For this edition of ValueTeddy’s Write-Ups we are looking at a very cheap Korean game company called Gravity. Business Gravity is a Korean developer and publisher of online and mobile games. They were founded in 2000, and listed ADRs on NASDAQ in 2005. Gravity’s main IP is Ragnarok, which began with their first game: Ragnarok Online which launched in 2002. Ragnarok Online is an “online MMORPG”, and Gravity earns revenue from the subscription fee required to play. In some markets, Gravity licence the game, and thereby earning royalties and licence fees instead of subscription revenues. Even though it has close to 20 years behind it, Ragnarok Online contributed about 20% of the revenues in 2020 and about 10% of the 2019 revenues.
Regarding GRVY's capital allocation. Based on their past ROI it would be interesting to see what they could achieve with a higher R&D budget. I belive that would be my preferred capital allocation.
Regarding GRVY's capital allocation. Based on their past ROI it would be interesting to see what they could achieve with a higher R&D budget. I belive that would be my preferred capital allocation.