Update shared on 27 Nov 2025
Fair value Increased 1.88%Narrative Update on Kakao: Analyst Price Target Revision
Analysts have raised Kakao's fair value estimate from 75,250 KRW to 76,666.67 KRW. This revision reflects improved profit margin expectations and a lower anticipated future price-to-earnings ratio, even though revenue growth forecasts have been moderated.
What's in the News
- Kakao held a Board Meeting on November 19, 2025 to discuss the purpose of external investment, review transaction structure and price, and address other matters. (Key Developments)
- Kakao released fourth quarter 2025 earnings guidance, anticipating comfortable double-digit year-over-year growth in Talk Biz advertising revenue. The company also expects overall revenue growth to accelerate due to deferred transactions from the previous quarter and a seasonal boost. (Key Developments)
Valuation Changes
- Fair Value Estimate: Increased modestly from ₩75,250 to ₩76,666.67.
- Discount Rate: Decreased slightly from 8.68% to 8.68%.
- Revenue Growth Forecast: Lowered from 9.43% to 8.80%.
- Net Profit Margin: Risen from 8.23% to 9.35%.
- Future P/E Ratio: Reduced from 50.84x to 45.51x.
Disclaimer
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