Selvas AI (108860) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
Selvas AI earns money along two lines: a core AI-technology business in speech recognition that turns speech into text, speech synthesis that reads text aloud in a human voice, and handwriting recognition; and a medical-device business run through its subsidiaries Mediana and Selvas Healthcare. More than half of its ₩114.8 billion in consolidated revenue comes from steadily selling medical devices, on top of which higher-margin AI software is layered. Recent disclosures are mostly routine filings; net profit fell into the red in 2025 on a one-off accounting charge of about ₩4.57 billion in intangible-asset impairment, but consolidated operating profit recovered on improvement at subsidiary Mediana, and net profit swung back to a profit in Q1 2026. On balance, its strengths are speech-AI assets with real entry barriers, the steady base of its medical-device subsidiaries, a +85% operating-profit recovery in 2025, and a Q1 net-profit swing to positive, while the cautions are that operating margin is still thin at around 1% even excluding the impairment, so net profit can swing on small changes, and multiples look high when set on top of thin earnings.
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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 “AI & Big Data” (Internet, Platforms & Software · Software), a type typically read first through EV/Sales.
AI and big-data software firms pour money into research and expansion to grow fast, so near-term profits are often thin or negative and earnings-based multiples fall short. That is why EV/Sales — enterprise value measured against revenue — is the first lens.
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).
- The most recent full-year net result was a loss.
- Revenue rose 2.1% year over year, and the pace is slowing (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 0.8% higher than a year earlier.
- ROE is -2.1% (controlling-interest basis). It is below the sector average.
- Operating margin is 1.3%.
- P/E is hard to compute here, so this is read on P/B.
Ownership & governance As of 2025-12-31
Largest shareholder Kwak Min-chul 10.06% (individual)
Controlling bloc incl. related parties 11.57%
With the controlling bloc holding 12%, ownership is dispersed, leaving room for control-related or activist dynamics.
🔎 In-depth analysis Reading
Selvas AI earns money along two lines. The first is the parent company's core AI-technology business, selling speech-to-text (STT) that turns speech into text, text-to-speech (TTS) that reads text aloud in a human voice, and handwriting recognition/OCR, along with meeting transcription (Selvas Note), medical voice records (MediVoice), AI audiobooks (odiro), and educational voice services. The second, and the larger share of revenue, is the subsidiaries' medical-device business: Mediana makes hospital equipment such as patient monitors and defibrillators, while Selvas Healthcare makes body-composition analyzers, automatic blood-pressure monitors, and braille terminals and reading magnifiers for the visually impaired. The key to understanding this company is that more than half of its ₩114.8 billion in consolidated revenue comes from steadily selling medical devices, with higher-margin AI software layered on top.
The latest close is ₩10,630 and the market capitalization is ₩286.1 billion. The price sits above its 20-day moving average (₩7,848) and above its 60-day moving average (₩8,855). 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 64.3, a neutral level. The one-month change is +49.1%, the three-month change is -16.4%, and the position relative to the 52-week high is -36.5%. Relative strength versus the KOSDAQ is 58 (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 58% of all stocks. Over the past three months it outpaced the index by 23.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
The P/B (how many times shareholders' equity the price represents) is 2.59x, an ordinary level against net assets, neither notably expensive nor cheap. The P/E (how many times a year's profit the price represents) cannot be computed because 2025 net profit was a loss, but that loss stems less from weak operations than largely from a one-time intangible-asset impairment of about ₩4.57 billion booked that year (a non-cash charge that accounting-wise reduces recorded business value). In fact, core operating profit rose +85% the same year. Judging the company on trailing figures alone would therefore show a picture obscured by a one-off charge; the view on normalized earnings excluding the impairment is closer to the company's true underlying health. Reading it together with operating margin still thin at 1.3%, a debt ratio somewhat high at 279%, and a current ratio of 465% that leaves room in short-term coverage, the company's task lies less in debt than in thickening the layer of its profit.
Revenue grew from ₩48.6 billion (2021) to ₩114.8 billion (2025), about 24% annually over four years, largely because medical devices such as Mediana were fully brought into the consolidation in 2024, lifting the figure a notch. After that jump, revenue rose +2.1% in 2025 as the top line entered a stable stretch, while operating profit recovered +85% year on year to ₩1.48 billion, turning the direction of earnings upward. The clearest change is Q1 2026: cumulative revenue of ₩26.6 billion was similar to the prior year, but net profit swung to a profit of +₩3.74 billion. In other words, the company has entered a stage where profit is captured as soon as the cost structure normalizes, even without a large rise in revenue. This is why the earnings-based valuation for this year is viewed on normalized profit excluding the impairment, reflecting the removal of the 2025 one-off loss along with steady medical-device revenue and recovery in the AI segment. There is no basis in the current data to expect profit from 2027 onward to fall below this year's, so this year's recovery is not treated as the peak of an earnings cycle.
Recent disclosures are mostly routine filings: the quarterly report (Mar 2026), the annual report (Dec 2025), and matters related to the regular shareholders' meeting, with no separate large order, capital raise, or dividend disclosures. The core lies in two things in the annual report. One is that net profit fell into the red in 2025 on an intangible-asset impairment of about ₩4.57 billion, which is a one-off accounting charge rather than weakness in the core business. The other is that improved results at medical-device subsidiary Mediana pulled up the recovery in consolidated operating profit. The most important change that followed is the swing to a net profit in the Q1 2026 report, and whether this profit continues into the next quarter and whether the AI software segment crosses its breakeven point are the points to watch ahead.
The strengths are clear: speech-recognition and speech-synthesis AI as assets with real entry barriers, the steady base of medical-device subsidiaries that support more than half of consolidated revenue, and an upward turn in earnings, with a +85% operating-profit recovery in 2025 followed by a Q1 2026 swing to a net profit. The share price, too, having corrected more than half from its high, is not at a demanding level. The points to watch together are that, even excluding the impairment, operating margin is still thin at around 1%, so net profit can swing on small cost or revenue changes; that top-line growth has slowed since the jump; and that the earnings-based multiple (P/E) therefore looks high, set on top of the thin earnings of early normalization. In sum, this company is strongest when the AI segment clears breakeven on top of stable medical-device revenue and the Q1 profit repeats quarter after quarter, and weakest when costs or impairments recur or the profit layer struggles to thicken.
🔎 Valuation vs peers Overvalued
Because the business splits into a hybrid of AI software and medical devices, it is viewed against both a software peer (Polaris Office) and a medical-device peer (i-SENS).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Polaris Office | 32.26x | 1.73x | 11.13% |
| i-SENS | 0.00x | 1.62x | -1.73% |
The current P/B of 2.31x is higher than the software peer Polaris Office (1.78x) and the medical-device peer i-SENS (1.47x), placing it in premium territory on a net-asset basis. The trailing P/E cannot be computed because net profit was a loss on the one-off intangible-asset impairment, so it is hard to call the stock expensive or cheap on last year's confirmed figures alone. Even on a forward basis assuming normalized profit with the impairment stripped out, operating margin is thin at around 1%, so the market-cap-to-profit multiple sits high. Taken together, even allowing for an AI-technology premium, the current price runs somewhat ahead of the earnings base and leans toward the overvalued side, though the assessment has room to change once profitability in the AI segment settles into the black and medical-device margins improve.
Price history Close · MA20 · MA60
The latest close is ₩10,630 and the market capitalization is ₩286.1 billion. The price sits above its 20-day moving average (₩7,848) and above its 60-day moving average (₩8,855). 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 64.3, a neutral level. The one-month change is +49.1%, the three-month change is -16.4%, and the position relative to the 52-week high is -36.5%. Relative strength versus the KOSDAQ is 58 (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 58% of all stocks. Over the past three months it outpaced the index by 23.7%. 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 +23.74% / 6M +14.86% / 12M -23.17%
Key metrics Computed vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 2.59x is above the sector median (1.10x).
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) Estimate
Model output — not a price target. This is what the formula returns under the assumptions below, not a view on where the share price should go.
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 -2.1%, below the sector average (1.0%). The operating margin is 1.3%. The debt ratio is 42.5%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $37.2M | $79.0M | $80.6M | +2.07% ↓ slower |
| Operating profit | $2.9M | $561,975 | $1.0M | +85.27% ↑ faster |
| Net profit | -$1.8M | -$4.1M | -$4.2M | — |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $34.1M | $35.7M | $37.2M | $79.0M | $80.6M |
| Operating profit | $3.9M | $3.5M | $2.9M | $561,975 | $1.0M |
| Net profit | $2.7M | $4.6M | -$1.8M | -$4.1M | -$4.2M |
| Revenue CAGR | 4-yr avg 23.98% | ||||
Revenue rose 2.1% year over year (2023 ₩53.0 billion → 2024 ₩112.5 billion → 2025 ₩114.8 billion), and the three-year trend is 'rising'. That said, the pace of growth slowed from the prior year. Operating profit rose 85.3% year over year. Profit is growing at an accelerating pace. Over the 5 years on record, revenue compound annual growth (CAGR) is 24.0%. The two-year revenue CAGR is 47.1%. In the most recent quarter (Q1 2026), revenue was 0.8% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- —
Points to watch
- Operating profit barely covers the interest bill (interest coverage below 1x).
- The most recent full-year net result was a loss.
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
- Revenue rose 2.1% year over year, and the pace is slowing (3-year trend: rising).
- The price is high versus peers, so expectations already appear priced in.
Recent news & events searched · sourced
- 2026-05-15FilingQ1 2026 quarterly report filed. Consolidated revenue was similar to the prior-year period, but net profit swung to a profit.Near term: the swing to a net profit suggests the 2025 impairment may be a closed one-off. Medium term: whether the profit repeats quarterly is the key to confirming normalized earning power. Source
- 2026-03-19Earnings2025 annual report filed. Revenue ₩114.8 billion (+2.1%), operating profit ₩1.48 billion (+85%), but a net loss of ₩6.0 billion due to intangible-asset impairment and the like.Near term: the net loss makes the P/E incomputable and feeds a rich-valuation read. Medium term: the operating-profit recovery and the one-off nature of the impairment leave room for normalization. Source
- 2026-03-27FilingRegular shareholders' meeting results disclosed. Approval of financial statements and other routine agenda items handled.Near term: limited signals of change in governance or dividend policy. Medium term: with no large-scale capital policy, the existing business flow is maintained. Source
- 2026-03-19FilingAudit report filed (FY2025). External audit finalizes the financial statements.Near term: the loss-making net profit, including the impairment, is finalized. Medium term: with accounting uncertainty resolved, a benchmark is set for comparing 2026 normalized earnings. Source
Figure cross-check computed ↔ external
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-03-27Shareholders' meeting notice
- 2026-03-19Audit report (amended)
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-05Shareholders' meeting notice
- 2026-03-05Amended filing
- 2026-03-05Amended filing
- 2026-03-04Amended filing
- 2026-02-27Disclosure
- 2026-02-27Shareholders' meeting notice
- 2026-02-26Shareholders' meeting notice
📖 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.