Analysis and Insights
Valuation Metrics:
SKM's current price of $21.68 reflects a P/E ratio of 9.72, which is lower than its peers, suggesting it may be undervalued. However, the EV/EBITDA of 6.21 indicates a premium compared to industry averages, signaling potential overvaluation.
Financial Performance:
Revenue has been inconsistent, with Q3 showing a slight increase to $3.34 billion. Net income dropped to $195 million in Q3, raising concerns about profitability trends.
Market Comparison:
SKM's ROE of 10.2% is competitive, and its dividend yield of 6.87% is attractive. The stock trades at a slight premium on a P/B basis, but overall, its valuation aligns with industry peers like KT Corp and Telkom Indonesia.
Conclusion:
SKM does not appear overvalued based on its lower P/E and decent dividend yield. However, inconsistent earnings warrant caution.