue-calculator.com/stock/173940

Peer Group

Entertainment · 265 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.

Quality Score 41 · Below median
Fair Value upside +62% · Top 25%
Return on assets 2% · Above median
Net margin (TTM) -5% · Below median
Operating margin (TTM) 3% · Above median
Revenue growth 140% · Top 25%
Debt / equity 0.14× · Higher than median

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.

VALUE 100 · sector 6
FUTURE 100 · sector 10
PAST 0 · sector 0
HEALTH 93 · sector 97
DIVIDEND 0 · sector 44

Values & ESG

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

None of the checked exposures detected

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

Similar stocks

10 more Entertainment stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
Netflix, Inc ZNFL C$6.77 C$2.96 -56%
The Walt Disney Company DIS $96.30 $89.55 -7%
Warner Bros. Discovery, Inc WBD $26.87 $9.13 -66%
Live Nation Entertainment, Inc LYV $178.44 $46.89 -74%
Universal Music Group UMG €18.91 €14.78 -22%
TKO Group TKO $184.40 $22.16 -88%
Empresas Cablevisión, S.A. CABLECPO 55.00 MXN 60.49 MXN +10%
Beijing Enlight Media Co 300251 ¥11.77 ¥10.97 -7%
PT MNC Digital Entertainment Tbk, MSIN 456.00 IDR 221.09 IDR -52%
Prime Focus Limited PFOCUS ₹298.25 ₹63.45 -79%

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Frequently asked questions

Is FNC ENTERTAINMENT Co (173940) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of 3,752 KRW versus a price of 2,315 KRW, about +62% (undervalued).
What is the fair value of 173940?
Our model-based fair value for FNC ENTERTAINMENT Co is 3,752 KRW (as of Jul 20, 2026), built from audited fundamentals. The current price is 2,315 KRW.
What is the quality score of 173940?
FNC ENTERTAINMENT Co has a Quality Score of 41/100. 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 revenue of FNC ENTERTAINMENT Co (173940)?
FNC ENTERTAINMENT Co reported trailing-twelve-month revenue of about 118B KRW (latest available figure, as of Jul 20, 2026).
What is the net profit margin of 173940?
The net profit margin of FNC ENTERTAINMENT Co is about -5.2%, meaning it is currently running at a net loss. Based on the latest reported figures.

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.

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