Pearl Abyss develops its own games and operates them worldwide. Its long-standing cash cow is the MMORPG Black Desert, and its subsidiary CCP Games runs EVE Online; the open-world action-adventure title Crimson Desert, launched in March 2026, has now joined as a fresh growth driver. Crimson Desert alone generated ₩266.5 billion in revenue in Q1 (81% of the quarter's total), and the company has issued full-year guidance of ₩879.0 billion-₩975.4 billion in revenue and ₩487.6 billion-₩572.6 billion in operating profit, alongside its first-ever dividend and the retirement of roughly 50% of its treasury shares. The point worth watching is that, on the company's own official profit outlook, the multiple looks relatively low and shareholder returns have now begun, but because Crimson Desert is a package-sale title its launch window is the peak, with a natural decline expected afterward, so how long the company can extend the sales curve through DLC and follow-up content is the key to any re-valuation.
At-a-glance assessment financial health · growth · profitability · valuation
- The most recent full-year net result was a loss.
- Revenue rose 6.8% year over year, and the pace is quickening (3-year trend: rising).
- Most recent quarter (Q1 2026) revenue was 419.6% higher than a year earlier.
- ROE is -1.1% (controlling-interest basis). It is below the sector average.
- Operating margin is -4.0%.
- The forward P/E sits below the sector median.
Ownership & governance As of 2025-12-31
Largest shareholder Kim Dae-il 36.66% (individual)
Controlling bloc incl. related parties 37.19%
With the controlling bloc holding 37%, the ownership structure is stable.
🔎 In-depth analysis
- Pearl Abyss is a game company that develops its own titles and services them worldwide.
- Its long-standing cash cow, the MMORPG Black Desert (PC, mobile and console), has delivered steady revenue, while CCP Games, a subsidiary acquired in 2018, operates the space MMO EVE Online.
- The overwhelming majority of revenue comes from game access fees and item sales, with overseas markets accounting for a particularly large share.
- Crimson Desert, an open-world action-adventure title (a console and PC package release) launched on March 19, 2026, has joined as a major new growth driver: in Q1 alone, Crimson Desert by itself brought in ₩266.5 billion, or 81% of the quarter's total revenue.
- The latest close is ₩36,450 and market capitalization is ₩2.3 trillion.
- The price sits below its 20-day moving average (₩37,570) and below its 60-day line (₩45,984).
- Trading below both the short- and mid-term moving averages, the trend is on the soft side.
- The RSI (an indicator that gauges upward versus downward momentum over the past 14 days on a 0-100 scale) is 38.8, a neutral level.
- The one-month change is -9.1%, the three-month change is -36.5%, and the price sits -49.4% from its 52-week high.
- Relative strength versus the KOSDAQ is 71 (on a 1-99 scale that weights recent returns against the index over the past year more heavily toward the recent period; higher means stronger than the market), placing it in roughly the top 28% of all stocks by strength.
- Over the past three months it lagged the index by 11.5%.
- Chart readings are best considered alongside trading volume and disclosure dates.
- Looking only at full-year 2025 results, revenue was ₩365.6 billion with an operating loss of -₩14.8 billion and a net loss of -₩8.4 billion.
- As a result the P/E ratio (how many times a year's net profit the share price represents) is not calculable, the P/B (how many times book equity the share price represents) is 2.93x, and EPS is -₩131.
- The debt ratio (borrowings relative to equity) is 143.8% and the current ratio (assets readily convertible to cash relative to debt due within a year) is 328%, so the balance sheet itself is solid.
- The key point, however, is that these prior-year figures are numbers from before the Crimson Desert launch.
- Immediately after the release, in Q1 2026, revenue was ₩328.5 billion, operating profit ₩212.1 billion and net profit ₩170.0 billion, swinging straight into the black; judging the present on the loss-based prior-year P/B and loss figures alone would miss the company's actual earnings power.
- Revenue moved from ₩403.8 billion in 2021 to ₩385.7 billion in 2022, ₩333.5 billion in 2023, ₩342.4 billion in 2024 and ₩365.6 billion in 2025 - gently pressured during Black Desert's aging phase before a modest recovery in 2024-2025.
- Operating results were in the red for three straight years from 2023 to 2025, a phase weighed down by heavy new-title development costs.
- The inflection point is Q1 2026.
- With the launch of Crimson Desert, revenue rose 419.8% year on year and operating profit surged 2,584.8%, delivering the best quarterly results in the company's history.
- Crimson Desert sold 5 million copies within a month of launch, with a 50:50 console-to-PC split and 94% of sales from overseas (81% of that from North America and Europe), marking a major hit in Western markets.
- The company's own 2026 full-year outlook calls for ₩879.0 billion-₩975.4 billion in revenue and ₩487.6 billion-₩572.6 billion in operating profit, so the swing from last year's loss to a large profit is backed by the company's official numbers.
- On an earnings basis against that official outlook, the current market cap (about ₩2.4 trillion) is only around six times this year's expected profit; unlike the loss-based prior-year figures that look elevated, on this year's earnings the stock trades at a rather low multiple.
- The global launch of Crimson Desert on March 19, 2026 is the starting point for everything.
- On May 12 the company disclosed its Q1 preliminary results (fair disclosure) together with its own Q2 and full-year outlook (fair disclosure), issuing strong guidance of ₩879.0 billion-₩975.4 billion in revenue and ₩487.6 billion-₩572.6 billion in operating profit for the year.
- On June 9 it announced a corporate value-up plan (voluntary disclosure) approved by the board, introducing its first-ever dividend (the greater of ₩10.0 billion per year or 10% of net profit), retiring roughly 50% of its treasury shares, and signaling further treasury-share purchases in the second half.
- A surge in earnings and stronger shareholder returns thus overlapped in the same quarter.
- The favorable case is clear.
- Crimson Desert scored a major hit in Western console and PC markets, and as a result the company itself issued guidance for a large profit this year, while shareholder returns have begun with a first dividend and treasury-share retirement.
- Because the loss-based prior-year figures mean the share price has yet to fully reflect earnings, the multiple is relatively low on the company's own official profit outlook for this year.
- The cautions are equally clear.
- Crimson Desert is centered on package sales rather than item-based monetization, so sales peak in the launch window and a natural decline is expected in later quarters (the company's own Q2 guidance is lower than Q1).
- The key questions, then, are how long the company can extend the sales curve through DLC, follow-up content and additional platform ports, and whether Black Desert continues to serve as a stable base.
- Ultimately this year's profit is backed by the official outlook, but the durability of that profit is the key to any re-valuation of the shares.
🔎 Valuation vs peers Undervalued
Compared against major domestic game makers that develop and globally service their own titles based on proprietary IP.
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| NCSOFT | 15.51x | 1.60x | 10.30% |
| Netmarble | 13.93x | 0.58x | 4.14% |
| Nexon Games | — | 2.27x | -24.26% |
On a 2025 basis the P/E is not calculable due to the loss, and the 3.04x P/B looks high, but these are metrics from the loss phase before Crimson Desert launched and do not reflect the company's current earnings power. Placing the company's own 2026 operating-profit outlook (₩487.6 billion-₩572.6 billion) on an earnings basis, the current market cap (about ₩2.4 trillion) is only around six times this year's expected profit. Compared with steadily profitable major domestic game makers such as NCSOFT (a P/E of about 15.9x) and Netmarble (about 13.8x) trading at double-digit multiples, Pearl Abyss trades at a distinctly lower multiple on this year's earnings. That said, because Crimson Desert is centered on package sales rather than item monetization, the condition for the multiple to normalize is how well this profit level holds up in subsequent quarters. Taken together, rather than calling the stock expensive on the loss-based prior-year figures alone, it is reasonable to read it as undervalued on the company's official earnings basis for this year.
Earnings outlook company-stated · verified
| Type | Period | Revenue | Operating profit | Net profit |
|---|---|---|---|---|
| This year | 2026 | 8,790~₩975.4 billion | 4,876~₩572.6 billion | — |
| Next quarter | Q2 2026 | 2,713~₩324.7 billion | 1,296~₩176.7 billion | — |
Price history Close · MA20 · MA60
The latest close is ₩36,450 and the market capitalization is ₩2.3 trillion. The price sits below its 20-day moving average (₩37,570) and below its 60-day moving average (₩45,984). 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 38.8, a neutral level. The one-month change is -9.1%, the three-month change is -36.5%, and the position relative to the 52-week high is -49.4%. Relative strength versus the KOSDAQ is 71 (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 72% of all stocks. Over the past three months it lagged the index by 11.5%. 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 -11.45% / 6M +14.88% / 12M -13.08%
Key metrics vs sector median
Valuation
A net loss makes the P/E an unreliable valuation gauge. The P/B of 2.93x is above the sector median (1.58x).
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 -1.1%, below the sector average (10.0%). The operating margin is -4.0%. The debt ratio is 143.8%, so the financial structure is moderate.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $221.0M | $226.9M | $242.3M | +6.77% ↑ faster |
| Operating profit | -$10.8M | -$8.1M | -$9.8M | — |
| Net profit | $10.1M | $40.0M | -$5.6M | -113.95% ↓ slower |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $267.6M | $255.6M | $221.0M | $226.9M | $242.3M |
| Operating profit | $28.5M | $10.9M | -$10.8M | -$8.1M | -$9.8M |
| Net profit | $39.3M | -$28.5M | $10.1M | $40.0M | -$5.6M |
| Revenue CAGR | 4-yr avg -2.46% | ||||
Revenue rose 6.8% year over year (2023 ₩333.5 billion → 2024 ₩342.4 billion → 2025 ₩365.6 billion), and the three-year trend is 'rising'. The pace of growth also quickened from the prior year. Operating results are in the red, so a swing back to profit matters more than the growth rate here. Over the 5 years on record, revenue compound annual growth (CAGR) is -2.5%. The two-year revenue CAGR is 4.7%. In the most recent quarter (Q1 2026), revenue was 419.6% higher 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.
Points to watch
- The most recent full year was a loss, so it is worth checking whether profitability recovers.
Recent news & events searched · sourced
- 2026-03-19IRGlobal launch of the new open-world action-adventure title Crimson Desert (console and PC package). Sold 5 million copies within Q1, contributing ₩266.5 billion in revenue.The core growth driver that sharply lifted short- and mid-term results, expanding the overseas (North America and Europe) share of revenue. Source
- 2026-05-12EarningsQ1 2026 preliminary results (fair disclosure): revenue ₩328.5 billion (+419.8% YoY), operating profit ₩212.1 billion (+2,584.8%), net profit ₩170.0 billion, swinging into the black.Officially confirms the earnings inflection from last year's loss to a large profit. Source
- 2026-05-12FilingOutlook for consolidated operating results (fair disclosure): full-year 2026 revenue ₩879.0 billion-₩975.4 billion, operating profit ₩487.6 billion-₩572.6 billion; Q2 revenue ₩271.3 billion-₩324.7 billion, operating profit ₩129.6 billion-₩176.7 billion.Presents a large profit for the year in the company's official numbers, with Q2 reflecting a natural decline from Q1. Source
- 2026-06-09DividendCorporate value-up plan (voluntary disclosure): introduction of the first-ever dividend (the greater of ₩10.0 billion per year or 10% of net profit), retirement of roughly 50% of treasury shares, and signaling of treasury-share purchases in the second half.A shift in capital allocation through a newly established shareholder-return policy; supportive for mid-term supply-demand and investor sentiment. Source
- 2026-06-09FilingDecision to enter a treasury-share acquisition trust agreement and to retire shares.Enhances per-share value through the actual purchase and retirement of treasury shares. Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-09TreasuryMaterial-fact report
- 2026-06-09Disclosure
- 2026-06-09Disclosure
- 2026-05-26Disclosure
- 2026-05-15PeriodicQuarterly report
- 2026-05-12Fair-disclosure notice (amended)
- 2026-05-12Fair-disclosure notice
- 2026-05-12EarningsFair-disclosure notice
- 2026-05-12Disclosure
- 2026-04-30Disclosure
- 2026-04-10EarningsEarnings disclosure
- 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.