SK Telecom Valuation

Q: What is the Fair Price of S1KM34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

S1KM34 (R$31.92) is trading below our estimate of [[fair value]] (R$119.86)

Is S1KM34 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of S1KM34 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: S1KM34 (R$31.92) is trading below our estimate of fair value (R$119.86)

Significantly Below Fair Value: S1KM34 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for S1KM34?

Key metric: As S1KM34 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for S1KM34. This is calculated by dividing S1KM34's market cap by their current earnings.
What is S1KM34's PE Ratio?
PE Ratio	10.7x
Earnings	₩1.12t
Market Cap	₩11.99t

S1KM34 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	0.9x
Enterprise Value/EBITDA	3.2x
PEG Ratio	1.3x

Price to Earnings Ratio vs Peers

How does S1KM34's PE Ratio compare to its peers?

The above table shows the PE ratio for S1KM34 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.5x
TIMS3 TIM	12x	12.2%	R$39.6b
VIVT3 Telefônica Brasil	15.3x	14.4%	R$85.1b
BHARTIHEXA Bharti Hexacom	57x	32.3%	₹683.2b
MTSS Mobile TeleSystems	9.7x	16.9%	₽463.3b
S1KM34 SK Telecom	10.7x	8.4%	R$12.0t

Price-To-Earnings vs Peers: S1KM34 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the peer average (28.1x).

Price to Earnings Ratio vs Industry

How does S1KM34's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: S1KM34 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the Global Wireless Telecom industry average (16.9x).

Price to Earnings Ratio vs Fair Ratio

What is S1KM34's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

S1KM34 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.7x
Fair PE Ratio	12x

Price-To-Earnings vs Fair Ratio: S1KM34 is good value based on its Price-To-Earnings Ratio (10.7x) compared to the estimated Fair Price-To-Earnings Ratio (12x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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