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Kakao Corp (035720) Fair Value & Analysis

Communication Services · KR · Market cap 15.8T KRW (≈ $11.1B) · ISIN KR7035720002

What is Kakao Corp really worth?

KC Kakao Corp 035720 · KO
Price36,200 KRW
Fair Value24,536 KRW
Upside−32.2%
Quality54/100

A solid business, but trading 48% above our fair value of 24,536 KRW.

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Strengths

Low debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y +14.3 %/yr)
!Thin margins · 5.9% net margin
!Mixed vs. peers (6/11)
!Narrow moat 38/100
!Evidence only medium, so the estimate is less certain
!Weak on past: 15 out of 100
!Weak on dividend: 4 out of 100

For context

·0.21% dividend yield
Evidence: Medium Range 18,829 KRW – 30,671 KRW

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Share price −5.0% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (30,671 KRW). The favourable scenario is already priced in.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

548,426 KRW 32,705 KRW Fair Value 24,536 KRW Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 32,705 KRW – 548,426 KRW · fair‑value band 18,829 KRW – 30,671 KRW · the 36,200 KRW price screens above the 24,536 KRW fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Kakao Corp (035720) currently trades at 36,200 KRW, while our model-based Fair Value estimate is 24,536 KRW, implying the stock looks roughly 47.5% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of 58,765 KRW per share, and 13 of the 26 models we run sit above the 36,200 KRW price. Bear case: the Asset-Based group reads lowest at 17,144 KRW, and 13 of the 26 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Kakao Corp generated revenue of 8.3T KRW at a net margin of 5.9%. Revenue grew 11.1% year over year. It earns a return on equity of 3.9%. Fundamentals as of Aug 13, 2026

Our scenario range runs from 18,829 KRW (bear case) to 30,671 KRW (bull case); at 36,200 KRW, 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 49% below its 52-week high, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −6% fair-value upside, at −32%, 035720 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced 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. Every input is real reported data, nothing guessed.

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
FCF DCF 42,663 KRW 63,860 KRW 127,998 KRW 76
Residual Income 19,482 KRW 19,434 KRW 18,121 KRW 76
Growth DCF 41,217 KRW 70,622 KRW 130,100 KRW 75
All 26 models by family
DCF Models
FCF DCF 42,663 KRW 63,860 KRW 127,998 KRW 76
Owner Earnings 39,301 KRW 75,680 KRW 155,465 KRW 71
5Y Revenue Exit 32,129 KRW 47,455 KRW 77,356 KRW 71
5Y EBITDA Exit 43,719 KRW 72,319 KRW 125,121 KRW 73
5Y P/E Exit 33,710 KRW 55,012 KRW 82,296 KRW 70
10Y Revenue Exit 34,444 KRW 55,644 KRW 78,258 KRW 66
10Y EBITDA Exit 43,494 KRW 78,518 KRW 143,557 KRW 65
10Y P/E Exit 36,247 KRW 58,765 KRW 97,066 KRW 62
Earnings-Based
Graham-Dodd 7,584 KRW 52,890 KRW 74,223 KRW 63
Lynch FV 16,246 KRW 23,209 KRW 30,172 KRW 61
PEG = 1.0 16,246 KRW 23,209 KRW 30,172 KRW 57
EPV 20,539 KRW 22,008 KRW 23,314 KRW 74
Dividend Discount
Gordon GGM 850.11 KRW 1,856 KRW 3,123 KRW 65
DDM Multi-Stage 850.11 KRW 1,520 KRW 1,934 KRW 66
Multiples
P/E Multiple 18,402 KRW 24,536 KRW 30,671 KRW 63
P/S Multiple 14,220 KRW 18,960 KRW 23,700 KRW 58
P/B Multiple 14,220 KRW 18,960 KRW 23,700 KRW 55
EV/EBIT 32,193 KRW 38,852 KRW 45,511 KRW 66
EV/EBITDA 44,358 KRW 55,072 KRW 65,786 KRW 67
EV/Revenue 27,365 KRW 33,858 KRW 40,350 KRW 54
Asset-Based
NCAV (Graham) 12,794 KRW 17,144 KRW 25,588 KRW 54
Growth DCF
Growth DCF 41,217 KRW 70,622 KRW 130,100 KRW 75
Rev-Margin DCF 32,129 KRW 50,287 KRW 77,636 KRW 72
Economic Profit
Residual Income 19,482 KRW 19,434 KRW 18,121 KRW 76
ROIC Compounder 20,539 KRW 22,008 KRW 23,314 KRW 72
Growth Earnings
Growth-Adj P/E 22,402 KRW 32,003 KRW 41,603 KRW 67

Widest divergence: DCF Models (58,765 KRW) versus Dividend Discount (1,520 KRW). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/S ratio 1.91 TTM
Dividend yield 0.2%
Net margin 6.1% FY2025
Return on equity 3.9% TTM
Return on assets (EBIT) 2.3% avg 5y
Operating margin 10.9% TTM
More key figures
Growth
Revenue (TTM) 8.3T KRW TTM
Revenue growth (YoY) +11.1% 3y avg +6.0%
EPS growth (YoY) −0.3%
Balance sheet & cash flow
Free cash flow 790B KRW FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 54/100

Of which business quality 54 · Market factors (momentum, volatility) 17

Profitability 30
Margins and returns on capital today
Quality Growth 38
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 53
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 37
Calm price path (market factor)
Momentum 11
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.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Kakao Corp. operates mobile and online platforms in South Korea. The company offers Kakao Pay, a financial service solution; Kakao Bank, a banking solution; Kakao Mobility for mobility services; Kakao Style, a lifestyle solution; Kakao Entertainment, a solution for entertainment industry; Kakao Games, a solution for the gaming industry; Kakao piccoma, a …

Full company description

Kakao Corp. operates mobile and online platforms in South Korea. The company offers Kakao Pay, a financial service solution; Kakao Bank, a banking solution; Kakao Mobility for mobility services; Kakao Style, a lifestyle solution; Kakao Entertainment, a solution for entertainment industry; Kakao Games, a solution for the gaming industry; Kakao piccoma, a content service platform; Kakao Brain, an artificial intelligence solution; Kakao Enterprise, a cloud service solution; and Kakao Healthcare, a mobile-based personal healthcare solution. It also provides Linkagelab, a workplace for individuals with disabilities; investment services in start-ups under the Kakao Investment name; and various solutions under the KakaoTalk, Kakao Business Service, Daum, Kakao Ventures, and Kakao Map names. The company was formerly known as Daum Kakao Corp. and changed its name to Kakao Corp. in October 2015. Kakao Corp. was founded in 1995 and is headquartered in Jeju-si, South Korea.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Kakao Corp reported revenue of 8.1T KRW in FY2025 versus 6.1T KRW in FY2021, a compound +7.2%/yr. Reported net income was 491B KRW in FY2025, compounding −22.9%/yr from FY2021.

Growth Quality 82/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
8.1T KRW
Latest YoY
+3.0%
Avg. revenue 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.
+6.0%
Avg. revenue 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.
+14.3%
Avg. revenue growth/yr (24Y) 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.
+20.6%
Value creation/yr (5Y, in KRW) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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.
−8.8% (−9.0 + 0.2)
Revenue +7.2%/yr
FY21 6.1T KRW
FY22 6.8T KRW
FY23 7.6T KRW
FY24 7.9T KRW
FY25 8.1T KRW
Net income −22.9%/yr
FY21 1.4T KRW
FY22 1.4T KRW
FY23 −1.0T KRW
FY24 55.3B KRW
FY25 491B KRW

035720 screens 48% overvalued. Compare with Alphabet Inc →

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Cite: Fair Value Calculator (2026). "Kakao Corp Fair Value". https://www.fairvalue-calculator.com/stock/035720

Peer Group

Internet Content & Information · 153 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 54 · Below median
Fair Value upside −32% · Below median
Return on equity (TTM) 4% · Above median
Return on assets 2% · Above median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 11% · Above median
Dividend yield (TTM) 0.2% · Bottom 25%
Debt / equity 0.09× · Higher than median

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

P/FCF 0.0× · Cheaper than 75% of peers
PEG 1.20× · Pricier than median

Strength profile in five axes (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.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE56 · sector 31
PAST15 · sector 9
HEALTH96 · sector 98
DIVIDEND4 · sector 36

VALUE 0: the price sits above our fair-value range.

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

Similar stocks

10 more Internet Content & Information stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

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Meta Platforms, Inc META $571.10 $534.91 −6%
Tencent Holdings 0700 HK$455.20 HK$449.03 −1%
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Baidu, Inc 89888 HK$79.10 HK$28.84 −64%
Kuaishou Technology, an investment holding company, 81024 HK$34.50 HK$63.28 +83%
NAVER Corporation 035420 213,500 KRW 231,585 KRW +8%
Tencent Music Entertainment Group 1698 HK$35.14 HK$66.77 +90%
REA Group REA A$177.42 A$88.53 −50%

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Frequently asked questions

Is Kakao Corp (035720) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 24,536 KRW versus a price of 36,200 KRW, about −32% upside (overvalued).
What is the fair value of 035720?
Our model-based fair value for Kakao Corp is 24,536 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 36,200 KRW.
What is the quality score of 035720?
Kakao Corp has a Quality Score of 54/100. 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 Kakao Corp (035720)?
Kakao Corp reported trailing-twelve-month revenue of about 8.3T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 035720?
The net profit margin of Kakao Corp is about 5.9%, meaning it keeps roughly 5.9% of revenue as net income. Based on the latest reported figures.
Does Kakao Corp pay a dividend?
Kakao Corp currently shows a dividend yield of about 0.21% relative to its recent price (as of Aug 13, 2026).
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