# Krafton (259960.KO)

Canonical: https://gigainvestors.com/s/259960.KO

Analysis as of: 2026-10-16T07:36:57.867Z. Financial observations: FY2018–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

A wonderful business at a fair price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: yes.

Share price: KRW 193,300.00 per share; close as of 2026-10-15.

Estimated value: low KRW 388,958.18 per share, central KRW 433,467.90 per share, high KRW 492,719.78 per share. Buy at or below the central value KRW 433,467.90 per share. Valuation as of 2026-10-16T07:36:57.867Z; scenarios are not confidence intervals.

Expected annual return: 24.2% at the stated quote. About 24.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 9 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.27×

- FY2019: 0.49×

- FY2020: 0.46×

- FY2021: 0.34×

- FY2022: 0.41×

- FY2023: 0.40×

- FY2024: 0.44×

- FY2025: 0.32×

- LTM to Jun 2026: 0.30×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 42.0%

- ROIC, second-lowest year: 24.0%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 100.0%

- Recent gross margin (lower of latest and 3-year median): 100.0%

- Years with nonpositive capital: 1

- Capital spending / revenue: 1.8%

- ROIC including acquisitions, ten-year median: 24.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: >100%

- FY2019: >100%

- FY2020: >100%

- FY2021: 48.4%

- FY2022: 35.6%

- FY2023: 24.0%

- FY2024: 32.4%

- FY2025: 23.9%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 3.63T

- Net income, five-year total: KRW 3.66T

- Return on incremental invested capital: 57.7%

- Working capital / revenue, annual change: 7.3 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.78×

- FY2022: 1.07×

- FY2023: 1.06×

- FY2024: 1.03×

- FY2025: 0.97×

### management: pass

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 159.9% vs 24.0%

- Per-share earnings: 13532.29 to 16299.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 1.9%

- Diluted shares, 5-year annual growth: 1.9%

- Per-share value growth: 3.8%

- Per-share value change: KRW 3K

- Per-share value, starting three-year median: KRW 14K

- Per-share value, ending three-year median: KRW 16K

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 2.1%

- Buyback history: 3 years

- ROIC, first three-year median: >100%

- ROIC, last three-year median: 24.0%

Chart: Earnings per share; fiscal year observations.

- FY2018: KRW 6K

- FY2019: KRW 14K

- FY2020: KRW 14K

- FY2021: KRW 11K

- FY2022: KRW 11K

- FY2023: KRW 13K

- FY2024: KRW 28K

- FY2025: KRW 16K

### accounting: pass

- Sloan accruals: -3.3%

- Receivables to sales index (DSRI): 1.08×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 4.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.42×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.26×

Chart: Sloan accruals; fiscal year observations.

- FY2018: 15.0%

- FY2019: 26.2%

- FY2020: -5.4%

- FY2021: -3.4%

- FY2022: -0.2%

- FY2023: -1.0%

- FY2024: 5.0%

- FY2025: -3.3%

## Holders

## Price story

Down 62% since Nov 2021 · sales +33.8%

Story as of 2026-10-16T10:00:08.402Z; price observation 2026-10-15.

Price needs cash profits to shrink 12.6% a year for ten years

### Sales · FY2025–2026

sales +33.8%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2018: KRW 1.12T 

- FY2019: KRW 1.52T 

- FY2020: KRW 1.67T 

- FY2021: KRW 1.89T 

- FY2022: KRW 1.85T 

- FY2023: KRW 1.91T 

- FY2024: KRW 2.71T 

- FY2025: KRW 3.33T 

- FY2026: KRW 4.45T 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electronic gaming & multimedia; annual sales are KRW 3.3 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2025: revenue 3326553694960; grossProfit 3326553694960; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 259960.KO: KRAFTON, Inc. engages in the software development and related ancillary businesses in Asia, Korea, the United States, Europe, and internationally. The company offers PC, mobile, console, and other games. It is also involved in development and distribution of mobile games and applications, and game software business; consulting advisory and investment activities; production of video contents; and development and servicing of games. The company was formerly known as Bluehole Studio Inc. and changed its name to KRAFTON, Inc. in November 2018. KRAFTON, Inc. was incorporated in 2007 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 100% to 100% during 2023–25; it earns 42% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2023: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2024: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2025: grossProfit / revenue = 100%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); 8-year return on capital observations [[2018,2.609093094761497],[2019,1.5994956582135191],[2020,1.1603050707855247],[2021,0.48374847955100725],[2022,0.3557629598295349],[2023,0.23952447948075598],[2024,0.32409065907689893],[2025,0.2389577202866681]]; median 0.41975571969027103. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid no dividends in 2 years; bought back KRW 326.1 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2018: growth capex 0; upkeep 26202614910; owner earnings 230383239090. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2019: growth capex 0; upkeep 19685579720; owner earnings 571809514080. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2020: growth capex 0; upkeep 29184483240; owner earnings 553948207060. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2021: growth capex 21375948135.56076; upkeep 146696544094.43924; owner earnings 406088008055.5608. Growth capex / owner earnings = 0.05263870814091145.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2022: growth capex 0; upkeep 33700972030; owner earnings 534521693680. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2023: growth capex 0; upkeep 35560498940; owner earnings 628464694280. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2024: growth capex 0; upkeep 26684972340; owner earnings 1347654292180. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2025: growth capex 0; upkeep 102013669460; owner earnings 715100602390. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); Dividend observations: [[2021,0],[2022,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); FY2025: cash repurchases 326083307910 KRW.

### Are managers owners

Insiders own 37.9% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 259960.KO SharesStats.PercentInsiders = 37.864 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits shrink 12.6% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:36:57.867Z); Ten-year compound average after fade. Initial solved rate -0.18835410922815793. Price 193300; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2021-08: KRW 491,500.00 per share

- 2021-09: KRW 502,000.00 per share

- 2021-10: KRW 469,500.00 per share

- 2021-11: KRW 503,000.00 per share

- 2021-12: KRW 460,000.00 per share

- 2022-01: KRW 274,500.00 per share

- 2022-02: KRW 295,000.00 per share

- 2022-03: KRW 275,500.00 per share

- 2022-04: KRW 252,000.00 per share

- 2022-05: KRW 259,500.00 per share

- 2022-06: KRW 219,000.00 per share

- 2022-07: KRW 233,500.00 per share

- 2022-08: KRW 246,500.00 per share

- 2022-09: KRW 210,000.00 per share

- 2022-10: KRW 177,500.00 per share

- 2022-11: KRW 227,000.00 per share

- 2022-12: KRW 168,000.00 per share

- 2023-01: KRW 179,300.00 per share

- 2023-02: KRW 169,800.00 per share

- 2023-03: KRW 183,500.00 per share

- 2023-04: KRW 192,100.00 per share

- 2023-05: KRW 189,100.00 per share

- 2023-06: KRW 194,800.00 per share

- 2023-07: KRW 171,800.00 per share

- 2023-08: KRW 155,000.00 per share

- 2023-09: KRW 150,600.00 per share

- 2023-10: KRW 163,800.00 per share

- 2023-11: KRW 213,000.00 per share

- 2023-12: KRW 193,600.00 per share

- 2024-01: KRW 214,500.00 per share

- 2024-02: KRW 227,000.00 per share

- 2024-03: KRW 247,000.00 per share

- 2024-04: KRW 239,500.00 per share

- 2024-05: KRW 250,000.00 per share

- 2024-06: KRW 281,500.00 per share

- 2024-07: KRW 294,000.00 per share

- 2024-08: KRW 327,000.00 per share

- 2024-09: KRW 342,500.00 per share

- 2024-10: KRW 331,000.00 per share

- 2024-11: KRW 312,000.00 per share

- 2024-12: KRW 312,500.00 per share

- 2025-01: KRW 364,000.00 per share

- 2025-02: KRW 343,500.00 per share

- 2025-03: KRW 334,500.00 per share

- 2025-04: KRW 371,500.00 per share

- 2025-05: KRW 369,000.00 per share

- 2025-06: KRW 363,000.00 per share

- 2025-07: KRW 328,500.00 per share

- 2025-08: KRW 327,500.00 per share

- 2025-09: KRW 292,500.00 per share

- 2025-10: KRW 276,000.00 per share

- 2025-11: KRW 257,500.00 per share

- 2025-12: KRW 246,000.00 per share

- 2026-01: KRW 254,000.00 per share

- 2026-02: KRW 248,500.00 per share

- 2026-03: KRW 255,000.00 per share

- 2026-04: KRW 265,000.00 per share

- 2026-05: KRW 257,500.00 per share

- 2026-06: KRW 236,000.00 per share

- 2026-07: KRW 243,000.00 per share

- 2026-08: KRW 227,000.00 per share

- 2026-09: KRW 194,900.00 per share

- 2026-10: KRW 190,000.00 per share

## Annual estimated value (KRW per share)

- FY2022: low KRW 190,073.43 per share, central KRW 207,107.11 per share, high KRW 229,782.55 per share

- FY2023: low KRW 212,830.86 per share, central KRW 233,114.02 per share, high KRW 260,115.22 per share

- FY2024: low KRW 294,865.65 per share, central KRW 324,058.44 per share, high KRW 362,920.24 per share

- FY2025: low KRW 304,481.02 per share, central KRW 336,542.34 per share, high KRW 379,222.76 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations