With net income for fiscal year 2008 projected to be US$4.26 million, the company has a Forward Price-Earnings (F P/E) ratio of 32.4. A seemingly expensive valuation when comparing it to other Asian video game developers such as Shanda Interactive Entertainment (P/E ratio of 12.39), Giant Interactive Group (P/E ratio of 14.12). What exactly has Webzen going for it?
Webzen hasn’t lived up to its hype. From its high of $12.68 in 2004, Webzen has dropped to its current price of $3.39. Its only real success to date has been MU, a MMOG released in 2003. The company’s newest MMOG, Soul Ultimate Nation, has been underwhelming with game revenues already decreasing… Company revenues have actually decreased both domestically and overseas and net income was negative in both 2006 and 2007.