SK Telecom Valuation

Is SKM N 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 SKM N when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SKM N (MX$543.55) is trading below our estimate of fair value (MX$1263.36)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SKM N. This is calculated by dividing SKM N's market cap by their current earnings.
What is SKM N's PE Ratio?
PE Ratio10.9x
Earnings₩976.89b
Market Cap₩10.73t

Price to Earnings Ratio vs Peers

How does SKM N's PE Ratio compare to its peers?

The above table shows the PE ratio for SKM N vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average41x
AMX B América Móvil. de
25.5x22.6%Mex$942.4b
BHARTIHEXA Bharti Hexacom
55.4x32.3%₹664.6b
SITES1 A-1 Operadora de Sites Mexicanos. de
73.3x55.8%Mex$45.3b
MTSS Mobile TeleSystems
9.7x16.9%₽463.3b
SKM N SK Telecom
10.9x6.6%Mex$10.7t

Price-To-Earnings vs Peers: SKM N is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (17.2x).


Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SKM N 10.9xIndustry Avg. 16.9xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SKM N is good value based on its Price-To-Earnings Ratio (10.9x) compared to the Global Wireless Telecom industry average (17.5x).


Price to Earnings Ratio vs Fair Ratio

What is SKM N'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.

SKM N PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.9x
Fair PE Ratio15.7x

Price-To-Earnings vs Fair Ratio: SKM N is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (15.7x).


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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