VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD
The rapid rise in popularity of the Korean Wave (Hallyu) of South Korean entertainment and culture, is sweeping the globe. 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, surpas...
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id-itb.:610662021-09-22T21:49:13ZVALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD Aunura Ramadhanti P., Qinthara Indonesia Final Project Free Cash F/low to the Firm, HYBE Co., Ltd, Valuation INSTITUT TEKNOLOGI BANDUNG https://digilib.itb.ac.id/gdl/view/61066 The rapid rise in popularity of the Korean Wave (Hallyu) of South Korean entertainment and culture, is sweeping the globe. 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, despite performing the best compared to their competitors, HYBE is perceived to be overvalued. Therefore, further assessment is important to conduct in order to know whether the company is overvalued or undervalued. The methodology that is used for this research is Discounted Cash Flow with Free Cash Flow to the Firm method. According to the result, the intrinsic value for HYBE Co., Ltd. is KRW109,677 which is less than the share price of KRW160,000. Therefore, the company is overvalued by the market, in which the author will provide recommendations for investors text |
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The rapid rise in popularity of the Korean Wave (Hallyu) of South Korean entertainment and
culture, is sweeping the globe. 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, despite performing the best compared to their competitors, HYBE
is perceived to be overvalued. Therefore, further assessment is important to conduct in order to
know whether the company is overvalued or undervalued.
The methodology that is used for this research is Discounted Cash Flow with Free Cash Flow to
the Firm method. According to the result, the intrinsic value for HYBE Co., Ltd. is KRW109,677
which is less than the share price of KRW160,000. Therefore, the company is overvalued by the
market, in which the author will provide recommendations for investors |
format |
Final Project |
author |
Aunura Ramadhanti P., Qinthara |
spellingShingle |
Aunura Ramadhanti P., Qinthara VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD |
author_facet |
Aunura Ramadhanti P., Qinthara |
author_sort |
Aunura Ramadhanti P., Qinthara |
title |
VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD |
title_short |
VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD |
title_full |
VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD |
title_fullStr |
VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD |
title_full_unstemmed |
VALUATION OF HYBE CO. LTD. USING FREE CASH FLOW TO THE FIRM METHOD |
title_sort |
valuation of hybe co. ltd. using free cash flow to the firm method |
url |
https://digilib.itb.ac.id/gdl/view/61066 |
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