WEBTOON Entertainment Inc.

WBTNdata completeness 88%4 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

WEBTOON Entertainment Inc. earns about -21% on invested capital, below its ~9% cost of capital, but has diluted owners by 22% over 4 years — no moat visible in the numbers. The estimate methods put fair value between $4.94 and $4.97 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025
Revenue$1.08B1$1.28B2$1.35B2$1.38B2
Net income−$129.9M3−$116.5M4−$143.9M4−$345.9M4
Operating cash flow−$140.6M5$14.8M6$17.9M6$11.2M6
Capital expenditure$2.7M7$10.2M8$2.4M8$7.62M8
Free cash flow (derived)−$143.3M5$4.61M6$15.5M6$3.6M6
Total debt$8.63M9$09
Cash & equivalents$279.7M10$231.7M11$572.4M12$581.8M12
Diluted shares106.5M109.5M119.2M130.2M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$89.91
your share of equity
Profit it earned you last year
−$26.57
Free cash flow it threw off
$0.28
Debt you’d be carrying

10 shares is a claim on $89.91 of net worth that earned you −$26.57 and generated $0.28 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-21% avg · 4y
FY22 -8%FY23 -10%FY24 -13%FY25 -52%

It earned about -21% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+22% shares · 4y

Share count is up 22% over 4 years — owners have been diluted. Worth asking what they got for it. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $4.94 and $4.97 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$4.94
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$4.61M
DCF · Growth Exit 5Y
$4.97
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$4.61M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $4.97
The three cases
Bear0.0%$4.97
Base0.0%$4.97
Bull5.0%$5.1

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2022-12-31 · accession 0001997859-25-000017 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2023-12-31 · accession 0001997859-26-000028 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2022-12-31 · accession 0001997859-25-000017 (NetIncomeLoss)
  4. 10-K · period ending 2023-12-31 · accession 0001997859-26-000028 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001997859-25-000017 (NetCashProvidedByUsedInOperatingActivities)
  6. 10-K · period ending 2023-12-31 · accession 0001997859-26-000028 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0001997859-25-000017 (PaymentsToAcquirePropertyPlantAndEquipment)
  8. 10-K · period ending 2023-12-31 · accession 0001997859-26-000028 (PaymentsToAcquirePropertyPlantAndEquipment)
  9. 10-K · period ending 2023-12-31 · accession 0001997859-25-000017 (LongTermDebtNoncurrent)
  10. 10-K · period ending 2022-12-31 · accession 0001997859-26-000028 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  11. 10-K · period ending 2023-12-31 · accession 0001997859-25-000017 (CashAndCashEquivalentsAtCarryingValue)
  12. 10-K · period ending 2024-12-31 · accession 0001997859-26-000028 (CashAndCashEquivalentsAtCarryingValue)