[Click eStock] "Nomus, Undervalued Stock Price in the Entertainment Sector"

On the 16th, Korea Investment & Securities evaluated that Nomus's stock price is undervalued compared to the average multiple of the entertainment industry.

Nomus, which was listed last month, provides solutions such as performances and content production to entertainment companies and operates 'From,' a communication platform with K-pop artists. It acts on behalf of small and medium-sized entertainment companies that lack internal capabilities in overseas performances, merchandise (MD), and content production, sharing profits with them. 'From' holds intellectual property (IP) rights for more than 300 K-pop artists, actors, and models, including ATEEZ and Cha Eun-woo, with sales distribution of 37% from performances, 25% from MD, 20% from the platform, and 18% from others.

Andoyoung Ahn, a researcher at Korea Investment & Securities, stated, "The increase and growth of small and one-person agencies are expected to lead to the expansion of Nomus's scale. Nomus provides various services such as performances, MD, content, and platforms all at once to small and medium-sized entertainment companies, making it efficient from the entertainment companies' perspective. It maximizes the revenue that IP can generate and shares the upside, while maintaining low risk through a diverse IP portfolio, which is an advantageous business structure."

Researcher Ahn added, "The operating profit guidance is 11 billion KRW this year and 30.8 billion KRW next year, and the current stock price is at a 10 times price-to-earnings ratio (PER) based on the 2025 guidance. Considering that the average multiple of the entertainment industry is around 20 times, the stock price is significantly undervalued. Next year's earnings growth will be driven by an increase in the IP lineup and the expansion of tour scale," he predicted.