[Click e-Stock] "Pinkfong's IPO Price Range Deemed Appropriate"

On October 28, DB Financial Investment analyzed that the proposed IPO price range for The Pinkfong Company, which is seeking to list on the KOSDAQ market, is appropriate.

Shin Eunjeong, a researcher at DB Financial Investment, stated, "The proposed IPO price range is between 32,000 and 38,000 won," and explained, "This was calculated by applying the average EV/EBITDA multiple of 19.87 times, based on the corporate value of SAMG Entertainment, KADOKAWA CORPORATION, SANRIO, and TOEI ANIMATION."

She continued, "If we work backward from The Pinkfong Company's estimated market capitalization of 459.2 billion to 545.3 billion won, the EV/EBITDA comes out to 17 to 21 times," adding, "This is similar to the expected EV/EBITDA levels of SAMG Entertainment and TOEI ANIMATION for this year."

She analyzed, "SAMG Entertainment's price-to-earnings ratio (PER) for this year is around 15 to 20 times," and further noted, "If we exclude one-off non-operating factors, it could be assumed at 20 to 25 times." She added, "The Pinkfong Company has presented an expected operating profit of 28.1 billion won for next year," and explained, "If we apply SAMG Entertainment's PER, excluding one-off factors for this year, to Pinkfong's projected net profit for 2026, the expected market capitalization would be similar to the 459.2 billion to 545.3 billion won range."

Researcher Shin commented, "The valuation does not appear to be excessively high," but added, "However, it will be important to monitor the company's ability to meet future earnings forecasts."