Additional performance confirmation required to justify corporate value of 8 trillion won ahead of Musinsa IPO

(Seoul = Yonhap News) Reporter Hwang Cheol-hwan = A corporate value of more than 8 trillion won is being discussed ahead of the IPO of K-fashion brand Musinsa, but it has been diagnosed that additional performance must be confirmed to justify it.

In a report published on the 2nd, researcher Kyeong-jin Cho of IBK Investment & Securities pointed out that the corporate value of 8 to 10 trillion won mentioned in the market largely reflects future growth potential and platform value rather than the current profit level.

He calculated, “Assuming a corporate value of 8 trillion won, based on 2025 performance, this is equivalent to 1.6 times EV/GMV (corporate value compared to product transaction value), 5.5 times EV/Sales (corporate value compared to sales), and approximately 34.5 times EV/EBITDA (corporate value compared to operating profit before amortization).”

In addition, he pointed out that when calculating the valuation of similar companies in reverse, the difference in corporate value estimates can increase depending on the indicator applied.

If the EV/EBITDA of similar companies in the global e-commerce and clothing industry is applied, Musinsa's fair corporate value is calculated to be around KRW 1.6 trillion to KRW 6.4 trillion, but if multiples based on transaction amount and sales are applied, the valuation expands to KRW 7.6 trillion to KRW 9 trillion.

Therefore, “in order to justify the corporate value of more than 8 trillion won, additional performance or confirmation of business structure is necessary,” researcher Cho said.

Researcher Cho explained, "First, if the sales and profit contributions of private brand (PB) businesses such as Musinsa Standard and platform businesses are confirmed separately, a differentiated multiple can be applied according to the profitability and growth potential of each business."

In particular, he added, “If the high profitability of the platform sector is confirmed, we believe that the basis for applying a higher platform multiple than that of pure retail companies can be strengthened.”

In addition, he said, “It is important to see a meaningful rebound in operating profit and EBITDA in 2027 after a slowdown in profitability due to investment expansion in 2026,” and added, “If overseas GMV (goods transaction value) and sales growth, and expansion of global customers and brands are confirmed, there is room for some recognition of the premium as a global growth platform rather than a domestic fashion commerce company.”

On the 7th of last month, Musinsa requested a preliminary review for KOSPI listing from the Korea Exchange. The market sees listing in the first half of 2027 as the main scenario.

Consolidated sales in 2025 were KRW 1.4679 trillion, an increase of 18.1% compared to the previous year, and operating profit and EBITDA were KRW 140.5 billion and KRW 232.2 billion, respectively, an increase of 36.6% and 29.6%.

However, in the case of consolidated performance in the first half of 2026, sales increased by 22.5% to KRW 821.7 billion compared to the same period last year, but operating profit decreased by 11.2% to KRW 52.3 billion, which is said to be due to increased costs due to overseas business, logistics, and offline expansion.

Researcher Cho assessed, “The external market environment is somewhat conservative.”

In particular, last month, Chinese fast fashion brand Sheein was listed on the Hong Kong stock exchange at a 75% lower level than the corporate value previously evaluated in the private market, and its stock price fell by about 9% on the first day of trading. It was reported that the valuation standard in the IPO market for global fashion commerce companies has become lower than before.

Researcher Cho advised, "Accordingly, during Musinsa's IPO, we believe that we need to check the sustainability of profit growth, the profitability of the platform and PB business, and the possibility of additional growth due to global expansion rather than transaction volume growth or market share."