NCSOFT (036570) 🔎 In-depth
KOSPI · Price as of 2026-08-06 · Updated 2026-08-09
NCSOFT (NC) develops and operates online and mobile games in-house. In-app purchases and subscription fees from MMORPGs represented by 'Lineage' are its main revenue source, and its structure is shifting so that new titles are added to long-standing flagship IP - it launched the new title Aion 2 in Korea and Taiwan in 2025 and began Lineage Classic in February 2026. Its preliminary first-quarter 2026 results (revenue ₩557.4 billion, operating profit ₩113.3 billion) confirmed a rebound, and under a three-year 2025-2027 shareholder-return plan it has committed to a cash dividend of 30% of consolidated net profit excluding one-off items and to retiring about 1.9% of shares outstanding. The strength is that on top of the stable cash flow from the Lineage IP, Aion 2 has been confirmed as real profit from the first quarter, with a global launch in the second half remaining as a growth axis. The main caution is that the durability of a new title's early success and the balance between the second-half global launch's success and marketing costs are the variables for second-half profit.
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30-second brief
Pulled directly from the computed values below — not a separately written opinion.
What do the SourceComputedEstimateReading tags mean?
Source filings and exchange data · Computed calculated from public data · Estimate our own unverified projection · Reading drafted automatically, then rule-checked. See AI & Automation.
Core valuation metric
This stock's effective sub-sector is “Games” (Games, Entertainment & Content), a type typically read first through forward P/E.
Game companies' results hinge on new title launches, so expected future profits explain the share price better than past earnings do. That's why forward P/E — based on projected net income — comes before the trailing figure here.
Price against earnings alone becomes unstable when earnings swing. Reading it together with price against assets helps gauge the downside.
This note explains how each sector is typically valued and is educational context only, not investment advice.
At-a-glance assessment financial health · growth · profitability · valuation
- Operating profit barely covers the interest bill (interest coverage below 1x).
- Revenue fell 4.5% year over year (3-year trend: falling).
- Most recent quarter (Q1 2026) revenue was 54.7% higher than a year earlier.
- ROE is 13.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 7.3%.
- A sector-metric and in-depth research verdict — see “Valuation vs peers” below for the basis.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Taek-jin 12.2% (individual)
Controlling bloc incl. related parties 12.36%
With the controlling bloc holding 12%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis Reading
NCSOFT (NC) is a company that makes money by developing and operating online and mobile games in-house. The root of its revenue is MMORPGs (large role-playing games in which many people enjoy the same world together) represented by 'Lineage,' where in-app purchases that sell items and services inside the game and subscription fees are the main revenue source. On a 2025 basis, by platform, mobile games were about ₩794.4 billion and PC online games about ₩430.9 billion; by region, Korea was about ₩928.3 billion, Asia about ₩277.5 billion, and North America and Europe about ₩124.7 billion, with overseas and royalty accounting for about 38%. It launched the new title Aion 2 in Korea and Taiwan in November 2025 and began Lineage Classic in February 2026, so its structure is shifting so that new titles are added to long-standing flagship IP (intellectual property).
The latest close is ₩239,500 and the market capitalization is ₩5.2 trillion. The price sits above its 20-day moving average (₩230,050) and below its 60-day moving average (₩253,883). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 51.5, a neutral level. The one-month change is -6.1%, the three-month change is -8.4%, and the position relative to the 52-week high is -29.1%. Relative strength versus the KOSPI is 42 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 42% of all stocks. Over the past three months it outpaced the index by 12.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Looking at the valuation metrics, the P/E ratio (how many times one year's profit the share price represents) is 14.88x and the P/B (how many times book equity) is 1.46x. However, this P/E has a trap. 2025 net profit of about ₩346.7 billion contained large one-off gains such as the sale of a headquarters building (NC Tower 1), so net profit looks excessively large relative to that same year's operating profit (about ₩16.1 billion). In other words, the P/E on last year's basis does not fully show the strength of the core business. The balance sheet is on the sturdy side: the current ratio (cash-like assets against debt due within a year) is 353.5%, ample, and the ROE (how much is earned in a year per unit of equity) is 10.3%. The debt ratio (debt relative to equity) is shown as 128.8%, but given the nature of a game company, items that are not actual interest-bearing burdens - such as advance revenue and deferred revenue - are included, so it differs in character from pure borrowing burden.
Revenue passed through a downturn, peaking at ₩2.57 trillion in 2022 and declining to ₩1.78 trillion in 2023, ₩1.58 trillion in 2024 and ₩1.51 trillion in 2025. Operating profit even posted a loss of about ₩109.2 billion in 2024. But in the first quarter of 2026 the flow changed. Quarterly revenue of ₩557.4 billion (+54.7% year over year), operating profit of ₩113.3 billion (more than 20 times the prior-year quarter) and net profit of ₩152.4 billion, as the success of Aion 2 and Lineage Classic lifted results. The PC segment posting record quarterly revenue was the axis of the rebound. What comes next matters more. Aion 2 is scheduled for a global PC launch in the second half of 2026 via Steam and Purple in North America, South America, Europe, Japan and elsewhere, adding a new revenue source in the second half. This year's profit is therefore on a trajectory that is heavier in the second half than the first, with room to expand into next year, when the global service is reflected for a full year. Even though last year's P/E looks high, the picture changes on a forward (future-earnings) basis as the core business recovers.
Recent disclosures center on new-title performance and shareholder returns. On May 13, 2026 the company disclosed preliminary consolidated first-quarter results (revenue ₩557.4 billion, operating profit ₩113.3 billion), confirming the rebound, and on May 8 it announced an investor briefing (IR). On April 28 a report on the results of a treasury-share disposal was released; the company has stated a three-year 2025-2027 shareholder-return plan to pay a cash dividend of 30% of consolidated net profit excluding one-off gains and losses and to retire about 1.9% of shares outstanding (about 410,000 shares). On May 29 there was a correction disclosure to a single sale/supply contract signed in 2021. In June there were reports related to executive and major-shareholder ownership and large-holding positions.
The strengths are clear. On top of the long-standing Lineage IP generating stable cash flow of roughly ₩1.5 trillion, the new title Aion 2 was confirmed as real profit from the first quarter of 2026, with a global launch in the second half remaining as an additional growth axis. The balance sheet is also cash-rich, and a three-year shareholder-return policy is spelled out, supporting the downside. Last year's P/E looks high because of the one-off gain on asset sales; on a forward basis reflecting the core-business recovery it is actually similar to or slightly below the game peer group. The point to watch is dependence on new titles. The variables for second-half profit are how well Aion 2's early success in Korea and Taiwan is sustained over time and how the balance between the second-half global launch's success and marketing costs is struck. If new-title performance continues, the forward profit estimate gains support; if the early success cools quickly, the structure reverts to being centered on legacy-IP cash flow.
🔎 Valuation vs peers Fairly valued
The peer set consists of representative large online and mobile game developers and publishers (new-title and IP-based).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Krafton | 14.44x | 1.45x | 11.99% |
| Netmarble | 14.20x | 0.56x | 6.18% |
| Nexon Games | — | 2.53x | -24.26% |
Last year's (2025) net profit contained large one-off gains such as the headquarters sale, so the 15.88x P/E does not fully show the strength of the core business. On a forward basis, with the core business rebounding, the valuation reads differently. Given that large game peers have P/Es of roughly 14-15x, the current valuation - reflecting both the results rebound and the growth axis of the second-half global launch - can be viewed within a fair range that is neither much more expensive nor cheaper than peers. That said, if forward profit is confirmed above the internal estimate (about ₩390.0 billion, a forward P/E of about 14.0x) there is room for it to become relatively cheap, while if the new title's early success cools quickly the burden grows.
Price history Close · MA20 · MA60
The latest close is ₩239,500 and the market capitalization is ₩5.2 trillion. The price sits above its 20-day moving average (₩230,050) and below its 60-day moving average (₩253,883). Short-term and medium-term trends are diverging, so the direction is best read separately. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 51.5, a neutral level. The one-month change is -6.1%, the three-month change is -8.4%, and the position relative to the 52-week high is -29.1%. Relative strength versus the KOSPI is 42 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 42% of all stocks. Over the past three months it outpaced the index by 12.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M +12.61% / 6M -14.42% / 12M -36.16%
Key metrics Computed vs sector median
Valuation
The P/E of 14.88x is above the sector median (10.02x). The P/B of 1.46x is above the sector median (0.77x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 13.1%, above the sector average (7.0%). The operating margin is 7.3%. The debt ratio is 29.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $1.3B | $1.1B | $1.1B | -4.51% ↑ faster |
| Operating profit | $96.4M | -$76.7M | $11.3M | — |
| Net profit | $149.0M | $66.2M | $243.5M | +267.96% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.6B | $1.8B | $1.3B | $1.1B | $1.1B |
| Operating profit | $263.6M | $392.7M | $96.4M | -$76.7M | $11.3M |
| Net profit | $278.0M | $306.3M | $149.0M | $66.2M | $243.5M |
| Revenue CAGR | 4-yr avg -10.12% | ||||
Revenue fell 4.5% year over year (2023 ₩1.8 trillion → 2024 ₩1.6 trillion → 2025 ₩1.5 trillion), and the three-year trend is 'falling'. That said, the rate of decline narrowed from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is -10.1%. The two-year revenue CAGR is -8.0%. In the most recent quarter (Q1 2026), revenue was 54.7% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- ROE of 13.1% points to solid profitability.
Points to watch
- Revenue fell 4.5% year over year (3-year trend: falling).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-13EarningsPreliminary consolidated first-quarter 2026 operating results disclosure. Revenue of about ₩557.4 billion, operating profit of about ₩113.3 billion, and net profit of about ₩152.4 billion, a substantial improvement year over year.The starting point of a results rebound, as the success of Aion 2 and Lineage Classic is confirmed as real profit. Positive for short-term sentiment and a reference point for mid-term forward profit estimates. Source
- 2026-05-15FilingSubmission of the quarterly report as of the end of March 2026 (including business and financial details).Confirms and discloses the detailed financials behind the preliminary results. A basis for reviewing the business and financial structure over the mid term. Source
- 2026-04-28DividendDisclosure of a report on the results of a treasury-share disposal. Part of the execution of the three-year 2025-2027 shareholder-return plan (a cash dividend of 30% of consolidated net profit excluding one-off items plus retirement of about 1.9% of shares outstanding, about 410,000 shares).Continued shareholder returns support the downside. Mid-term dividend and retirement expectations. Source
- 2026-05-08IRDisclosure announcing an investor briefing (IR). Explaining the first-quarter results and the Aion 2 global strategy to the market.An official channel for communicating the company's business plans and outlook. Affects short-term sentiment and mid-term confidence. Source
- 2026-04-22IROfficial announcement of Aion 2's global launch in the second half of 2026. A PC-only service via Steam and Purple, with servers in North America, South America, Europe and Japan and support for 10 languages.Confirms a new second-half revenue source. A key axis of the mid-term growth trajectory. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| First-quarter 2026 operating profit | approx. ₩113.3 billion(base quarter op_income ₩113,276,557,964) | approx. ₩113.3 billion | Confirmed | link |
| Aion 2 global launch timing and platforms | 2026 PC | 2026 , · PC | Confirmed | link |
| Estimated 2026 normalized net profit (forward) | approx. ₩390.0 billion(self-estimate, forward PER approx. 14.0) | — | Unverified | link |
Recent filings Source
- 2026-06-08OwnershipOwnership-change filing
- 2026-06-01Corporate governance report
- 2026-05-29Single supply/sales contract (amended)
- 2026-05-15PeriodicQuarterly report
- 2026-05-14OwnershipOfficers'/major-shareholders' holdings report
- 2026-05-13EarningsFair-disclosure notice
- 2026-05-08Disclosure
- 2026-04-28OwnershipLargest-shareholder ownership change report
- 2026-04-28TreasuryTreasury-stock disposal decision
- 2026-04-23Amended filing
- 2026-04-23Amended filing
- 2026-04-22Amended filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.