Valuation Analysis of HYBE Co., Ltd.

HYBE Co. Ltd is considered as a strong player in the Korean entertainment industry since they record an all-time highest operating profit of 130.1 billion won in 2020, surpassing all of the other publicly-listed companies in the industry, namely SM, YG and JYP Entertainment. However, a lot of investors claim that HYBE Co., Ltd.'s stocks are overvalued. This study aims to estimate the intrinsic value per share of HYBE Co. Ltd., and determine whether the share price of the company is undervalued or overvalued. The methodology that is used for this research is Discounted Cash Flow with Free Cash Flow to the Firm method. The result of the valuation is an intrinsic value for HYBE Co., Ltd. of KRW109,677, which is less than the market share price of KRW160,000. Therefore, the company is overvalued by the market, in which the author will provide recommendations for investors. Keywords: Free Cash Flow to the Firm, HYBE Co., Ltd, Valuatio