4 models fit GRAVITY Co. Ltd. American Depository Shares and they disagree: 1 of 4 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Silver72
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionGRAVITY Co. Ltd. American Depository Shares (GRVY)
Fair value (4 models)
$101
ACCE price target
$69.00
Rating
Undervalued
Horizon
12 months
Fair value published on 18 Oct 2026, 00:00 CEST; previously $89.18 since 13 Oct 2026, 00:00 CEST.
ACCE price target published on 15 Oct 2026, 00:00 CEST.
Price used: $67.01 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, Dividend discount, EV/EBITDA comparison, Graham number, and P/E comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
33.6% below
+50.5% to fair value
ACCE score
70
out of 100
P/E
7.9x
1-year return
+15.0%
Dividend yield
4.84%
GRAVITY Co. Ltd. American Depository Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
GRAVITY develops and publishes online games, most notably Ragnarok Online and its mobile successors, with the franchise still generating most of its revenue in Asian markets. The moat is the age and depth of that IP: a long-running title with a loyal player base and a live-service model that needs little new marketing spend. Revenue fell 4.6%, which is the weak spot, so the investment case rests on whether new releases or mobile titles can stabilise the top line. At a 7.8x trailing P/E and 9.2x forward, the market is pricing in continued decline, while a 15.1% operating margin and 13.2% ROE show the existing business is still profitable. The question for a deeper look is whether the forward estimates, which imply earnings slightly below trailing, reflect real pressure on the franchise or are simply conservative.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Revenue declining year over year
Revenue fell 4.6% YoY even as earnings rose 83.8%, so the profit gain is not coming from top-line growth. The 5-year revenue CAGR of 6.7% also suggests the recent drop is a departure from trend.
moderate
Heavy insider ownership concentration
Insiders hold 59.3% of shares, leaving a small free float that can make the stock thinly traded and sensitive to any insider sales.
AI research notes
AI-assisted·How I use AIWritten Oct 14, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months was KRW 76.1B, and the stock's free cash flow yield stands at 12.3%.
Debt to equity is just 0.01, and the diluted share count did not change in the last fiscal year.
Why it could disappoint
Revenue fell 4.6% year over year, well below the 6.7% average annual growth of the past five years.
Return on invested capital of 8.7% and return on equity of 13.2% are modest for a company with a 15.3% net margin.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 6, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where GRVY's valuation models land
Price
$67.01
Model fair value
$101
Model range
$44.60 to $131
Fair value $101
Price $67.01
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
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Analysts
Wall Street consensus
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Analyst intelligence INVESTOR FEATURE
The full analyst picture: the price-target distribution against the current price, forward consensus estimates, and how ACCE's own models compare.
+Price-target low / average / high vs the current price, with implied upside
+Forward revenue and EPS consensus by fiscal year
+ACCE fair-value models lined up against the Street
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