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Is NEXON (TSE:3659) Still Below Fair Value Following Its Special Dividend?

Simply Wall St · 1d ago

Special Dividend Puts NEXON in Focus

NEXON (TSE:3659) has drawn fresh attention after its Board approved a special dividend of ¥415 per share, funded from retained earnings, with shareholders on September 30, 2026 set as the record holders.

The payout totals a provisional ¥324,001 million, with an effective date of November 25, 2026. This development may prompt investors to reassess how NEXON balances cash returns with future growth spending.

The special dividend comes after a sharp 90-day share price return of 43.04%. However, the year-to-date share price is still down 20.52%, and the 1-year total shareholder return is slightly negative at 3.14%.

Scan how NEXON's special dividend compares with other potential opportunities by reviewing hand-picked companies on the 17 dividend fortresses in a single, focused view.

NEXON appears to be a solid gaming business that has just committed a substantial cash return. The central question now is whether that quality and this special dividend are already fully reflected in the share price.

Most Popular Narrative: 12% Undervalued

NEXON last closed at ¥3,177, while the most followed narrative assigns a fair value of ¥3,600. This frames the special dividend against a view that the shares trade below that central estimate even after a strong 90 day run.

The explosive regional adoption of user-generated content platforms, as seen with MapleStory World's sevenfold year-over-year revenue growth in Asia, highlights Nexon's ability to unlock a long-term network effect, which is expected to support sustained increases in both revenue and average revenue per user as digital entertainment becomes a central part of social and cultural life.

See why 1 investors see NEXON as 12% undervalued.

Result: Fair Value of ¥3,600 (UNDERVALUED)

Still, the bullish NEXON story weakens quickly if aging franchises lose traction, or if overseas expansion outside South Korea, China and Japan continues to disappoint.

Find out about the key risks to this NEXON narrative.

Another View On NEXON's Valuation

The earlier narrative leans on a fair value of ¥3,600, yet the current P/E of 18.3x tells a different story. NEXON trades richer than the JP Entertainment average at 16.8x, but below a fair ratio of 22.4x that the market could move toward over time. That mix suggests some valuation cushion, but also a risk that sentiment swings harder than earnings. Which side of that trade are you really betting on?

See what the numbers say about this price — find out in our valuation breakdown.

TSE:3659 P/E Ratio as at Sep 2026
TSE:3659 P/E Ratio as at Sep 2026

Next Steps

If this mix of optimism and caution around NEXON feels familiar, that is the point. The real edge is in reviewing both sides of the story yourself and weighing the 1 key reward and 3 important warning signs.

Looking for more ideas beyond NEXON?

NEXON may be on your radar, but your next strong opportunity could sit elsewhere. You do not want to spot it after everyone else.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.