SKM's stock closed at $21.68 on March 17, 2025, with a regular market percentage change of +1.31%. The volume was 271,941, indicating moderate trading activity.

Fundamental Analysis:

Goldman Sachs Downgrade: Goldman Sachs downgraded SK Telecom from Buy to Neutral, lowering the price target from KRW 69,000 to KRW 57,000. This reflects concerns over industry profitability and the impact of AI initiatives on shareholder returns.
Validea Upgrade: Validea's Growth/Value Investor model upgraded SKM from 50% to 100% based on strong fundamentals and valuation, suggesting potential undervaluation.
Industry Transformation: The telecom industry is shifting towards AI and advanced technologies, offering growth opportunities but also risks like high capital expenditures and competition from tech giants.
Market Conditions: The U.S. market is overvalued, with a yield curve inversion signaling potential recession risk. However, sentiment indicators like the VIX show moderate fear, indicating a stable market environment.

Conclusion:

While Validea's upgrade and industry transformation offer growth potential, the Goldman Sachs downgrade and market overvaluation are significant concerns. It may be prudent to hold or sell SKM stock until there's more clarity on the company's ability to navigate these challenges and until market conditions stabilize.

What is price prediction 2025 for SKM Stock?

The price prediction for SKM stock in 2025 is expected to range between 20.95 and 22.38, with a pivot point at 21.49. This forecast considers the stock's current technical levels and recent analyst actions, including Goldman Sachs' downgrade and Validea's upgrade. The price will likely remain volatile due to industry transformation and AI integration efforts.

What is surpport and resistant level for SKM Stock?

The S1 support level for SKM Stock is $21.16 ,The R1 resistant level for SKM Stock is $21.83.

What is the current price of SKM Stock?

As of the end of day on 2025-03-18, the price of SKM Stock was $21.5.

What is the market cap of SK Telecom Co Ltd?

The market cap of SKM is $4.6B.

Is SK Telecom Co Ltd (SKM) overvalued?

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.

What is SK Telecom Co Ltd (SKM)'s business?

SK Telecom Co Ltd is a Korea-based company primarily engaged in the provision of wireless communication services. The Company operates the business through five segments. The Wireless Communication Business segment provides mobile phones, wireless data, information communication business. The Wireline Communication Business segment offers telephones, high speed Internet, data and network rental services. The Security segment provides services such as personnel and machine security, and information protection. The Commerce segment is engaged in e-commerce business. The Other segment is involved in the businesses such as information communication, electronic banking, advertising, Internet portal services.

What is price prediction 2030 for SKM Stock?

SKM stock is expected to trade sideways around its current price of $21.68 in 2030, as it shows a neutral RSI of 53.78 and is currently consolidating near its Fibonacci pivot level of 21.49.

The stock may rise to $22.38 if it breaks above the Fibonacci resistance level of 22.04, driven by bullish momentum.

It could also drop to $20.95 if it breaks below the Fibonacci support level of 21.16, indicating bearish sentiment.