Intrinsic value of SK Telecom ADR - SKM

Previous Close

$28.41

  Intrinsic Value

$15.54

stock screener

  Rating & Target

sell

-45%

Previous close

$28.41

 
Intrinsic value

$15.54

 
Up/down potential

-45%

 
Rating

sell

We calculate the intrinsic value of SKM stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -0.26
  4.70
  4.73
  4.76
  4.78
  4.80
  4.82
  4.84
  4.86
  4.87
  4.88
  4.90
  4.91
  4.92
  4.92
  4.93
  4.94
  4.94
  4.95
  4.95
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
  4.98
  4.98
  4.99
Revenue, $m
  14,749
  15,442
  16,173
  16,942
  17,752
  18,605
  19,502
  20,446
  21,439
  22,483
  23,581
  24,736
  25,949
  27,225
  28,565
  29,974
  31,454
  33,009
  34,643
  36,359
  38,163
  40,057
  42,047
  44,137
  46,332
  48,637
  51,059
  53,602
  56,272
  59,077
  62,023
Variable operating expenses, $m
 
  13,921
  14,572
  15,257
  15,978
  16,738
  17,537
  18,378
  19,262
  20,192
  21,170
  22,032
  23,113
  24,249
  25,443
  26,697
  28,016
  29,401
  30,856
  32,385
  33,991
  35,678
  37,451
  39,312
  41,267
  43,321
  45,477
  47,742
  50,121
  52,619
  55,243
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  13,445
  13,921
  14,572
  15,257
  15,978
  16,738
  17,537
  18,378
  19,262
  20,192
  21,170
  22,032
  23,113
  24,249
  25,443
  26,697
  28,016
  29,401
  30,856
  32,385
  33,991
  35,678
  37,451
  39,312
  41,267
  43,321
  45,477
  47,742
  50,121
  52,619
  55,243
Operating income, $m
  1,304
  1,521
  1,601
  1,685
  1,774
  1,867
  1,965
  2,068
  2,177
  2,291
  2,411
  2,704
  2,836
  2,976
  3,122
  3,276
  3,438
  3,608
  3,787
  3,974
  4,172
  4,379
  4,596
  4,825
  5,064
  5,316
  5,581
  5,859
  6,151
  6,458
  6,780
EBITDA, $m
  3,952
  4,112
  4,307
  4,512
  4,728
  4,955
  5,194
  5,445
  5,709
  5,987
  6,280
  6,587
  6,910
  7,250
  7,607
  7,982
  8,376
  8,791
  9,226
  9,683
  10,163
  10,668
  11,197
  11,754
  12,339
  12,953
  13,597
  14,275
  14,986
  15,733
  16,517
Interest expense (income), $m
  226
  196
  217
  238
  261
  285
  310
  337
  365
  394
  425
  458
  492
  528
  565
  605
  647
  691
  737
  785
  836
  889
  945
  1,004
  1,066
  1,131
  1,199
  1,271
  1,346
  1,425
  1,508
Earnings before tax, $m
  1,809
  1,326
  1,384
  1,447
  1,513
  1,582
  1,655
  1,731
  1,812
  1,897
  1,986
  2,246
  2,345
  2,448
  2,557
  2,671
  2,791
  2,918
  3,050
  3,189
  3,336
  3,489
  3,651
  3,820
  3,998
  4,186
  4,382
  4,588
  4,805
  5,032
  5,271
Tax expense, $m
  376
  358
  374
  391
  408
  427
  447
  467
  489
  512
  536
  606
  633
  661
  690
  721
  754
  788
  824
  861
  901
  942
  986
  1,032
  1,080
  1,130
  1,183
  1,239
  1,297
  1,359
  1,423
Net income, $m
  1,446
  968
  1,011
  1,056
  1,104
  1,155
  1,208
  1,264
  1,323
  1,385
  1,450
  1,640
  1,712
  1,787
  1,867
  1,950
  2,038
  2,130
  2,227
  2,328
  2,435
  2,547
  2,665
  2,789
  2,919
  3,055
  3,199
  3,349
  3,508
  3,674
  3,848

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  1,718
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  27,007
  26,487
  27,740
  29,060
  30,449
  31,912
  33,451
  35,070
  36,773
  38,565
  40,448
  42,428
  44,510
  46,697
  48,997
  51,413
  53,952
  56,619
  59,422
  62,366
  65,459
  68,708
  72,121
  75,706
  79,471
  83,426
  87,579
  91,941
  96,522
  101,333
  106,385
Adjusted assets (=assets-cash), $m
  25,289
  26,487
  27,740
  29,060
  30,449
  31,912
  33,451
  35,070
  36,773
  38,565
  40,448
  42,428
  44,510
  46,697
  48,997
  51,413
  53,952
  56,619
  59,422
  62,366
  65,459
  68,708
  72,121
  75,706
  79,471
  83,426
  87,579
  91,941
  96,522
  101,333
  106,385
Revenue / Adjusted assets
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
  0.583
Average production assets, $m
  11,581
  12,122
  12,696
  13,299
  13,935
  14,605
  15,309
  16,050
  16,830
  17,649
  18,511
  19,417
  20,370
  21,371
  22,424
  23,529
  24,691
  25,912
  27,195
  28,542
  29,958
  31,445
  33,007
  34,647
  36,370
  38,180
  40,081
  42,077
  44,174
  46,376
  48,688
Working capital, $m
  -386
  -1,405
  -1,472
  -1,542
  -1,615
  -1,693
  -1,775
  -1,861
  -1,951
  -2,046
  -2,146
  -2,251
  -2,361
  -2,477
  -2,599
  -2,728
  -2,862
  -3,004
  -3,153
  -3,309
  -3,473
  -3,645
  -3,826
  -4,016
  -4,216
  -4,426
  -4,646
  -4,878
  -5,121
  -5,376
  -5,644
Total debt, $m
  6,359
  6,192
  6,810
  7,461
  8,146
  8,867
  9,625
  10,424
  11,263
  12,146
  13,075
  14,051
  15,077
  16,156
  17,289
  18,480
  19,732
  21,047
  22,429
  23,881
  25,405
  27,007
  28,690
  30,457
  32,313
  34,263
  36,310
  38,461
  40,719
  43,091
  45,582
Total liabilities, $m
  13,225
  13,058
  13,676
  14,327
  15,012
  15,733
  16,491
  17,290
  18,129
  19,012
  19,941
  20,917
  21,943
  23,022
  24,155
  25,346
  26,598
  27,913
  29,295
  30,747
  32,271
  33,873
  35,556
  37,323
  39,179
  41,129
  43,176
  45,327
  47,585
  49,957
  52,448
Total equity, $m
  13,782
  13,429
  14,064
  14,733
  15,438
  16,179
  16,960
  17,781
  18,644
  19,552
  20,507
  21,511
  22,566
  23,676
  24,841
  26,066
  27,353
  28,706
  30,127
  31,620
  33,188
  34,835
  36,565
  38,383
  40,292
  42,297
  44,403
  46,614
  48,937
  51,376
  53,937
Total liabilities and equity, $m
  27,007
  26,487
  27,740
  29,060
  30,450
  31,912
  33,451
  35,071
  36,773
  38,564
  40,448
  42,428
  44,509
  46,698
  48,996
  51,412
  53,951
  56,619
  59,422
  62,367
  65,459
  68,708
  72,121
  75,706
  79,471
  83,426
  87,579
  91,941
  96,522
  101,333
  106,385
Debt-to-equity ratio
  0.461
  0.460
  0.480
  0.510
  0.530
  0.550
  0.570
  0.590
  0.600
  0.620
  0.640
  0.650
  0.670
  0.680
  0.700
  0.710
  0.720
  0.730
  0.740
  0.760
  0.770
  0.780
  0.780
  0.790
  0.800
  0.810
  0.820
  0.830
  0.830
  0.840
  0.850
Adjusted equity ratio
  0.477
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507
  0.507

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,446
  968
  1,011
  1,056
  1,104
  1,155
  1,208
  1,264
  1,323
  1,385
  1,450
  1,640
  1,712
  1,787
  1,867
  1,950
  2,038
  2,130
  2,227
  2,328
  2,435
  2,547
  2,665
  2,789
  2,919
  3,055
  3,199
  3,349
  3,508
  3,674
  3,848
Depreciation, amort., depletion, $m
  2,648
  2,591
  2,706
  2,827
  2,954
  3,088
  3,229
  3,377
  3,533
  3,697
  3,869
  3,883
  4,074
  4,274
  4,485
  4,706
  4,938
  5,182
  5,439
  5,708
  5,992
  6,289
  6,601
  6,929
  7,274
  7,636
  8,016
  8,415
  8,835
  9,275
  9,738
Funds from operations, $m
  3,268
  3,559
  3,716
  3,883
  4,058
  4,242
  4,436
  4,641
  4,855
  5,081
  5,319
  5,523
  5,786
  6,061
  6,351
  6,656
  6,976
  7,312
  7,666
  8,037
  8,427
  8,836
  9,266
  9,718
  10,193
  10,691
  11,215
  11,765
  12,342
  12,949
  13,586
Change in working capital, $m
  -394
  -63
  -66
  -70
  -74
  -78
  -82
  -86
  -90
  -95
  -100
  -105
  -110
  -116
  -122
  -128
  -135
  -142
  -149
  -156
  -164
  -172
  -181
  -190
  -200
  -210
  -220
  -231
  -243
  -255
  -268
Cash from operations, $m
  3,662
  3,622
  3,783
  3,953
  4,132
  4,320
  4,518
  4,727
  4,946
  5,176
  5,419
  5,628
  5,896
  6,177
  6,473
  6,784
  7,111
  7,454
  7,814
  8,193
  8,591
  9,009
  9,447
  9,909
  10,393
  10,901
  11,435
  11,996
  12,585
  13,204
  13,854
Maintenance CAPEX, $m
  0
  -2,316
  -2,424
  -2,539
  -2,660
  -2,787
  -2,921
  -3,062
  -3,210
  -3,366
  -3,530
  -3,702
  -3,883
  -4,074
  -4,274
  -4,485
  -4,706
  -4,938
  -5,182
  -5,439
  -5,708
  -5,992
  -6,289
  -6,601
  -6,929
  -7,274
  -7,636
  -8,016
  -8,415
  -8,835
  -9,275
New CAPEX, $m
  -2,697
  -541
  -573
  -604
  -636
  -669
  -704
  -741
  -779
  -820
  -862
  -906
  -953
  -1,001
  -1,052
  -1,106
  -1,162
  -1,221
  -1,283
  -1,347
  -1,416
  -1,487
  -1,562
  -1,641
  -1,723
  -1,810
  -1,901
  -1,996
  -2,097
  -2,202
  -2,312
Cash from investing activities, $m
  -2,125
  -2,857
  -2,997
  -3,143
  -3,296
  -3,456
  -3,625
  -3,803
  -3,989
  -4,186
  -4,392
  -4,608
  -4,836
  -5,075
  -5,326
  -5,591
  -5,868
  -6,159
  -6,465
  -6,786
  -7,124
  -7,479
  -7,851
  -8,242
  -8,652
  -9,084
  -9,537
  -10,012
  -10,512
  -11,037
  -11,587
Free cash flow, $m
  1,537
  765
  785
  810
  836
  864
  893
  924
  956
  991
  1,027
  1,020
  1,060
  1,102
  1,147
  1,194
  1,243
  1,295
  1,349
  1,406
  1,467
  1,530
  1,597
  1,667
  1,740
  1,817
  1,899
  1,984
  2,073
  2,168
  2,266
Issuance/(repayment) of debt, $m
  -203
  602
  618
  651
  685
  721
  759
  798
  840
  883
  929
  976
  1,026
  1,079
  1,134
  1,191
  1,252
  1,315
  1,382
  1,452
  1,525
  1,602
  1,683
  1,767
  1,856
  1,950
  2,048
  2,150
  2,258
  2,372
  2,491
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -293
  602
  618
  651
  685
  721
  759
  798
  840
  883
  929
  976
  1,026
  1,079
  1,134
  1,191
  1,252
  1,315
  1,382
  1,452
  1,525
  1,602
  1,683
  1,767
  1,856
  1,950
  2,048
  2,150
  2,258
  2,372
  2,491
Total cash flow (excl. dividends), $m
  1,244
  1,367
  1,403
  1,460
  1,521
  1,585
  1,652
  1,722
  1,796
  1,874
  1,955
  1,996
  2,086
  2,181
  2,280
  2,385
  2,495
  2,610
  2,731
  2,858
  2,992
  3,132
  3,279
  3,434
  3,596
  3,767
  3,946
  4,134
  4,332
  4,539
  4,757
Retained Cash Flow (-), $m
  -622
  -596
  -635
  -669
  -704
  -742
  -780
  -821
  -864
  -908
  -955
  -1,004
  -1,055
  -1,109
  -1,166
  -1,225
  -1,287
  -1,352
  -1,421
  -1,493
  -1,568
  -1,647
  -1,730
  -1,817
  -1,909
  -2,005
  -2,106
  -2,212
  -2,323
  -2,439
  -2,562
Prev. year cash balance distribution, $m
 
  949
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,720
  768
  791
  817
  843
  871
  901
  932
  965
  1,000
  992
  1,031
  1,072
  1,115
  1,160
  1,207
  1,257
  1,310
  1,365
  1,423
  1,485
  1,549
  1,616
  1,687
  1,762
  1,840
  1,923
  2,009
  2,100
  2,196
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,649
  703
  689
  672
  654
  632
  609
  583
  555
  524
  471
  440
  407
  374
  340
  307
  274
  241
  210
  181
  154
  129
  106
  86
  69
  54
  41
  31
  23
  17
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

SK Telecom Co., Ltd. provides wireless telecommunications in Korea. The Company is engaged in the commercial development and implementation of wireless and fixed-line technologies and services, as well as develop its platforms, including Internet of things (IoT) solutions, lifestyle enhancement and advanced media. It operates through three segments: cellular services, which include wireless voice and data transmission services, sales of wireless devices, IoT solutions platform services and lifestyle enhancement platform services; fixed-line telecommunication services, which include fixed-line telephone services, broadband Internet services, advanced media platform services (including Internet Protocol television (IPTV)) and business communications services, and other businesses, which include its commerce business, its hardware business and other operations. Its brands include SK Telecom, T-Roaming, 7Mobile, B phone, 00700, B tv, Syrup, UO Smart Beam Laser, Astell&Kern and Nate.

FINANCIAL RATIOS  of  SK Telecom ADR (SKM)

Valuation Ratios
P/E Ratio 1.4
Price to Sales 0.1
Price to Book 0.1
Price to Tangible Book
Price to Cash Flow 0.5
Price to Free Cash Flow 2.1
Growth Rates
Sales Growth Rate -0.3%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 19.9%
Cap. Spend. - 3 Yr. Gr. Rate 0%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 40.6%
Total Debt to Equity 46.1%
Interest Coverage 9
Management Effectiveness
Return On Assets 6.3%
Ret/ On Assets - 3 Yr. Avg. 6.6%
Return On Total Capital 7.3%
Ret/ On T. Cap. - 3 Yr. Avg. 7.6%
Return On Equity 10.7%
Return On Equity - 3 Yr. Avg. 11.3%
Asset Turnover 0.6
Profitability Ratios
Gross Margin 94.4%
Gross Margin - 3 Yr. Avg. 94.3%
EBITDA Margin 31.8%
EBITDA Margin - 3 Yr. Avg. 31.5%
Operating Margin 8.8%
Oper. Margin - 3 Yr. Avg. 9.3%
Pre-Tax Margin 12.3%
Pre-Tax Margin - 3 Yr. Avg. 12.4%
Net Profit Margin 9.8%
Net Profit Margin - 3 Yr. Avg. 9.7%
Effective Tax Rate 20.8%
Eff/ Tax Rate - 3 Yr. Avg. 22.2%
Payout Ratio 42.1%

SKM stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the SKM stock intrinsic value calculation we used $14749 million for the last fiscal year's total revenue generated by SK Telecom ADR. The default revenue input number comes from 2016 income statement of SK Telecom ADR. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our SKM stock valuation model: a) initial revenue growth rate of 4.7% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for SKM is calculated based on our internal credit rating of SK Telecom ADR, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of SK Telecom ADR.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of SKM stock the variable cost ratio is equal to 90.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for SKM stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for SK Telecom ADR.

Corporate tax rate of 27% is the nominal tax rate for SK Telecom ADR. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the SKM stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for SKM are equal to 78.5%.

Life of production assets of 5 years is the average useful life of capital assets used in SK Telecom ADR operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for SKM is equal to -9.1%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $13782 million for SK Telecom ADR - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 724.472 million for SK Telecom ADR is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of SK Telecom ADR at the current share price and the inputted number of shares is $20.6 billion.

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COMPANY NEWS

▶ SK Telecom Earns RS Rating Upgrade   [Jan-08-18 03:00AM  Investor's Business Daily]
▶ 5 Undervalued Stocks With Growing Book Value   [Dec-19-17 11:00AM  GuruFocus.com]
▶ Stocks With Rising Relative Price Strength: SK Telecom   [03:00AM  Investor's Business Daily]
▶ Top Ranked Value Stocks to Buy for December 13th   [Dec-13-17 03:50PM  InvestorPlace]
▶ Stocks With Rising Relative Price Strength: SK Telecom   [Dec-06-17 03:00AM  Investor's Business Daily]
▶ 7 Low Price-to-Sales Stocks Worth Buying   [Aug-25-17 09:15AM  Zacks]
▶ SK Telecom Co. Ltd. Files its Annual Report on Form 20-F   [Apr-27-17 07:07AM  PR Newswire]
▶ If You're Retired, Consider Buying These 3 Stocks   [Apr-18-17 01:48PM  Motley Fool]
▶ SK Telecom opens Seoul campus for startups   [Apr-17-17 09:15PM  ZDNet]
▶ Buy These 4 Stocks with Increasing Cash Flows   [Mar-14-17 10:31AM  Zacks]
▶ SK Telecom to Participate in Mobile World Congress 2017   [Feb-22-17 09:18PM  PR Newswire]
▶ SK Telecom to Unveil '360 VR Live' at MWC 2017   [Feb-19-17 11:00PM  PR Newswire]
Financial statements of SKM
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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