SKM Valuation

SK Telecom Co Ltd

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22.660

+0.26(1.161%)1D

Overview
Forecast
Valuation
Earnings

SKM Relative Valuation

SKM's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, SKM is overvalued; if below, it's undervalued.

Historical Valuation

SK Telecom Co Ltd (SKM) is now in the Fair zone, suggesting that its current forward PE ratio of 12.56 is considered Fairly compared with the five-year average of 9.93. The fair price of SK Telecom Co Ltd (SKM) is between 16.20 to 22.83 according to relative valuation methord.

Relative Value

Fair Zone

16.20-22.83

Current Price：22.66

Fair

12.56

Trailing

Forward

4.06

EV/EBITDA

SK Telecom Co Ltd. (SKM) has a current EV/EBITDA of 4.06. The 5-year average EV/EBITDA is 4.21. The thresholds are as follows: Strongly Undervalued below 2.90, Undervalued between 2.90 and 3.56, Fairly Valued between 4.87 and 3.56, Overvalued between 4.87 and 5.53, and Strongly Overvalued above 5.53. The current Forward EV/EBITDA of 4.06 falls within the Historic Trend Line -Fairly Valued range.

12.73

EV/EBIT

SK Telecom Co Ltd. (SKM) has a current EV/EBIT of 12.73. The 5-year average EV/EBIT is 14.51. The thresholds are as follows: Strongly Undervalued below 7.09, Undervalued between 7.09 and 10.80, Fairly Valued between 18.22 and 10.80, Overvalued between 18.22 and 21.93, and Strongly Overvalued above 21.93. The current Forward EV/EBIT of 12.73 falls within the Historic Trend Line -Fairly Valued range.

0.96

SK Telecom Co Ltd. (SKM) has a current PS of 0.96. The 5-year average PS is 0.87. The thresholds are as follows: Strongly Undervalued below 0.28, Undervalued between 0.28 and 0.58, Fairly Valued between 1.17 and 0.58, Overvalued between 1.17 and 1.46, and Strongly Overvalued above 1.46. The current Forward PS of 0.96 falls within the Historic Trend Line -Fairly Valued range.

2.71

P/OCF

SK Telecom Co Ltd. (SKM) has a current P/OCF of 2.71. The 5-year average P/OCF is 2.66. The thresholds are as follows: Strongly Undervalued below 1.35, Undervalued between 1.35 and 2.00, Fairly Valued between 3.31 and 2.00, Overvalued between 3.31 and 3.97, and Strongly Overvalued above 3.97. The current Forward P/OCF of 2.71 falls within the Historic Trend Line -Fairly Valued range.

5.41

P/FCF

SK Telecom Co Ltd. (SKM) has a current P/FCF of 5.41. The 5-year average P/FCF is 8.07. The thresholds are as follows: Strongly Undervalued below 0.18, Undervalued between 0.18 and 4.13, Fairly Valued between 12.02 and 4.13, Overvalued between 12.02 and 15.96, and Strongly Overvalued above 15.96. The current Forward P/FCF of 5.41 falls within the Historic Trend Line -Fairly Valued range.

SK Telecom Co Ltd (SKM) has a current Price-to-Book (P/B) ratio of 0.57. Compared to its 3-year average P/B ratio of 0.87 , the current P/B ratio is approximately -33.92% higher. Relative to its 5-year average P/B ratio of 0.87, the current P/B ratio is about -34.39% higher. SK Telecom Co Ltd (SKM) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 19.26%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 17.14% , the current FCF yield is about -100.00% lower.

0.57

P/B

Median3y

0.87

Median5y

0.87

0.00

FCF Yield

Median3y

19.26

Median5y

17.14

Competitors Valuation Multiple

The average P/S ratio for SKM's competitors is 1.48, providing a benchmark for relative valuation. SK Telecom Co Ltd Corp (SKM) exhibits a P/S ratio of 0.96, which is -35.36% above the industry average. Given its robust revenue growth of -8.95%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

America Movil SAB de CV

Turkcell Iletisim Hizmetleri AS

Verizon Communications Inc

1.30

5.21%

181.93B

Performance Decomposition

Market capitalization of SKM decreased by 1.61% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 6.28 to 6.71.

The secondary factor is the Margin Expansion, contributed 0.37%to the performance.

Overall, the performance of SKM in the past 1 year is driven by P/E Change. Which is more unsustainable.

-8.95%

3.37B → 3.07B

Revenue Growth

0.37%

8.09 → 8.12

Margin Expansion

6.97%

6.28 → 6.71

P/E Change

-1.61%