Stock Deep Dive · 2026-07-21
Krafton (259960) closed at ₩234,500, up 5.39% on the day. Year-to-date return is -3.9%, sitting at 23% of its 52-week range. Next earnings: 2026-07-28 (in 6 days). Listed in Seoul — for USD-based investors, KRW moves add an FX layer on top of the stock’s local return.
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Close
₩234,500
+5.39% · YTD -3.9%
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Market Cap
₩10.58T
Electronic Gaming & Multimedia
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Forward P/E
9.3x
PER 12.1x
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52-wk Range
23%
High ₩356,000 · Low ₩199,300
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🔍 At a Glance
Krafton posted 56.9% YoY revenue growth with a robust 30.3% TTM operating margin, and trades at a modest forward PER of 9.3x and EV/EBITDA of 5.4x — cheap multiples versus its own earnings power. Yet the stock sits near the bottom of its 52-week range (23rd percentile), down nearly 4% YTD and 6.7% below its 60-day average, reflecting persistent investor skepticism about a business still overwhelmingly reliant on PUBG.
🏢 How It Makes Money
Krafton, the Seoul-based developer behind PUBG, generates most of its revenue from PC, mobile, and console games, supplemented by consulting, investment, and video content production. Its ₩3.82T TTM revenue and strong margins show the franchise’s durability, but the KOSDAQ/KOSPI-listed gaming sector broadly has lagged the KOSPI, and headlines flag “undervaluation” concerns even as fundamentals stay solid — a gap between earnings delivery and market sentiment that Korea-focused investors should note, alongside won-based FX exposure for USD investors.
📈 Quarterly Results — Is Business Growing?
| Quarter | Revenue | Op. Income | Net Income | Op. Margin |
|---|---|---|---|---|
| 25Q1 | ₩874.2B | ₩457.3B | ₩372.0B | 52.3% |
| 25Q2 | ₩662.0B | ₩246.1B | ₩15.2B | 37.2% |
| 25Q3 | ₩870.6B | ₩348.6B | ₩367.5B | 40.0% |
| 25Q4 | ₩919.7B | ₩2.5B | ₩-20.0B | 0.3% |
| 26Q1 | ₩1.37T | ₩561.6B | ₩514.8B | 40.9% |
Latest-quarter revenue up +56.9% versus the same quarter a year ago.
💡 Korea Market 101
⚖️ Valuation — Cheap or Expensive?
| Metric | Value | How to read it |
|---|---|---|
| P/E (trailing) | 12.1x | Price vs last 12 months’ earnings |
| P/E (forward) | 9.3x | Price vs next 12 months’ expected earnings — growth hopes baked in |
| P/S | 2.8x | Price vs revenue — for high-growth names with thin profits |
| P/B | 1.5x | Price vs book value — below 1x means priced under liquidation value |
| EV/EBITDA | 5.4x | Enterprise value (incl. debt) vs cash generation |
Peer comparison
| Name | Mkt Cap | P/E | Fwd P/E | P/S |
|---|---|---|---|---|
| KRAFTON | ₩10.58T | — | 9.3x | 2.8x |
| NC | ₩4.16T | — | 9.3x | 2.4x |
| Netmarble | ₩2.87T | — | 8.7x | 1.0x |
💡 Korea Market 101
🎯 Street Consensus
- Price target (mean): ₩363,217
- Target high / low: ₩415,000 / ₩297,000
- Implied upside: +54.9%
- Rating: Buy (1.6/5)
- Analysts covering: 23
- Next earnings: 2026-07-28
💡 Korea Market 101
📉 Price Action — Technical Check
| Indicator | Value | How to read it |
|---|---|---|
| RSI (14d) | 49.1 | Above 70 overbought · below 30 oversold |
| vs 60-day MA | -6.7% | Above/below the medium-term trend |
| vs 200-day MA | -7.3% | Above/below the long-term trend |
| Golden/death cross | 50-day below 200-day (bearish alignment) | 50-day MA crossing above (golden) or below (death) the 200-day |
| Volume (vs 20d avg) | 1.0x | 2x+ means a spike in market attention |
💡 Korea Market 101
📰 Recent News
- Game Stocks Lag KOSPI, Undervaluation Persists — 조선일보
- Can Krafton address investors’ concerns about stock price? — The Korea Times
- When Should You Buy KRAFTON, Inc. (KRX:259960)? — simplywall.st
- Krafton Reappoints CEO Kim Chang-han Through March 2029 — thelec.net
- Can The KRAFTON CEO Keep His Promise? Strong Earnings, Weak Stock, and a Looming Reappointment Decision — Inven Global
- Krafton CEO purchases $3.3 million worth of company shares — 매일경제
💡 Korea Market 101
🔭 Scenarios & What to Watch
CEO Kim Chang-han’s reappointment through March 2029 and his personal $3.3 million share purchase signal insider confidence, which may support sentiment if new title pipelines execute well. The next earnings release (July 28, 2026) will be key to confirming whether growth momentum holds. With RSI at 49.1 (neutral) and shares below both MA60 and MA200, continued weakness in game-sector sentiment or slower non-PUBG diversification may weigh on re-rating toward the ₩363,217 average analyst target.
Next earnings on 2026-07-28 (in 6 days) — guidance usually decides the stock’s direction more than the reported quarter.
💡 Korea Market 101
📚 All stock analysis · More on Krafton · Market report for this session
Auto-generated stock report · 2026-07-21 16:00 KST
For information only — a summary of public data, not a recommendation to buy or sell any security. Source data (Yahoo Finance and others) may be delayed or contain errors. All investment decisions are your own responsibility.
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