It seems to be a glum last quarter for SM Entertainment as reports say that their stocks have been declining just after the departure of Girls’ Generation member Jessica and the current attempt to leave of EXO’s Luhan surfaced.
Aside from their stocks dropping to 3,100 KRW immediately following the news but the agency has also now dropped in ranking to YG Entertainment in relation to market capitalization (market value or stock price multiplied by total shares offered).
SME has been on the top in the kpop industry, but following their latest scandal, the stock price hit a 52-week low and the market capitalization has dropped to 644.2 billion KRW (~ $600 million USD), putting YG Entertainment in first place with a market capitalization of 743.3 billion KRW (~ $700 million USD). To put things in perspective, SM's market cap was around 1.4 trillion KRW (around $1.3 billion) back in October of 2012.
On the day that news about Luhan filing a lawsuit against SME, the agency dropped a total of 5,450 KRW (around 15%) and is now trading at 31,200 KRW (around $29) a share, whereas YG is trading at 49,350 KRW (around $46) a share. Currently on the KOSDAQ market capitalization list, YG ranks at 25 while SM falls to 32.
SM Entertainment has debuted H.O.T, Shinhwa, BoA, TVXQ, Girls’ Generation, Super Junior, SHINee, f(x), EXO, Red Velvet and many more.
