Webzen is a game developer and operator whose core asset is the 'MU' IP it has run for over 20 years. It earns money in two ways: item and cash-charge revenue from the games it operates directly, and royalty revenue from lending the MU IP to domestic and overseas publishers. On March 27 it disclosed a corporate-value-up plan setting out a direction to resolve undervaluation and enhance shareholder returns, and on June 10 it decided on a treasury-share buyback. Q1 2026 results on May 15 — revenue of ₩39.4 billion, operating profit of ₩5.4 billion, net profit of ₩8.8 billion — showed profit swinging up sharply, putting the forward P/E of 9.17x among the lower rungs of peer game companies. What stands out lately is a two-sided picture: with a P/B of 0.5x asset discount and a mid-6% dividend and treasury buyback cushioning the downside, the undervaluation appeal becomes clearer if a recovery in core operating profit is also confirmed; on the other hand, revenue has been declining for several years, and much of the sharp Q1 net-profit jump came from non-operating items.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue fell 18.8% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 5.2% lower than a year earlier.
- ROE is 3.5% (controlling-interest basis). It is below the sector average.
- Operating margin is 17.0%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Byung-gwan 28.61% (individual)
Controlling bloc incl. related parties 29.09%
With the controlling bloc holding 29%, control is maintained but the free float is relatively large.
🔎 In-depth analysis
- Webzen is a game developer and operator that started with the PC online game 'MU Online.' Its core asset is the 'MU' intellectual property (IP) it has run for over 20 years, and the lineup now spans not only the PC titles MU Online and MU Blue but mobile MU-series games such as MU Archangel, MU Monarch and MU Pocket Knights, as well as R2, R2 Origin and Sun Classic.
- It earns money in two ways: one is item and cash (Webzen Cash) charge revenue from the games it operates directly, and the other is royalty (license) revenue from lending the MU IP to domestic and overseas publishers (especially overseas, including China).
- Because the structure is to run a proven, popular IP over a long span while earning extra income through licensing, dependence on new-title hits is relatively low, and IP longevity and overseas license renewals form the center of results.
- The latest closing price is ₩12,350 and the market capitalization is ₩382.4 billion.
- The price sits above the 20-day line (₩11,586) and above the 60-day line (₩11,466).
- Being above both the short- and mid-term moving averages, the trend is on the favorable side.
- The RSI (an auxiliary gauge that weighs upward versus downward strength over the past 14 days on a 0-100 scale) is 60.4, a neutral level.
- The one-month change is +14.1%, the three-month change is +4.7%, and the price sits -31.4% below its 52-week high.
- Relative strength versus the KOSDAQ is 78 (on a 1-99 scale, calculated from returns against the index over the past year with more weight on recent performance; higher means stronger than the market).
- Among all stocks it ranks in roughly the top 21% by strength.
- Over the past three months it outperformed the index by 38.0%.
- Chart readings are best viewed together with trading volume and disclosure dates.
- On confirmed 2025 annual results, the P/E ratio (how many times one year's net profit the price represents) is 15.92x and the P/B (how many times per-share net asset value the price represents) is 0.56x.
- A P/B well below 1x means the market capitalization trades at about half of book net assets (shareholders' equity of about ₩683.6 billion), a signal that the share price is cheap relative to asset value.
- The operating margin of 17.0% is better than the game-industry average, the debt ratio (debt to equity) is 112.4%, and the current ratio of 463% gives comfortable short-term solvency.
- One point to note is that the P/E of 14.58x is on a trailing basis, off 'last year's confirmed earnings, which were at a trough.' The multiple only looks high because 2025 net profit fell sharply and shrank the denominator; it does not represent the company's current earnings power as is.
- The forward P/E, reflecting this year's earnings trend, is 10.6x — on the low side versus peer game companies, as seen below.
- At an inflection where profit is turning, the forward figure is closer to the real picture than last year's multiple.
- Revenue trended downward in recent years, falling from ₩284.8 billion in 2021 to ₩174.4 billion in 2025 (a five-year revenue CAGR of -11.5%), and operating profit dropped over the same span from ₩103.0 billion to ₩29.7 billion; in 2025 alone the decline was pronounced, with revenue -18.8% and operating profit -45.5%.
- This reflected a shortage of large new titles to offset the natural revenue decline of the existing MU and R2 titles.
- This year, however, the trend is shifting.
- Q1 2026 revenue of ₩39.4 billion (-5.2%) narrowed the rate of decline sharply, and net profit of ₩8.8 billion was nearly six times the ₩1.3 billion of the same period a year earlier.
- On the view that this change continues, the P/E on this year's forecast net profit is around 10.6x, a different character from the 14.58x seen at last year's earnings trough.
- The foundation of this recovery is that the company does not rely on a single new-title hit but stands on recurring cash flow from directly operating the proven MU IP and overseas license royalties.
- In other words, with the narrowing revenue decline and the profit rebound appearing together, it looks to have entered an inflection where profit turns first out of several years of negative growth.
- That said, much of the sharp Q1 net-profit jump came from non-operating items (valuation and financial gains), while operating profit (₩5.4 billion, -39.6%) is still down, so whether core profit recovers fully is a point to keep checking in the next quarter's trend.
- Recent disclosures put weight on shareholder returns.
- On March 27, 2026 the company issued a 'corporate-value-up plan (voluntary disclosure),' acknowledging its low P/B itself and setting out a direction to resolve undervaluation and enhance shareholder returns.
- It then announced confirmed Q1 results (revenue of ₩39.4 billion, operating profit of ₩5.4 billion, net profit of ₩8.8 billion) via a fair disclosure of preliminary results on May 12 and a quarterly report on May 15, and on June 10 filed a material-event report on a 'treasury-share buyback decision,' moving to buy back its own shares.
- Buying back shares during a P/B of 0.5x asset-discount phase is a move to lift per-share value and reduce the floating supply, and together with a dividend of ₩700 per share and a payout ratio of 84.6% (a dividend yield in the mid-6% range), it shows a will to return capital resting on cash flow.
- The flow from the value-up plan into an actual treasury buyback is meaningful in that it is not a promise made in words alone; still, since that much cash is used for returns, the capacity for growth investment such as new titles or acquisitions is a point to gauge alongside.
- Webzen is a company with recurring cash flow from the proven MU IP, a P/B of 0.5x — half of net assets — active shareholder returns through a mid-6% dividend and a treasury buyback, ample liquidity, and a solid operating margin.
- On top of this, with Q1 profit this year swinging up sharply, the forward P/E of 9.17x falls among the lower rungs of peer game companies.
- With asset value, dividends and an earnings rebound gathered together, the current price range clearly reads as an undervaluation signal in part.
- The point to view alongside is that revenue has been declining for several years and much of the sharp Q1 net-profit jump came from non-operating items: in a phase where a recovery in core operating profit is also confirmed, the undervaluation appeal grows clearer, while in a phase where a new-title gap lengthens or license renewals are delayed, the high dividend's sustainability acts as a prop for the downside.
- In sum, rather than a growth stock that scales fast on new-title momentum, this is closer to an asset/dividend stock in which a low P/B and high dividend cushion the downside while an earnings rebound is added on top.
🔎 Valuation vs peers Inconclusive
Based on the business character of running mature IP such as MU and R2 for license and item revenue while pairing it with shareholder returns like dividends and buybacks, the comparison uses a mature-type game company (Com2uS) alongside IP/new-title-type game companies (SHIFT UP, Krafton). The P/E and P/B in the table are on-site calculations based on the current price.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Com2uS | 8.60x | 0.32x | 3.67% |
| Shift Up | 10.68x | 2.22x | 20.78% |
| Krafton | 14.98x | 1.56x | 10.43% |
Compared with Com2uS (mature IP, high dividend, low P/B), the closest in business character, Webzen at a P/E of 14.08x and P/B of 0.49x has a smaller net-asset discount than Com2uS (0.31x) and a higher P/E. Versus high-growth, high-ROE game companies like SHIFT UP and Krafton, the gap in ROE (3.5% versus 10-21%) and revenue growth is large, making them hard to view by the same yardstick. The P/E of 14x on last year's confirmed (trailing) earnings can look higher than the real earnings power because of the drop in 2025 profit, and on a seasonality-approximated (forward) basis there is room for the multiple to fall, though that is an unverified approximation rather than an official company forecast. On P/B and dividends the undervaluation appeal exists, while on growth and ROE the reason for the discount exists too, so it is hard to pronounce either way. It is therefore left Inconclusive rather than declared undervalued or overvalued, and it is appropriate to check together whether the revenue decline halts (new titles, IP licensing) and whether the high payout ratio is maintained.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| Next quarter | Q2 2026 | approx. ₩35.2 billion | approx. ₩4.3 billion | approx. ₩10.5 billion |
Price history Close · MA20 · MA60
The latest close is ₩12,350 and the market capitalization is ₩382.4 billion. The price sits above its 20-day moving average (₩11,586) and above its 60-day moving average (₩11,466). It holds above both its short- and medium-term moving averages, so the trend looks healthy. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 60.4, a neutral level. The one-month change is +14.1%, the three-month change is +4.7%, and the position relative to the 52-week high is -31.4%. Relative strength versus the KOSDAQ is 78 (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 79% of all stocks. Over the past three months it outpaced the index by 38.0%. 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 +38.04% / 6M +14.91% / 12M -15.48%
Key metrics vs sector median
Valuation
The P/E of 15.92x is above the sector median (13.30x). The P/B of 0.56x is below the sector median (1.58x). 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.
Intrinsic value (DCF estimate)
DCF (discounted cash flow) estimate — discount rate 10.7%, initial growth 10.0%→terminal 2.0%, 10-yr forecast, free-cash-flow basis, forward earnings power normalized 1.736x. A reference range that shifts materially with assumptions.
Profitability & financials
Return on equity (ROE) is 3.5%, below the sector average (5.0%). The operating margin is 17.0%. The debt ratio is 112.4%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $130.1M | $142.3M | $115.6M | -18.77% ↓ slower |
| Operating profit | $33.1M | $36.2M | $19.7M | -45.51% ↓ slower |
| Net profit | $38.2M | $37.7M | $15.9M | -57.81% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $188.7M | $160.5M | $130.1M | $142.3M | $115.6M |
| Operating profit | $68.3M | $55.0M | $33.1M | $36.2M | $19.7M |
| Net profit | $57.6M | $48.0M | $38.2M | $37.7M | $15.9M |
| Revenue CAGR | 4-yr avg -11.53% | ||||
Revenue fell 18.8% year over year (2023 ₩196.3 billion → 2024 ₩214.7 billion → 2025 ₩174.4 billion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 45.5% year over year. The decline widened. Over the 5 years on record, revenue compound annual growth (CAGR) is -11.5%. The two-year revenue CAGR is -5.7%. In the most recent quarter (Q1 2026), revenue was 5.2% lower than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
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.
- The dividend yield, at 5.7%, is on the high side.
- The balance sheet is stable in terms of debt and liquidity.
Points to watch
- Revenue fell 18.8% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-06-10UpdateTreasury-share buyback decision (material-event report) — a treasury buyback aimed at enhancing per-share value and shareholder returnsPositive for short-term supply/demand through a reduced floating supply and enhanced per-share value in a P/B of 0.49x undervaluation phase. That cash is used for returns rather than growth investment should be viewed alongside from a medium-term growth standpoint. Source
- 2026-05-15UpdateQ1 2026 quarterly report — revenue of ₩39.4 billion (-5.2%), operating profit of ₩5.4 billion (-39.6%), net profit of ₩8.8 billion confirmedThe rate of revenue decline slowed. Net profit rose sharply on non-operating items, but core operating profit fell, so whether it is a recovery needs confirming in the quarterly trend. Source
- 2026-05-12EarningsFair disclosure of preliminary results on a consolidated basis — advance release of preliminary Q1 resultsPrimary material for officially confirming the shape of revenue and profit ahead of the quarterly report. Should be viewed together with the latest results-box figures. Source
- 2026-03-27UpdateCorporate-value-up plan (voluntary disclosure) — disclosure of a direction to resolve undervaluation and enhance shareholder returnsThe company itself acknowledges the low P/B and sets out a direction for returns and value enhancement. To be interpreted in connection with the subsequent treasury-buyback decision it led to. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| Latest closing price | ₩12,350 | — | Unverified | link |
| Q1 2026 revenue and operating profit | revenue ₩39.4 billion / operating profit ₩5.4 billion | (2026.03) | Confirmed | link |
| Treasury-share buyback decision | 2026-06-10 | — | Confirmed | link |
| This year's seasonality-approximated operating profit | approx. ₩19.6 billion | — | Unverified | link |
Recent filings
- 2026-06-10TreasuryMaterial-fact report
- 2026-05-15PeriodicQuarterly report
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-04Disclosure
- 2026-04-30Amended filing
- 2026-04-30Amended filing
- 2026-04-30Amended filing
- 2026-04-30Amended filing
- 2026-04-30Amended filing
- 2026-04-28EarningsEarnings disclosure
- 2026-03-27Disclosure
- 2026-03-27Disclosure
📖 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.