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Chai Communication Co (351870) Fair Value & Analysis

Communication Services · KR · Market cap 17.9B KRW

CC Chai Communication Co 351870 · KQ
Price1,728 KRW
Fair Value1,867 KRW
Upside+8.1%
Quality38/100
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Expensive Growth
Thin margins · 0.2% net margin
Moderate debt · negative free cash flow
Mixed vs. peers (5/9)
Narrow moat 24/100
Evidence: High Range 1,372 KRW – 2,959 KRW Share as image

Fair value as of: Jul 21, 2026

From 13 valuation models · updated 20 days ago

Share price −5.4% over the past month.

Below-average quality, 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.
  • A fairly wide model range (1,372 KRW to 2,959 KRW) leaves room in how you read the outcome.
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Price vs Fair Value (22 months)

22,100 KRW 1,575 KRW Fair Value 1,867 KRW Sep 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

22‑month range 1,575 KRW – 22,100 KRW · fair‑value band 1,372 KRW – 2,959 KRW · the 1,728 KRW price screens below the 1,867 KRW fair value. Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Chai Communication Co (351870) currently trades at 1,728 KRW, while our model-based Fair Value estimate is 1,867 KRW, implying the stock looks roughly 8.1% fairly valued today. The Quality Score stands at 38/100 (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: high), always confirm before acting.

Over the trailing twelve months, Chai Communication Co generated revenue of 74.4B KRW at a net margin of 0.2%. Revenue grew 71.0% year over year. It earns a return on equity of 2.9%. Net debt stands at 50.2B KRW. Fundamentals as of Jul 21, 2026

Our scenario range runs from 1,372 KRW (bear case) to 2,959 KRW (bull case); at 1,728 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. For context, the median of 10 Communication Services peers we cover trades at -1% fair-value upside, at 8%, 351870 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
Growth-Adj P/E 1,484 KRW 2,120 KRW 2,756 KRW 68
P/E Multiple 1,775 KRW 2,367 KRW 2,959 KRW 63
Residual Income 3,406 KRW 3,247 KRW 2,599 KRW 61
All 13 models by family
DCF Models
Owner Earnings 844.82 KRW 3,749 KRW 31
Earnings-Based
Graham-Dodd 731.65 KRW 2,384 KRW 3,185 KRW 54
Lynch FV 533.24 KRW 761.78 KRW 990.31 KRW 50
PEG = 1.0 533.24 KRW 761.78 KRW 990.31 KRW 46
Multiples
P/E Multiple 1,775 KRW 2,367 KRW 2,959 KRW 63
P/S Multiple 1,372 KRW 1,829 KRW 2,286 KRW 58
P/B Multiple 1,372 KRW 1,829 KRW 2,286 KRW 55
EV/EBIT 500.81 KRW 2,092 KRW 3,684 KRW 53
EV/EBITDA 1,900 KRW 3,958 KRW 6,016 KRW 54
EV/Revenue 898.71 KRW 2,451 KRW 43
Asset-Based
NCAV (Graham) 2,405 KRW 3,222 KRW 4,809 KRW 50
Economic Profit
Residual Income 3,406 KRW 3,247 KRW 2,599 KRW 61
Growth Earnings
Growth-Adj P/E 1,484 KRW 2,120 KRW 2,756 KRW 68

Widest divergence: Economic Profit (3,247 KRW) versus Earnings-Based (761.78 KRW). Highest evidence: Growth-Adj P/E (68).

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Key figures & financial health

Revenue (TTM) 74.4B KRW
Revenue growth (YoY) +71.0%
Net margin 0.2%
Return on equity 2.9%
Free cash flow −94.0M KRW FY2025
Operating margin -4.7%
More key figures
Net debt 50.2B KRW FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 38/100

Of which business quality 39 · Market factors (momentum, volatility) 18

Profitability 31
Margins and returns on capital today
Quality Growth 57
Are margins and returns improving?
Cashflow 17
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 60
Calm price path (market factor)
Momentum 0
Price trend over the last 3–12 months (market factor)
52W Momentum 2
Distance to the 52-week high (market factor)
Net Issuance 81
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

Chai Communication Co., Ltd. engages in the advertising agency business in South Korea. The company offers various advertising solutions and services, including ATL, AI, application, BTL, brand film, banner advertising, creativity, contents, campaigns, consulting, DA, digital journey, design, e CRM, event, feed contents, goods, growth hacking.

Full company description

Chai Communication Co., Ltd. engages in the advertising agency business in South Korea. The company offers various advertising solutions and services, including ATL, AI, application, BTL, brand film, banner advertising, creativity, contents, campaigns, consulting, DA, digital journey, design, e CRM, event, feed contents, goods, growth hacking. human-centric, HTML, interactive advertising, and identity. It also provides keyword marketing, log analysis, media-mix, metaverse, mobile, OOH, owned media, organic traffic, pop-up, promotion, print, performance, rich media advertising, retargeting, SMO, social marketing, SEO, TVC, tracking, targeting advertising, tech, UI, UX, viral film, virtual, website, and ZUA. The company was founded in 2004 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

Chai Communication Co reported revenue of 66.5B KRW in FY2025 versus 46.5B KRW in FY2021, a compound +9.4%/yr. Reported net income was 1.2B KRW in FY2025, compounding −31.9%/yr from FY2021.

Growth Quality 38/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
66.5B KRW
Latest YoY
+13.1%
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.
+5.5%
Revenue +9.4%/yr
FY21 46.5B KRW
FY22 56.6B KRW
FY23 56.4B KRW
FY24 58.8B KRW
FY25 66.5B KRW
Net income −31.9%/yr
FY21 5.6B KRW
FY22 6.1B KRW
FY23 7.3B KRW
FY24 −315M KRW
FY25 1.2B KRW

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Cite: Fair Value Calculator (2026). "Chai Communication Co Fair Value". https://www.fairvalue-calculator.com/stock/351870

Peer Group

Advertising Agencies · 199 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 38 · Bottom 25%
Fair Value upside +8% · Above median
Return on equity (TTM) 3% · Above median
Return on assets 1% · Above median
Net margin (TTM) 0% · Below median
Operating margin (TTM) -5% · Below median
Revenue growth 71% · Top 25%
Debt / equity 1.19× · Higher than 75% of peers

Valuation Multiples vs Advertising Agencies median · lower = cheaper

EV/EBITDA 7.3× · Cheaper 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 44 · sector 19
FUTURE 100 · sector 8
PAST 12 · sector 7
HEALTH 41 · sector 98
DIVIDEND 0 · sector 66

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 Advertising Agencies stocks, each showing price versus our Fair Value estimate (as of Jul 21, 2026).

Stock Price Fair Value vs Fair Value
AppLovin Corporation APP $506.98 $181.37 -64%
Publicis Groupe S.A PUB €87.16 €146.36 +68%
Omnicom Group OMC $80.75 $99.84 +24%
Focus Media Information Technology Co 002027 ¥5.00 ¥4.08 -18%
The Trade Desk, Inc TTD $19.37 $20.76 +7%
BlueFocus Intelligent Communications Group 300058 ¥13.81 ¥1.50 -89%
JCDecaux SE DEC €21.28 €20.99 -1%
WPP plc WPP $18.13 $18.56 +2%
Easy Click Worldwide Network Technology Co 301171 ¥28.85 ¥5.62 -81%
Magnite, Inc MGNI $19.91 $17.17 -14%

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Frequently asked questions

Is Chai Communication Co (351870) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of 1,867 KRW versus a price of 1,728 KRW, about +8% (fairly valued).
What is the fair value of 351870?
Our model-based fair value for Chai Communication Co is 1,867 KRW (as of Jul 21, 2026), built from audited fundamentals. The current price is 1,728 KRW.
What is the quality score of 351870?
Chai Communication Co has a Quality Score of 38/100. 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 Chai Communication Co (351870)?
Chai Communication Co reported trailing-twelve-month revenue of about 74.4B KRW (latest available figure, as of Jul 21, 2026).
What is the net profit margin of 351870?
The net profit margin of Chai Communication Co is about 0.2%, meaning it keeps roughly 0.2% of revenue as net income. 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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