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WEBTOON Entertainment Inc (WBTN) Fair Value & Analysis

Communication Services · US · Market cap $1.5B

WE WEBTOON Entertainment Inc logo WEBTOON Entertainment Inc WBTN · US
Price$8.93
Fair Value$3.00
Upside-66.4%
Quality51/100
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Expensive Growth
Loss-making · -24.2% net margin
negative free cash flow
Trails peers (2/9)
Narrow moat 16/100
Evidence: Low Range $1.98 – $3.75 Share as image

Fair value as of: Jul 18, 2026

From 1 valuation models · updated 22 days ago

Share price −21.9% over the past month.

A solid business, but screening 66% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case ($3.75). The favourable scenario is already priced in.
  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range ($1.98 to $3.75) leaves room in how you read the outcome.
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Price vs Fair Value (2 years)

$23.85 $7.02 Fair Value $3.00 Jun 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

25‑month range $7.02 – $23.85 · fair‑value band $1.98 – $3.75 · the $8.93 price screens above the $3.00 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 18, 2026.

Full chart & analysis →

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Analysis

WEBTOON Entertainment Inc (WBTN) currently trades at $8.93, while our model-based Fair Value estimate is $3.00, implying the stock looks roughly 66.4% overvalued today. The Quality Score stands at 51/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: low).

Over the trailing twelve months, WEBTOON Entertainment Inc generated revenue of $1.4B at a net margin of -24.2%. Revenue declined 1.5% year over year. It earns a return on equity of -25.8%. The balance sheet holds a net cash position of $558M. Fundamentals as of Jul 18, 2026

Our scenario range runs from $1.98 (bear case) to $3.75 (bull case); at $8.93, the current price sits above 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 60% below its 52-week high and 9% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 2% fair-value upside, at -66%, WBTN screens richer 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 BearBaseBull Evidence
Highest evidence
NCAV (Graham) $4.33 $5.80 $8.65 50
All 1 models by family
Asset-Based
NCAV (Graham) $4.33 $5.80 $8.65 50

Key figures & financial health

Revenue (TTM) $1.4B
Revenue growth (YoY) -1.5%
Net margin -24.2%
Return on equity -25.8%
Free cash flow −$6.7M FY2025
Operating margin -2.5%
More key figures
EPS (TTM) $-2.55
Net cash $558M FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 51/100

Of which business quality 51 · Market factors (momentum, volatility) 16

Profitability 20
Margins and returns on capital today
Quality Growth 31
Are margins and returns improving?
Cashflow 11
Earnings quality: real cash, not paper profit
Fin. Strength 97
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 25
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 71
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

WEBTOON Entertainment Inc. operates a storytelling platform in the United States, Korea, Japan, and internationally. Its platform allows a community of creators and users to discover, create, and share new content.

Full company description

WEBTOON Entertainment Inc. operates a storytelling platform in the United States, Korea, Japan, and internationally. Its platform allows a community of creators and users to discover, create, and share new content. The company's platform offers stories primarily in two ways, including web-comics, a graphical comic-like medium; and web-novel platforms, optimized for reading serialized text-based content. It also provides hosting services for web-comics through web and mobile applications, and paid content, advertising and IP adaptations. The company was founded in 2005 and is headquartered in Los Angeles, California. WEBTOON Entertainment Inc. is a subsidiary of NAVER Corporation.

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

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

WEBTOON Entertainment Inc reported revenue of $1.4B in FY2025 versus $1.1B in FY2022, a compound +8.6%/yr. Reported net income was −$346M in FY2025.

Growth Quality 31/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$1.4B
Latest YoY
+2.5%
Avg. growth/yr (3Y)
+8.6%
Revenue +8.6%/yr
FY22 $1.1B
FY23 $1.3B
FY24 $1.3B
FY25 $1.4B
Net income
FY22 −$130M
FY23 −$116M
FY24 −$144M
FY25 −$346M

WBTN screens 66% overvalued. Compare with Alphabet Inc →

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Cite: Fair Value Calculator (2026). "WEBTOON Entertainment Inc Fair Value". https://www.fairvalue-calculator.com/stock/WBTN

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Internet Content & Information · 151 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 51 · Below median
Fair Value upside −66% · Bottom 25%
Return on assets -2% · Below median
Net margin (TTM) -24% · Bottom 25%
Operating margin (TTM) -3% · Below median
Revenue growth -2% · Bottom 25%

Valuation Multiples vs Internet Content & Information median · lower = cheaper

P/B 1.24× · Cheaper than median
P/S (TTM) 1.06× · Cheaper than median

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 Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Jul 18, 2026).

Stock Price Fair Value vs Fair Value
Alphabet Inc GOOGL $354.46 $145.14 -59%
Meta Platforms, Inc META $669.21 $534.91 -20%
Tencent Holdings 0700 HK$460.20 HK$467.50 +2%
Spotify Technology S.A SPOT $485.38 $209.56 -57%
Baidu, Inc BIDU $113.30 $451.51 +299%
Reddit, Inc RDDT $195.34 $39.59 -80%
Kuaishou Technology, an investment holding company, 1024 HK$44.70 HK$101.03 +126%
NAVER Corporation 035420 191,300 KRW 231,585 KRW +21%
Tencent Music Entertainment Group 1698 HK$34.74 HK$65.78 +89%
REA Group REA A$149.14 A$88.53 -41%

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Frequently asked questions

Is WEBTOON Entertainment Inc (WBTN) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of $3.00 versus a price of $8.93, about −66% (overvalued).
What is the fair value of WBTN?
Our model-based fair value for WEBTOON Entertainment Inc is $3.00 (as of Jul 18, 2026), built from audited fundamentals. The current price is $8.93.
What is the quality score of WBTN?
WEBTOON Entertainment Inc has a Quality Score of 51/100. 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 WEBTOON Entertainment Inc (WBTN)?
WEBTOON Entertainment Inc reported trailing-twelve-month revenue of about $1.4B (latest available figure, as of Jul 18, 2026).
What is the net profit margin of WBTN?
The net profit margin of WEBTOON Entertainment Inc is about -24.2%, 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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