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Krafton Inc (259960) Fair Value & Analysis

Communication Services · KR · Market cap 10.8T KRW (≈ $7.6B) · ISIN KR7259960003

What is Krafton Inc really worth?

KI Krafton Inc 259960 · KO
Price216,500 KRW
Fair Value356,218 KRW
Upside+64.5%
Quality72/100

A solid business, trading 39% below our fair value of 356,218 KRW.

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Strengths

Healthy Growth (revenue 5y +14.8 %/yr)
Highly profitable · 23.0% net margin
Low debt · generates free cash flow
Ranks above peers (9/10)
Wide moat 73/100

Risks

!Evidence only medium, so the estimate is less certain
!Weak on dividend: 21 out of 100

For context

·1.03% dividend yield
Evidence: Medium Range 252,757 KRW – 471,251 KRW

Fair value as of: Aug 13, 2026

From 24 valuation models · updated 22 days ago

Fair value updated Aug 13, 2026, revised from 395,557 KRW to 356,218 KRW (−9.9%) since Jul 17, 2026. Share price −7.9% over the past month.

What runs behind every stock

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

What matters now

  • The rarer combination: high quality (72/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (252,757 KRW). The market is more pessimistic than our downside scenario.
  • A fairly wide model range (252,757 KRW to 471,251 KRW) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

562,225 KRW 145,266 KRW Fair Value 356,218 KRW Aug 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 145,266 KRW – 562,225 KRW · fair‑value band 252,757 KRW – 471,251 KRW · the 216,500 KRW price screens below the 356,218 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

Krafton Inc (259960) currently trades at 216,500 KRW, while our model-based Fair Value estimate is 356,218 KRW, implying the stock looks roughly 39.2% undervalued today. The Quality Score stands at 72/100 (solid quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of 505,892 KRW per share, and 22 of the 24 models we run sit above the 216,500 KRW price. Bear case: the Asset-Based group reads lowest at 104,613 KRW, and 2 of the 24 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Krafton Inc generated revenue of 3.8T KRW at a net margin of 23.0%. Revenue grew 56.9% year over year. It earns a return on equity of 12.0%. Fundamentals as of Aug 13, 2026

Our scenario range runs from 252,757 KRW (bear case) to 471,251 KRW (bull case); at 216,500 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 43% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at −46% fair-value upside, at 65%, 259960 screens cheaper 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 329,988 KRW 615,374 KRW 1,363,200 KRW 74
EPV 209,612 KRW 244,271 KRW 275,079 KRW 74
Growth DCF 322,077 KRW 667,600 KRW 1,245,075 KRW 74
All 24 models by family
DCF Models
FCF DCF 329,988 KRW 615,374 KRW 1,363,200 KRW 74
Owner Earnings 274,757 KRW 563,327 KRW 1,144,491 KRW 71
5Y Revenue Exit 217,203 KRW 377,985 KRW 603,013 KRW 71
5Y EBITDA Exit 267,394 KRW 489,583 KRW 782,045 KRW 73
5Y P/E Exit 287,373 KRW 534,005 KRW 833,371 KRW 69
10Y Revenue Exit 243,936 KRW 418,457 KRW 705,013 KRW 65
10Y EBITDA Exit 285,170 KRW 505,892 KRW 870,257 KRW 66
10Y P/E Exit 299,156 KRW 540,696 KRW 917,629 KRW 62
Earnings-Based
Graham-Dodd 110,793 KRW 651,258 KRW 906,764 KRW 63
Lynch FV 184,649 KRW 263,784 KRW 342,920 KRW 61
PEG = 1.0 184,649 KRW 263,784 KRW 342,920 KRW 57
EPV 209,612 KRW 244,271 KRW 275,079 KRW 74
Multiples
P/E Multiple 268,835 KRW 358,447 KRW 448,059 KRW 63
P/S Multiple 193,631 KRW 258,175 KRW 322,718 KRW 58
P/B Multiple 207,736 KRW 276,982 KRW 346,227 KRW 55
EV/EBIT 293,783 KRW 387,307 KRW 480,831 KRW 66
EV/EBITDA 252,757 KRW 332,606 KRW 412,455 KRW 67
EV/Revenue 168,115 KRW 234,502 KRW 300,890 KRW 54
Asset-Based
NCAV (Graham) 78,069 KRW 104,613 KRW 156,139 KRW 54
Growth DCF
Growth DCF 322,077 KRW 667,600 KRW 1,245,075 KRW 74
Rev-Margin DCF 217,203 KRW 373,197 KRW 591,325 KRW 71
Economic Profit
Residual Income 141,039 KRW 160,775 KRW 303,957 KRW 68
ROIC Compounder 243,536 KRW 359,012 KRW 475,791 KRW 71
Growth Earnings
Growth-Adj P/E 276,890 KRW 395,557 KRW 514,224 KRW 67

Widest divergence: DCF Models (505,892 KRW) versus Asset-Based (104,613 KRW). Highest evidence: FCF DCF (74).

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Key figures & financial health

P/S ratio 3.04 TTM
Dividend yield 1.0%
Net margin 22.1% FY2025
Return on equity 12.0% TTM
Return on assets (EBIT) 12.4% avg 5y
Operating margin 41.0% TTM
More key figures
Growth
Revenue (TTM) 3.8T KRW TTM
Revenue growth (YoY) +56.9% 3y avg +21.5%
EPS growth (YoY) +43.0%
Balance sheet & cash flow
Free cash flow 943B KRW FY2025

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

Quality Score breakdown

Overall quality 72/100

Of which business quality 71 · Market factors (momentum, volatility) 26

Profitability 54
Margins and returns on capital today
Quality Growth 40
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 84
Balance sheet, leverage, solvency risk
Investment 53
Disciplined investing over empire-building
Low Volatility 57
Calm price path (market factor)
Momentum 18
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 99
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

KRAFTON, Inc. engages in the software development and related ancillary businesses in Asia, Korea, the United States, Europe, and internationally. The company offers PC, mobile, console, and other games.

Full company description

KRAFTON, Inc. engages in the software development and related ancillary businesses in Asia, Korea, the United States, Europe, and internationally. The company offers PC, mobile, console, and other games. It is also involved in development and distribution of mobile games and applications, and game software business; consulting advisory and investment activities; production of video contents; and development and servicing of games. The company was formerly known as Bluehole Studio Inc. and changed its name to KRAFTON, Inc. in November 2018. KRAFTON, Inc. was incorporated in 2007 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

Krafton Inc reported revenue of 3.3T KRW in FY2025 versus 1.9T KRW in FY2021, a compound +15.2%/yr. Reported net income was 735B KRW in FY2025, compounding +9.0%/yr from FY2021.

Growth Quality 95/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
3.3T KRW
Latest YoY
+22.8%
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.
+21.5%
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.
+14.8%
Avg. revenue growth/yr (7Y) 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.
+16.8%
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.
+5.0% (4.0 + 1.0)
Revenue +15.2%/yr
FY21 1.9T KRW
FY22 1.9T KRW
FY23 1.9T KRW
FY24 2.7T KRW
FY25 3.3T KRW
Net income +9.0%/yr
FY21 520B KRW
FY22 500B KRW
FY23 595B KRW
FY24 1.3T KRW
FY25 735B KRW

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Cite: Fair Value Calculator (2026). "Krafton Inc Fair Value". https://www.fairvalue-calculator.com/stock/259960

Peer Group

Electronic Gaming & Multimedia · 150 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 72 · Top 25%
Fair Value upside +65% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 8% · Above median
Net margin (TTM) 23% · Top 25%
Operating margin (TTM) 41% · Top 25%
Revenue growth 57% · Top 25%
Dividend yield (TTM) 1.0% · Below median

Valuation Multiples vs Electronic Gaming & Multimedia median · lower = cheaper

P/FCF 0.0× · Cheaper than 75% of peers

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
VALUE100 · sector 16
FUTURE100 · sector 6
PAST48 · sector 18
HEALTH100 · sector 100
DIVIDEND21 · sector 55

Insider activity: 45/100

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 Electronic Gaming & Multimedia stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Konami Group KNM £221.05 £71.97 −67%
NetEase, Inc 9999 HK$188.80 HK$263.39 +40%
Electronic Arts Inc EA $209.70 $76.57 −63%
Take-Two Interactive Software, Inc TTWO $233.00 $60.20 −74%
Roblox Corporation RBLX $41.29 $21.20 −49%
Zhejiang Century Huatong Group 002602 ¥13.90 ¥14.68 +6%
Giant Network Group 002558 ¥28.57 ¥15.50 −46%
International Games System Co 3293 762.00 TWD 568.16 TWD −25%
CD Projekt S.A CDR 234.40 PLN 64.48 PLN −72%
37 Interactive Entertainment Network Technology Group 002555 ¥19.21 ¥22.29 +16%

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Frequently asked questions

Is Krafton Inc (259960) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 356,218 KRW versus a price of 216,500 KRW, about +65% upside (undervalued).
What is the fair value of 259960?
Our model-based fair value for Krafton Inc is 356,218 KRW (as of Aug 13, 2026), built from audited fundamentals. The current price: 216,500 KRW.
What is the quality score of 259960?
Krafton Inc has a Quality Score of 72/100. 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 Krafton Inc (259960)?
Krafton Inc reported trailing-twelve-month revenue of about 3.8T KRW (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 259960?
The net profit margin of Krafton Inc is about 23.0%, meaning it keeps roughly 23.0% of revenue as net income. Based on the latest reported figures.
Does Krafton Inc pay a dividend?
Krafton Inc currently shows a dividend yield of about 1.03% relative to its recent price (as of Aug 13, 2026).
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