MUSINSA Needs 'Platform Earnings' to Command an 8 Trillion Won IPO Valuation [fn Market Watch]

[Financial News]  The market's calculations surrounding MUSINSA's valuation of around 8 trillion won as it pursues an initial public offering (IPO) are becoming increasingly complex. Rather than its 5 trillion won gross merchandise value (GMV), the key factor determining its valuation is emerging as how much the platform actually earns.
According to IBK Securities on the 2nd, assuming a valuation of 8 trillion won, MUSINSA's 2025 performance-based EV/GMV, or enterprise value to GMV, would be 1.6x. EV/Sales, or enterprise value to sales, would be 5.5x, while EV/EBITDA, or enterprise value to EBITDA, would be 34.5x. At a 10 trillion won valuation, the figures would rise to 2x, 6.8x and 43.1x, respectively.
The valuation also varies significantly depending on the methodology used.
Applying earnings-based multiples for global e-commerce and fashion companies produces a valuation of 1.6 trillion to 6.4 trillion won. A sum-of-the-parts (SOTP) valuation that assesses the platform and private-brand (PB) businesses separately results in 4.3 trillion to 5.4 trillion won. By contrast, valuations based on GMV or sales rise to 7.6 trillion to 9 trillion won. This means that a valuation of 8 trillion won or more reflects substantial expectations for future growth beyond current earnings.
MUSINSA filed for a preliminary review of its KOSPI Composite Index listing with the Korea Exchange (KRX) on the 7th of last month. The planned offering consists of 26.6 million shares, equivalent to 11.7% of the shares to be listed. The market views a listing in the first half of next year as the primary scenario.
Its financial performance shows divergent trends in scale and profitability. Consolidated revenue last year rose 18.1% to 1.4679 trillion won, while operating profit increased 36.6% to 140.5 billion won. Revenue in the first half of this year also grew 22.5% to 821.7 billion won, but operating profit fell 11.2% to 52.3 billion won. The operating margin declined from 9.6% last year to 6.4%.
The business structure is another factor affecting its valuation. In the second half of this year, platform commissions accounted for 38.1% of revenue, products, including PB products, for 32.4%, and merchandise for 23.8%. PB products can increase revenue, but they also bring inventory, rent and logistics costs. Analysts therefore say the platform and Musinsa Standard should be assessed separately in terms of profitability and valuation.
Overseas operations will also determine the extent of any additional premium. MUSINSA is targeting 3 trillion won in global GMV by 2030. GMV at its global store increased by more than 143% year on year in the second quarter of this year, but the company continues to invest in acquiring overseas customers and expanding logistics.
Jo Kyung-jin, a researcher at IBK Securities, wrote, "Additional confirmation of earnings or the business structure is needed to justify a valuation of more than 8 trillion won." Jo identified platform profitability and whether operating profit and EBITDA rebound in 2027 as key points to watch.
Jo added, "Ultimately, MUSINSA's IPO valuation is likely to be determined by the platform's ability to generate earnings rather than its scale, represented by 5 trillion won in GMV. As platform profitability becomes clearer, the basis for supporting a growth premium that justifies a valuation of more than 8 trillion won is also expected to strengthen." 
[email protected] Kim Kyung-ah Reporter