YG PLUS is not a label that creates music itself but a company that earns money on three pillars: distribution, where it supplies recordings to platforms at home and abroad and collects fees; merchandise (MD), where it makes and sells album accessories and fan goods; and licensing, where it lends and borrows IP. In 2025 it posted revenue of ₩236.0 billion and operating profit of ₩32.3 billion, and in April 2026 it decided to acquire ₩12.0 billion of convertible bonds issued by a peer entertainment company, layering IP investment in other entertainment on top of its core business. What stands out lately is that its profitability, with a 11.9% ROE and a 13.7% operating margin, and its light valuation, with P/B and P/S ratios both around 1.0x, are strengths, while its results swing quarter to quarter with artist release schedules and merchandise volumes, and the success or failure of its investment targets can feed directly into earnings.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 27.7% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 9.4% lower than a year earlier.
- Even versus the prior quarter (Q4 2025), revenue was 9.1% lower.
- ROE is 11.9% (controlling-interest basis). It is below the sector average.
- Operating margin is 13.7%.
- The P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder YG Entertainment 30.11% (corporate)
Controlling bloc incl. related parties 33.6%
With the controlling bloc holding 34%, the ownership structure is stable.
🔎 In-depth analysis
- YG PLUS is not a label that makes music itself but a company that lays the 'road' along which finished music and goods reach fans.
- According to its official annual report, its main businesses are the investment, distribution, and platform-operation agency for recordings, the manufacture and sale of MD (artist and character goods), and IP licensing and distribution; through subsidiaries it also runs a financial-investment business (YG Investment) and record printing and consulting.
- Put simply, its three pillars are distribution, where it supplies recordings to domestic and overseas platforms and collects fees; MD, where it makes and sells album accessories and fan goods; and licensing income from lending and borrowing IP.
- Standing on the selling side rather than the creating side, its revenue is built from the combined volume of new releases and tours across many artists rather than riding on a single hit song.
- The latest close is ₩3,300 and market capitalization is ₩210.1 billion.
- The price sits below its 20-day line (₩3,513) and below its 60-day line (₩4,189).
- Trading beneath both its short- and mid-term moving averages, the trend is on the soft side.
- The RSI (a supplementary gauge that weighs upward against downward force over the past 14 days on a 0-100 scale) is 39.1, a neutral level.
- The one-month change is -6.5%, the three-month change is -33.0%, and the position versus the 52-week high is -68.2%.
- Its relative strength against the KOSPI is 2 (on a 1-99 scale, computed from returns over the past year against the index with more weight on the recent period; higher means stronger than the market).
- That places it in roughly the top 99% of all stocks by strength.
- Over the past three months it lagged the index by 48.3%.
- Chart reading is best done alongside trading volume and the dates of disclosures.
- On 2025 confirmed results, the trailing P/E (how many times one year's earnings the price is) is 9.38x, the P/B (how many times net assets) is 1.11x, and the P/S (how many times revenue) is about 1.0x.
- Recalculating on this year's expected earnings, the forward P/E (with a forward P/B of 1.11x) shows that the multiple stays light even after reflecting the earnings trend.
- On profitability, the ROE (how much it earns in a year on its equity) is 11.9%, the operating margin is 13.7%, and the net margin is 9.5%, which are decent margins for a distribution and services business.
- On the balance sheet, the debt-to-equity ratio (debt against equity) is about 144%, so the outline is ordinary, but the current ratio of 250% and interest coverage of 6.9x make short-term payment ability and interest-servicing capacity stable.
- With trailing multiples around 1x and forward multiples staying in the low double digits, the burden relative to assets and earnings is not high.
- Over five years, revenue rose steadily from ₩120.3 billion (2021) to ₩236.0 billion (2025), and in 2025 it grew 27.7% year on year, recording operating profit of ₩32.3 billion and net profit of ₩22.4 billion.
- Operating profit swung year to year (₩22.0 billion, then ₩10.3 billion, ₩21.2 billion, -₩0.7 billion, and ₩32.3 billion), which stems from the nature of a distribution and MD business, where earnings vary by quarter and year depending on when music releases and tour merchandise are concentrated.
- The forward P/E computed on this year's (2026) expected earnings is only slightly higher than the trailing 9.33x.
- In other words, the picture is that last year's strong results settle to a more normal level this year, not one in which earnings collapse sharply.
- First-quarter revenue of -9.4% and operating profit of -39.5% largely reflect an off-season with light release and merchandise volumes, while net profit for the same quarter held roughly flat, supported by financial and investment income.
- Taken together with multi-year revenue growth, a valuation around 1x, and a forward P/E in the low double digits, this year's earnings strength reads as fairly solid.
- The center of gravity of recent disclosures is 'investment.' In April 2026 the company decided to acquire ₩12.0 billion of convertible bonds issued by a peer entertainment company in cash (followed by two amending disclosures), and in May it separately reported a major management matter related to investment judgment.
- This move layers financial and strategic investment in other entertainment IP on top of its core recording and MD distribution business; if it succeeds, it can pursue both investment returns and business linkage, but that much cash is tied up and it also becomes exposed to the target's share price and results.
- Beyond that, the 2025 annual report (revenue ₩236.0 billion, operating profit ₩32.3 billion), the 2026 first-quarter report, the corporate governance report, and shareholders' meeting disclosures followed.
- YG PLUS's strengths are clear.
- Its profitability holds up, with a 11.9% ROE and a 13.7% operating margin; its finances are stable, with a 250% current ratio and 6.9x interest coverage; and both its P/B and P/S sit around 1x with light valuation on both an outline and earnings basis.
- Compared with the labels that own the entertainment IP itself, its forward P/E is on the low side, so even allowing for the difference in business character, there is room to read it as undervalued.
- At the same time, points to keep in mind by its nature are that results swing quarter to quarter with artist release schedules and merchandise volumes, and that as decisions to move cash outside the core business, like the ₩12.0 billion of convertible bonds, increase, the success or failure of investment targets feeds directly into earnings.
- In short, this is a stock whose earnings leverage revives strongly when new releases and tour merchandise pile up and investment gains are added, and whose volatility widens in periods where release gaps and investment losses overlap.
🔎 Valuation vs peers Fairly valued
Compared against a group in the same entertainment industry but of differing business character: parent company and artist-IP core YG Entertainment, plus major labels JYP and SM. Because YG PLUS bundles distribution, MD, and licensing as an entertainment-infrastructure firm rather than a music-creating label, its multiples should be viewed with the difference in business texture in mind rather than applied directly.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| YG Entertainment | 20.79x | 1.49x | 7.19% |
| JYP Entertainment | 10.94x | 2.83x | 25.87% |
| SM Entertainment | 4.92x | 1.70x | 34.63% |
A P/E of 10.7x is on the low side compared with the labels, but YG PLUS is a distribution and services company structurally lower in margin and growth than a label that owns IP directly, so a lower multiple is actually natural. Applying the same yardstick as YG Entertainment (23.6x) or JYP (12.4x) makes it look cheap, but the business texture differs; against SM (5.2x) it looks more expensive, so a single comparison is difficult. The key is that last year's trailing P/E is on a 'peak earnings' basis. Reflecting the trend of first-quarter 2026 operating profit falling 39.5%, the forward multiple rises, so it is hard to conclude it is undervalued from the trailing figure alone. It is therefore seen as within the 'fairly valued' range, with the recovery of earnings and the success of the ₩12.0 billion investment as the fork in any re-valuation.
Price history Close · MA20 · MA60
The latest close is ₩3,300 and the market capitalization is ₩210.1 billion. The price sits below its 20-day moving average (₩3,513) and below its 60-day moving average (₩4,189). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 39.1, a neutral level. The one-month change is -6.5%, the three-month change is -33.0%, and the position relative to the 52-week high is -68.2%. Relative strength versus the KOSPI is 2 (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 1% of all stocks. Over the past three months it lagged the index by 48.3%. 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 -48.30% / 6M -69.88% / 12M -82.84%
Key metrics vs sector median
Valuation
The P/E of 9.38x is below the sector median (14.81x). The P/B is 1.11x.
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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.7%, initial growth 4.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 11.9%, in line with the sector average (12.0%). The operating margin is 13.7%. The debt ratio is 144.5%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $148.2M | $122.5M | $156.4M | +27.66% ↑ faster |
| Operating profit | $14.1M | -$485,409 | $21.4M | — |
| Net profit | $14.3M | $787,530 | $14.9M | +1786.18% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $79.7M | $92.9M | $148.2M | $122.5M | $156.4M |
| Operating profit | $14.6M | $6.9M | $14.1M | -$485,409 | $21.4M |
| Net profit | $14.5M | $7.7M | $14.3M | $787,530 | $14.9M |
| Revenue CAGR | 4-yr avg 18.35% | ||||
Revenue rose 27.7% year over year (2023 ₩223.6 billion → 2024 ₩184.9 billion → 2025 ₩236.0 billion), and the three-year trend is 'mixed'. The pace of growth also quickened from the prior year. Over the 5 years on record, revenue compound annual growth (CAGR) is 18.4%. The two-year revenue CAGR is 2.7%. In the most recent quarter (Q1 2026), revenue was 9.4% lower than the same period a year earlier. Because quarterly results are relatively even in this industry, revenue also came in 9.1% lower than the prior quarter (Q4 2025), so the recent trend looks soft.
Latest quarterly results Q1 2026 · vs year-ago + prior quarter
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- ROE of 11.9% points to solid profitability.
- Revenue grew 27.7% year over year, a sign of growth.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- The figures shown are based on the last annual report as of the writing date, so it is best to review the latest quarterly results and filings alongside them.
Recent news & events searched · sourced
- 2026-04-20FilingDecision to acquire ₩12.0 billion of convertible bonds (equity-linked debt) of a peer entertainment company — a financial and strategic investment outside the core business (recording and MD distribution)Over the medium term there is hope for investment returns and business linkage, but cash is tied up and it also takes on the target's share-price and earnings risk Source
- 2026-05-11FilingAmending disclosure of the above convertible-bond acquisition decision — supplementing details related to the acquisitionThis is more of a clerical revision than a change to the investment decision itself, so the short-term impact is limited Source
- 2026-05-19FilingDisclosure of a major management matter related to investment judgment — notice of a management decision tied to investment activityAs a signal of a wider investment stride, the rising weight of variables outside the core business cuts both ways Source
- 2026-05-15EarningsFiling of the 2026 first-quarter report — revenue ₩53.5 billion (-9.4% YoY), operating profit ₩5.3 billion (-39.5%), net profit ₩7.0 billion (flat)With operating profit down sharply from a record 2025, this year starts carrying the burden of a decline Source
- 2026-03-19EarningsFiling of the 2025 annual report — revenue ₩236.0 billion (+27.7%), operating profit ₩32.3 billion, net profit ₩22.4 billion, a record highThe base fundamentals are strong, but the high bar works as a burden for 2026 comparisons Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue | ₩236.0 billion | ₩236.0 billion | Confirmed | link |
| 2026 first-quarter revenue and operating profit | revenue 535(-9.4%), operating profit 53(-39.5%) | 2026 1 | Confirmed | link |
| Decision to acquire ₩12.0 billion of convertible bonds | — | DART '' | Confirmed | link |
| 2026 estimated net profit (forward) | approx. ₩20.0 billion(self-estimate) | — | Unverified | — |
Recent filings
- 2026-05-29Corporate governance report
- 2026-05-19Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-11Amended filing
- 2026-04-30Amended filing
- 2026-04-20Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-20PeriodicAnnual business report (amended)
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Shareholders' meeting notice
- 2026-03-12Disclosure
📖 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.