Stock Deep Dive · 2026-08-24
Krafton (259960) closed at ₩224,000, up 0.90% on the day. Year-to-date return is -8.2%, sitting at 17% of its 52-week range. Earnings for the quarter were reported on 2026-08-14 (EPS ₩-632 vs ₩3,548 consensus, -118%). Listed in Seoul — for USD-based investors, KRW moves add an FX layer on top of the stock’s local return.
|
Close
₩224,000
+0.90% · YTD -8.2%
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Market Cap
₩10.10T
Electronic Gaming & Multimedia
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Forward P/E
9.0x
PER 11.5x
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52-wk Range
17%
High ₩344,000 · Low ₩199,300
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🔍 At a Glance
Krafton trades at a forward PER of just 9.0x and EV/EBITDA of 4.8x, with TTM operating margins near 30.3% and quarterly revenue up a striking 94.9% YoY — metrics that scream undervaluation relative to global gaming peers. Yet the stock sits just 17% up its 52-week range, down 18.8% over three months, and investor concern about life after PUBG (its flagship franchise) has driven a major domestic institution, the National Pension Service, to trim its stake.
🏢 How It Makes Money
Krafton, listed on the KOSPI and headquartered in Seoul, develops and distributes PC, mobile, and console games — most famously PUBG: Battlegrounds — alongside consulting, investment, and video content businesses across Korea, Asia, the US, and Europe. Its earnings remain heavily tied to the continued monetization and live-service extension of PUBG, making franchise diversification a key swing factor for future growth.
📈 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% |
| 26Q2* | ₩1.29T | ₩410.9B | ₩-27.4B | 31.8% |
* 26Q2 figures come from the company’s preliminary earnings disclosure filed with Korea’s DART on 2026-07-29. They are unaudited and will be replaced once the reviewed quarterly or half-year report is filed.
Latest-quarter revenue up +94.9% versus the same quarter a year ago.
💡 Korea Market 101
⚖️ Valuation — Cheap or Expensive?
| Metric | Value | How to read it |
|---|---|---|
| P/E (trailing) | 11.5x | Price vs last 12 months’ earnings |
| P/E (forward) | 9.0x | Price vs next 12 months’ expected earnings — growth hopes baked in |
| P/S | 2.6x | Price vs revenue — for high-growth names with thin profits |
| P/B | 1.4x | Price vs book value — below 1x means priced under liquidation value |
| EV/EBITDA | 4.8x | Enterprise value (incl. debt) vs cash generation |
Peer comparison
| Name | Mkt Cap | P/E | Fwd P/E | P/S |
|---|---|---|---|---|
| KRAFTON | ₩10.10T | — | 9.0x | 2.3x |
| NC | ₩4.40T | — | 10.0x | 2.1x |
| Netmarble | ₩3.11T | — | 9.9x | 1.1x |
💡 Korea Market 101
💰 Dividend — What It Pays Back
- Dividend yield: 1.01%
- Dividend per share: ₩2,240
- Payout ratio: 11.9%
💡 Korea Market 101
🎯 Street Consensus
- Price target (mean): ₩358,335
- Target high / low: ₩410,000 / ₩297,000
- Implied upside: +60.0%
- Rating: none
- Analysts covering: 23
- Last earnings: 2026-08-14 — reported
💡 Korea Market 101
📉 Price Action — Technical Check
| Indicator | Value | How to read it |
|---|---|---|
| RSI (14d) | 40.8 | Above 70 overbought · below 30 oversold |
| vs 60-day MA | -5.4% | Above/below the medium-term trend |
| vs 200-day MA | -9.2% | 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) | 0.6x | 2x+ means a spike in market attention |
💡 Korea Market 101
📰 Recent News
- Krafton Reappoints CEO Kim Chang-han Through March 2029 — thelec.net
- Game Stocks Lag KOSPI, Undervaluation Persists — 조선일보
- Can The KRAFTON CEO Keep His Promise? Strong Earnings, Weak Stock, and a Looming Reappointment Decision — Inven Global
- Concerns over post-PUBG growth prompts NPS to unload Krafton shares — The Korea Times
- Krafton’s Jang Tae-seok Tops Korean Gaming Industry Pay with ₩3.9 Billion in H1 — finance.biggo.com
- Krafton CEO purchases $3.3 million worth of company shares — 매일경제
How to read these headlines
The headlines reveal a tug-of-war over confidence: CEO Kim’s reappointment and personal share purchases signal internal conviction, while NPS’s share reduction and persistent sector “undervaluation” framing suggest the market isn’t yet convinced growth extends meaningfully beyond PUBG. This tension — leadership commitment versus institutional skepticism — is exactly what could determine whether Krafton’s cheap multiples close via re-rating or persist as a value trap.
Headlines are credited to their publishers — click a headline to open the original article. The commentary is written by this site and does not represent the views of any publisher.
💡 Korea Market 101
🔭 Scenarios & What to Watch
The bull case hinges on Krafton proving that recent revenue acceleration extends beyond PUBG’s core base, closing the gap toward the analyst consensus target of ₩358,335 (range ₩297,000–410,000 across 23 analysts). The bear case is a continuation of the post-PUBG growth plateau that has RSI at a soft 40.8 and shares trading below both the 60-day and 200-day moving averages. Watch the next earnings release on 2026-11-03 for updated growth guidance, and monitor whether CEO Kim Chang-han’s leadership (reappointed through March 2029) delivers on diversification promises. For USD-based investors, KRW currency swings add another layer to translated returns.
💡 Korea Market 101
📚 All stock analysis · More on Krafton · Market report for this session
Stock report · published 2026-08-24 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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