YG Entertainment (122870) 🔎 In-depth
KOSDAQ · Price as of 2026-08-06 · Updated 2026-08-09
YG Entertainment is a K-pop agency that develops idol groups and earns money from albums and music, concerts and merchandise (MD), and advertising and ancillary income; it houses BLACKPINK, BABYMONSTER and TREASURE, while its subsidiary YG Plus handles album distribution and MD, and stadium-scale tours in particular lift profit in a stepwise fashion. In its May Q1 results the company posted a profitable footing alongside sharp gains in revenue and operating profit, and in March it set a dividend of 300 won per share; BLACKPINK's full-group DEADLINE stadium tour, BABYMONSTER's world tour and the September debut of a new boy group are set to feed into second-half results in sequence. The notable points right now are that the second-half contribution of large tours, an expanding lineup, a net-cash position and strong cash generation are strengths, while results swing heavily on the activity of a handful of large groups so a slipped schedule delays the profit contribution and a gap in the year after an activity peak can make profit choppy, an industry trait; and that on this year's expected earnings the valuation burden clearly eases.
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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 “Entertainment (Agencies)” (Games, Entertainment & Content), a type typically read first through forward P/E.
Entertainment agencies' future results depend heavily on their artists' activity, new debuts, and content expansion, so expected profits explain the share price better than past earnings. That's why forward P/E — based on projected net income — comes before the trailing figure.
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
- Debt ratio, current ratio and interest burden all look healthy.
- Revenue rose 49.5% year over year, and the pace is quickening (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 46.9% higher than a year earlier.
- ROE is 7.1% (controlling-interest basis). It is above the sector average.
- Operating margin is 13.7%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Yang Hyun-suk 19.33% (individual)
Controlling bloc incl. related parties 22.95%
With the controlling bloc holding 23%, control is maintained but the free float is relatively large.
🔎 In-depth analysis Reading
YG Entertainment is a K-pop agency that develops idol groups and earns money from their activities. Revenue comes in three main streams. The first is album and music sales. The second is concert tickets and merchandise (MD) sold at venues. The third is ancillary income such as broadcast appearance fees, advertising and image rights. Its flagship groups are BLACKPINK, BABYMONSTER and TREASURE, and its subsidiary YG Plus handles the album-distribution and MD businesses. This company's results swing widely depending on whether its artists release albums and run world tours in a given year. Stadium-scale tours in particular lift concert revenue together with high-margin MD revenue, pushing profit up in a stepwise fashion.
The latest close is ₩40,600 and the market capitalization is ₩758.9 billion. The price sits above its 20-day moving average (₩39,728) and below its 60-day moving average (₩43,108). 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 50.0, a neutral level. The one-month change is -8.1%, the three-month change is -20.9%, and the position relative to the 52-week high is -62.2%. Relative strength versus the KOSDAQ is 35 (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 35% of all stocks. Over the past three months it outpaced the index by 20.7%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
On last year's results the valuation metrics look expensive. The P/E ratio (how many times one year's profit the share price is) is 20.57x, high relative to earnings. That said, this is a company whose profit swings widely from year to year. Judging by a single year's figures invites a misread. The P/B (how many times net assets the share price is) is 1.48x, not excessive. The balance sheet is solid. Net debt (total borrowings less cash; a negative figure means net cash) is -162.4 billion won, meaning it holds more cash than debt. The free-cash-flow yield (the ratio of actual cash generated to market cap; higher means greater cash-generation appeal) is a fairly high 10.2%. Debt-inclusive metrics improve the picture further. EV/EBIT (enterprise value divided by operating profit; a debt-inclusive counterpart to P/E) is 9.2x, far below the P/E of 22x, because the large cash on hand makes actual enterprise value smaller than the market cap. ROE (how much is earned in a year on equity) is 7.2%, still not high, which should be viewed in light of profit being in the early stage of recovery.
The texture of growth is 'recovery.' 2024 was a trough year in which operating profit fell into the red (-20.6 billion won) amid a gap in large tours. In 2025 revenue rose 49.5% to 545.4 billion won. Net profit also nearly doubled (+99.3%) to 36.9 billion won, returning to a normal track. It still falls short of 2023, however (net profit 61.3 billion won). Q1 2026 revenue rose 46.9% year over year to 147.1 billion won. Operating profit more than doubled (+103.9%) to 19.4 billion won. There is an important point here. BLACKPINK's full-group stadium world tour, the largest revenue source, feeds into the second half in earnest. In other words, the Q1 scorecard is a figure taken before the large tours are booked. In the second half the BLACKPINK tour, BABYMONSTER's world tour, TREASURE's new release and a new boy group's debut overlap. So annual profit has ample room to climb higher than the first-half trend suggests. On last year's results the P/E looks high, but on this year's expected earnings the burden shrinks considerably.
Disclosures and official company announcements point to 2026 as the year of highest activity density. In May the company disclosed Q1 results. The profitable footing continued, with both revenue and operating profit rising sharply. At the March annual shareholders' meeting it set a cash dividend of 300 won per share. According to official company announcements, BLACKPINK's full group is running its 'DEADLINE' stadium world tour, setting large-concert records including two consecutive sold-out nights at SoFi Stadium in the United States. BABYMONSTER released its third mini-album in May and set out on its second world tour from June. TREASURE is preparing a new second-half release. YG has previewed the debut of a new five-member boy group in September, its first in six years. These schedules feed into second-half results in sequence.
The points to watch are clear. The condition for strength is the second-half contribution of BLACKPINK's full-group stadium tour. If concert tickets and high-margin MD revenue rise together, profit can jump in a stepwise fashion. On top of that, activity from BABYMONSTER and TREASURE and the new debut broaden the lineup, reducing reliance on any single group. The balance sheet, in net cash with good cash generation, has ample capacity to support the activity. The condition for weakness, conversely, is a delayed tour schedule or specific-artist risk. This company's results swing heavily on the activity of a handful of large groups. If the schedule slips, the timing of the profit contribution slips with it. And if a gap opens in the year after an activity peak, profit can turn choppy again. This is a structural trait of the industry. In sum, the figures look expensive on last year's numbers but the burden clearly eases on this year's expected earnings, a phase where results and the share price have diverged.
🔎 Valuation vs peers Undervalued
The peer set of large domestic listed K-pop agencies (entertainment), i.e. listed companies with a similar artist-activity-based revenue structure.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| JYP Entertainment | 10.43x | 2.68x | 19.68% |
| SM Entertainment | 4.86x | 1.69x | 13.12% |
| HYBE | 0.00x | 2.35x | -7.29% |
On last year's results alone, the P/E of 22.2x is higher than the peer set (JYP 12.3x, SM 5.2x). But this reading has limits. YG Entertainment is an inflection-point company that swung from an operating loss amid a 2024 large-tour gap to a profit in 2025. So the low profit of that single year enters the denominator and makes the P/E look inflated. This year is an activity-peak year, with BLACKPINK's full-group stadium world tour feeding into the second half in earnest. Operating profit already doubled in Q1. On this year's expected earnings, the multiple falls to around, or below, the peer level. Adding the net-cash position and high cash generation (free-cash-flow yield 10.2%), it is reasonable to read the stock as undervalued on this year's results, in contrast to the expensive appearance from last year's numbers.
Price history Close · MA20 · MA60
The latest close is ₩40,600 and the market capitalization is ₩758.9 billion. The price sits above its 20-day moving average (₩39,728) and below its 60-day moving average (₩43,108). 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 50.0, a neutral level. The one-month change is -8.1%, the three-month change is -20.9%, and the position relative to the 52-week high is -62.2%. Relative strength versus the KOSDAQ is 35 (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 35% of all stocks. Over the past three months it outpaced the index by 20.7%. 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 +20.74% / 6M -20.42% / 12M -49.31%
Key metrics Computed vs sector median
Valuation
The P/E is 20.57x. The P/B of 1.48x is below the sector median (1.92x). 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 7.1%, above the sector average (5.0%). The operating margin is 13.7%. The debt ratio is 41.6%, so the financial structure is stable.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $399.9M | $256.4M | $383.1M | +49.45% ↑ faster |
| Operating profit | $61.1M | -$14.4M | $50.1M | — |
| Net profit | $43.1M | $13.0M | $25.9M | +99.25% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $226.0M | $274.8M | $399.9M | $256.4M | $383.1M |
| Operating profit | $33.0M | $32.8M | $61.1M | -$14.4M | $50.1M |
| Net profit | $4.7M | $23.7M | $43.1M | $13.0M | $25.9M |
| Revenue CAGR | 4-yr avg 14.11% | ||||
Revenue rose 49.5% year over year (2023 ₩569.2 billion → 2024 ₩364.9 billion → 2025 ₩545.4 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 14.1%. The two-year revenue CAGR is -2.1%. In the most recent quarter (Q1 2026), revenue was 46.9% higher than the same period a year earlier.
Latest quarterly results Source Q1 2026 · vs year-ago
Technical indicators Computed
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- Revenue grew 49.5% 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
- 2026-05-15FilingFiling of the Q1 2026 quarterly report. Revenue of 147.1 billion won (+46.9% year over year) and operating profit of 19.4 billion won (+103.9%), a continued profitable footing.Even before large tours are booked, operating profit doubled, confirming the recovery is continuing. A foundation for the full swing into second-half tours. Source
- 2026-05-08EarningsDisclosure of preliminary Q1 2026 operating results on a consolidated basis. Sharp increases in revenue and operating profit.Confirms the near-term results direction. A profitable footing and double-digit revenue growth are maintained. Source
- 2026-03-27DividendCash dividend of 300 won per share set at the annual shareholders' meeting (dividend yield about 0.7%, payout ratio about 15%).Shareholder returns are maintained during the profit-recovery phase. The dividend size is modest but reflects balance-sheet strength. Source
- 2026-04-21UpdateFiling of a large-holdings report (general). A change occurred in a major shareholder's stake.A reference point on the supply-demand side. Depending on the holder and the direction of the change, it could affect future supply-demand. Source
- 2026-06-01IROfficial announcement of 2026 activity plans, including BLACKPINK's full-group 'DEADLINE' stadium world tour and the start of BABYMONSTER's second world tour, plus the September debut of a new five-member boy group.The key driver of second-half concert and MD revenue. High-margin stadium tours can lift profit in a stepwise fashion. Source
Figure cross-check computed ↔ external
| Metric | Computed | External | Status | Source |
|---|---|---|---|---|
| 2025 revenue and net profit | revenue 5,454 / net profit 369 | revenue 5,454 / net profit 369 | Confirmed | link |
| Q1 2026 results | revenue 1,471 / operating profit 194 / net profit 98 | revenue 1,471 / operating profit 194 | Confirmed | link |
| 2026 expected net profit (in-house estimate) | approx. 780 | — | Unverified | link |
Recent filings Source
- 2026-05-15PeriodicQuarterly report
- 2026-05-08EarningsFair-disclosure notice
- 2026-04-21OwnershipOwnership-change filing
- 2026-04-01OwnershipOwnership-change filing
- 2026-03-27Disclosure
- 2026-03-27Shareholders' meeting notice
- 2026-03-23PeriodicAnnual business report (amended)
- 2026-03-19PeriodicAnnual business report
- 2026-03-19Audit report
- 2026-03-12Amended filing
- 2026-03-12Disclosure
- 2026-03-12Shareholders' 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.