Intrinsic value of KT ADR - KT

Previous Close

$13.24

  Intrinsic Value

$69.47

stock screener

  Rating & Target

str. buy

+425%

Previous close

$13.24

 
Intrinsic value

$69.47

 
Up/down potential

+425%

 
Rating

str. buy

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of KT 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.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of KT ADR (KT) stock.

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, %
  2.08
  5.40
  5.36
  5.32
  5.29
  5.26
  5.24
  5.21
  5.19
  5.17
  5.15
  5.14
  5.13
  5.11
  5.10
  5.09
  5.08
  5.07
  5.07
  5.06
  5.05
  5.05
  5.04
  5.04
  5.04
  5.03
  5.03
  5.03
  5.02
  5.02
  5.02
Revenue, $m
  19,626
  20,686
  21,795
  22,955
  24,170
  25,441
  26,774
  28,169
  29,632
  31,164
  32,771
  34,455
  36,221
  38,073
  40,015
  42,053
  44,190
  46,432
  48,785
  51,253
  53,844
  56,562
  59,415
  62,409
  65,552
  68,850
  72,312
  75,947
  79,762
  83,766
  87,971
Variable operating expenses, $m
 
  9,494
  10,001
  10,533
  11,089
  11,671
  12,281
  12,920
  13,590
  14,292
  15,027
  15,776
  16,585
  17,433
  18,322
  19,255
  20,234
  21,261
  22,338
  23,468
  24,654
  25,899
  27,205
  28,576
  30,015
  31,525
  33,111
  34,775
  36,522
  38,355
  40,280
Fixed operating expenses, $m
 
  9,906
  10,153
  10,407
  10,667
  10,934
  11,207
  11,487
  11,775
  12,069
  12,371
  12,680
  12,997
  13,322
  13,655
  13,996
  14,346
  14,705
  15,073
  15,449
  15,836
  16,231
  16,637
  17,053
  17,480
  17,917
  18,364
  18,824
  19,294
  19,776
  20,271
Total operating expenses, $m
  18,429
  19,400
  20,154
  20,940
  21,756
  22,605
  23,488
  24,407
  25,365
  26,361
  27,398
  28,456
  29,582
  30,755
  31,977
  33,251
  34,580
  35,966
  37,411
  38,917
  40,490
  42,130
  43,842
  45,629
  47,495
  49,442
  51,475
  53,599
  55,816
  58,131
  60,551
Operating income, $m
  1,197
  1,287
  1,640
  2,015
  2,414
  2,836
  3,285
  3,762
  4,267
  4,804
  5,373
  5,999
  6,639
  7,318
  8,038
  8,801
  9,610
  10,467
  11,374
  12,336
  13,354
  14,432
  15,572
  16,780
  18,057
  19,408
  20,837
  22,348
  23,946
  25,635
  27,419
EBITDA, $m
  4,150
  4,368
  4,885
  5,432
  6,010
  6,621
  7,267
  7,949
  8,671
  9,434
  10,241
  11,094
  11,995
  12,948
  13,956
  15,020
  16,145
  17,333
  18,589
  19,915
  21,317
  22,796
  24,359
  26,009
  27,751
  29,590
  31,531
  33,580
  35,741
  38,022
  40,429
Interest expense (income), $m
  321
  239
  276
  313
  352
  393
  435
  480
  527
  576
  627
  681
  738
  797
  859
  924
  993
  1,064
  1,140
  1,219
  1,302
  1,388
  1,480
  1,575
  1,676
  1,781
  1,892
  2,008
  2,130
  2,258
  2,393
Earnings before tax, $m
  973
  1,047
  1,364
  1,702
  2,062
  2,444
  2,850
  3,282
  3,740
  4,228
  4,746
  5,317
  5,901
  6,521
  7,179
  7,877
  8,617
  9,402
  10,235
  11,117
  12,052
  13,043
  14,093
  15,204
  16,381
  17,627
  18,945
  20,340
  21,816
  23,376
  25,027
Tax expense, $m
  285
  283
  368
  460
  557
  660
  770
  886
  1,010
  1,142
  1,281
  1,436
  1,593
  1,761
  1,938
  2,127
  2,327
  2,539
  2,763
  3,002
  3,254
  3,522
  3,805
  4,105
  4,423
  4,759
  5,115
  5,492
  5,890
  6,312
  6,757
Net income, $m
  614
  765
  996
  1,243
  1,505
  1,784
  2,081
  2,396
  2,731
  3,086
  3,464
  3,882
  4,308
  4,760
  5,241
  5,750
  6,290
  6,864
  7,471
  8,116
  8,798
  9,522
  10,288
  11,099
  11,958
  12,868
  13,830
  14,848
  15,925
  17,065
  18,269

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  3,125
  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
  26,395
  24,538
  25,854
  27,230
  28,671
  30,180
  31,760
  33,415
  35,150
  36,968
  38,874
  40,872
  42,967
  45,164
  47,468
  49,885
  52,420
  55,080
  57,870
  60,799
  63,871
  67,096
  70,480
  74,032
  77,760
  81,673
  85,780
  90,091
  94,616
  99,367
  104,354
Adjusted assets (=assets-cash), $m
  23,270
  24,538
  25,854
  27,230
  28,671
  30,180
  31,760
  33,415
  35,150
  36,968
  38,874
  40,872
  42,967
  45,164
  47,468
  49,885
  52,420
  55,080
  57,870
  60,799
  63,871
  67,096
  70,480
  74,032
  77,760
  81,673
  85,780
  90,091
  94,616
  99,367
  104,354
Revenue / Adjusted assets
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
  0.843
Average production assets, $m
  15,086
  15,907
  16,760
  17,652
  18,586
  19,565
  20,589
  21,662
  22,787
  23,965
  25,201
  26,496
  27,854
  29,278
  30,772
  32,339
  33,982
  35,706
  37,515
  39,414
  41,406
  43,496
  45,690
  47,993
  50,409
  52,946
  55,608
  58,403
  61,337
  64,416
  67,649
Working capital, $m
  153
  -1,469
  -1,547
  -1,630
  -1,716
  -1,806
  -1,901
  -2,000
  -2,104
  -2,213
  -2,327
  -2,446
  -2,572
  -2,703
  -2,841
  -2,986
  -3,137
  -3,297
  -3,464
  -3,639
  -3,823
  -4,016
  -4,218
  -4,431
  -4,654
  -4,888
  -5,134
  -5,392
  -5,663
  -5,947
  -6,246
Total debt, $m
  7,008
  6,264
  7,110
  7,995
  8,921
  9,892
  10,908
  11,972
  13,088
  14,257
  15,482
  16,767
  18,114
  19,526
  21,008
  22,562
  24,192
  25,902
  27,697
  29,580
  31,555
  33,629
  35,805
  38,089
  40,486
  43,002
  45,642
  48,414
  51,324
  54,379
  57,586
Total liabilities, $m
  16,521
  15,778
  16,624
  17,509
  18,435
  19,406
  20,422
  21,486
  22,602
  23,771
  24,996
  26,281
  27,628
  29,040
  30,522
  32,076
  33,706
  35,416
  37,211
  39,094
  41,069
  43,143
  45,319
  47,603
  50,000
  52,516
  55,156
  57,928
  60,838
  63,893
  67,100
Total equity, $m
  9,873
  8,760
  9,230
  9,721
  10,236
  10,774
  11,338
  11,929
  12,549
  13,198
  13,878
  14,591
  15,339
  16,123
  16,946
  17,809
  18,714
  19,663
  20,660
  21,705
  22,802
  23,953
  25,161
  26,429
  27,760
  29,157
  30,623
  32,162
  33,778
  35,474
  37,254
Total liabilities and equity, $m
  26,394
  24,538
  25,854
  27,230
  28,671
  30,180
  31,760
  33,415
  35,151
  36,969
  38,874
  40,872
  42,967
  45,163
  47,468
  49,885
  52,420
  55,079
  57,871
  60,799
  63,871
  67,096
  70,480
  74,032
  77,760
  81,673
  85,779
  90,090
  94,616
  99,367
  104,354
Debt-to-equity ratio
  0.710
  0.720
  0.770
  0.820
  0.870
  0.920
  0.960
  1.000
  1.040
  1.080
  1.120
  1.150
  1.180
  1.210
  1.240
  1.270
  1.290
  1.320
  1.340
  1.360
  1.380
  1.400
  1.420
  1.440
  1.460
  1.470
  1.490
  1.510
  1.520
  1.530
  1.550
Adjusted equity ratio
  0.296
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  614
  765
  996
  1,243
  1,505
  1,784
  2,081
  2,396
  2,731
  3,086
  3,464
  3,882
  4,308
  4,760
  5,241
  5,750
  6,290
  6,864
  7,471
  8,116
  8,798
  9,522
  10,288
  11,099
  11,958
  12,868
  13,830
  14,848
  15,925
  17,065
  18,269
Depreciation, amort., depletion, $m
  2,953
  3,081
  3,245
  3,417
  3,596
  3,784
  3,981
  4,188
  4,404
  4,631
  4,868
  5,095
  5,357
  5,630
  5,918
  6,219
  6,535
  6,867
  7,215
  7,580
  7,963
  8,365
  8,787
  9,229
  9,694
  10,182
  10,694
  11,231
  11,796
  12,388
  13,009
Funds from operations, $m
  3,636
  3,846
  4,241
  4,659
  5,101
  5,568
  6,062
  6,583
  7,134
  7,717
  8,332
  8,977
  9,664
  10,391
  11,158
  11,969
  12,825
  13,730
  14,686
  15,695
  16,761
  17,886
  19,074
  20,328
  21,652
  23,049
  24,524
  26,080
  27,721
  29,453
  31,279
Change in working capital, $m
  -481
  -75
  -79
  -82
  -86
  -90
  -95
  -99
  -104
  -109
  -114
  -120
  -125
  -131
  -138
  -145
  -152
  -159
  -167
  -175
  -184
  -193
  -203
  -213
  -223
  -234
  -246
  -258
  -271
  -284
  -298
Cash from operations, $m
  4,117
  3,921
  4,320
  4,742
  5,188
  5,659
  6,156
  6,682
  7,238
  7,826
  8,447
  9,097
  9,790
  10,522
  11,296
  12,114
  12,977
  13,889
  14,853
  15,870
  16,945
  18,079
  19,277
  20,541
  21,875
  23,284
  24,770
  26,338
  27,992
  29,737
  31,577
Maintenance CAPEX, $m
  0
  -2,901
  -3,059
  -3,223
  -3,395
  -3,574
  -3,762
  -3,959
  -4,166
  -4,382
  -4,609
  -4,846
  -5,095
  -5,357
  -5,630
  -5,918
  -6,219
  -6,535
  -6,867
  -7,215
  -7,580
  -7,963
  -8,365
  -8,787
  -9,229
  -9,694
  -10,182
  -10,694
  -11,231
  -11,796
  -12,388
New CAPEX, $m
  -2,779
  -821
  -853
  -892
  -934
  -978
  -1,024
  -1,073
  -1,125
  -1,179
  -1,235
  -1,295
  -1,358
  -1,424
  -1,494
  -1,567
  -1,644
  -1,724
  -1,809
  -1,898
  -1,992
  -2,090
  -2,194
  -2,303
  -2,417
  -2,537
  -2,662
  -2,795
  -2,934
  -3,080
  -3,233
Cash from investing activities, $m
  -3,007
  -3,722
  -3,912
  -4,115
  -4,329
  -4,552
  -4,786
  -5,032
  -5,291
  -5,561
  -5,844
  -6,141
  -6,453
  -6,781
  -7,124
  -7,485
  -7,863
  -8,259
  -8,676
  -9,113
  -9,572
  -10,053
  -10,559
  -11,090
  -11,646
  -12,231
  -12,844
  -13,489
  -14,165
  -14,876
  -15,621
Free cash flow, $m
  1,110
  198
  408
  626
  859
  1,106
  1,370
  1,650
  1,948
  2,265
  2,602
  2,955
  3,336
  3,742
  4,172
  4,629
  5,115
  5,630
  6,177
  6,758
  7,373
  8,026
  8,718
  9,452
  10,229
  11,053
  11,925
  12,849
  13,827
  14,862
  15,957
Issuance/(repayment) of debt, $m
  -623
  826
  846
  885
  927
  970
  1,016
  1,064
  1,115
  1,169
  1,225
  1,285
  1,347
  1,413
  1,482
  1,554
  1,630
  1,710
  1,794
  1,883
  1,976
  2,073
  2,176
  2,284
  2,397
  2,516
  2,641
  2,772
  2,910
  3,055
  3,207
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  
  -655
  826
  846
  885
  927
  970
  1,016
  1,064
  1,115
  1,169
  1,225
  1,285
  1,347
  1,413
  1,482
  1,554
  1,630
  1,710
  1,794
  1,883
  1,976
  2,073
  2,176
  2,284
  2,397
  2,516
  2,641
  2,772
  2,910
  3,055
  3,207
Total cash flow (excl. dividends), $m
  453
  1,024
  1,254
  1,511
  1,785
  2,076
  2,386
  2,714
  3,063
  3,434
  3,828
  4,240
  4,683
  5,154
  5,654
  6,183
  6,745
  7,340
  7,972
  8,640
  9,349
  10,100
  10,894
  11,736
  12,626
  13,569
  14,566
  15,621
  16,737
  17,916
  19,163
Retained Cash Flow (-), $m
  -515
  -442
  -470
  -491
  -514
  -539
  -564
  -591
  -619
  -649
  -680
  -713
  -748
  -784
  -823
  -863
  -905
  -950
  -996
  -1,045
  -1,097
  -1,151
  -1,208
  -1,268
  -1,331
  -1,397
  -1,466
  -1,539
  -1,616
  -1,696
  -1,780
Prev. year cash balance distribution, $m
 
  1,555
  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
 
  2,137
  784
  1,020
  1,271
  1,538
  1,822
  2,123
  2,444
  2,785
  3,147
  3,527
  3,936
  4,370
  4,831
  5,320
  5,840
  6,391
  6,975
  7,595
  8,252
  8,948
  9,686
  10,468
  11,296
  12,172
  13,100
  14,082
  15,121
  16,220
  17,383
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
 
  2,049
  718
  888
  1,046
  1,192
  1,322
  1,434
  1,528
  1,600
  1,650
  1,675
  1,679
  1,661
  1,622
  1,562
  1,484
  1,391
  1,285
  1,169
  1,049
  926
  804
  686
  575
  474
  382
  302
  234
  177
  131
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

KT Corporation is a telecommunications service provider. The Company's segments include the Customer/Marketing Group, the Finance Business Group and the Others Group. The Customer/Marketing Group segment is engaged in providing various telecommunication services to individual/home/corporate customers and the convergence business. The Finance Business Group segment is engaged in providing various financial services, such as credit card. The Others Group segment includes security services, satellite service, information technology and network services, and satellite television services, as well as global business services, which provide global network services to multinational or domestic corporate customers and telecommunications companies. The Company's principal services include mobile voice and data telecommunications services; fixed-line services; credit card processing and other financial services, and various other services.

FINANCIAL RATIOS  of  KT ADR (KT)

Valuation Ratios
P/E Ratio 5.3
Price to Sales 0.2
Price to Book 0.3
Price to Tangible Book
Price to Cash Flow 0.8
Price to Free Cash Flow 2.4
Growth Rates
Sales Growth Rate 2.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -8.4%
Cap. Spend. - 3 Yr. Gr. Rate -2.6%
Financial Strength
Quick Ratio 2
Current Ratio 0
LT Debt to Equity 55.1%
Total Debt to Equity 71%
Interest Coverage 4
Management Effectiveness
Return On Assets 3.3%
Ret/ On Assets - 3 Yr. Avg. 1.4%
Return On Total Capital 3.6%
Ret/ On T. Cap. - 3 Yr. Avg. 0.6%
Return On Equity 6.4%
Return On Equity - 3 Yr. Avg. 0.7%
Asset Turnover 0.8
Profitability Ratios
Gross Margin 99.4%
Gross Margin - 3 Yr. Avg. 99.7%
EBITDA Margin 21.6%
EBITDA Margin - 3 Yr. Avg. 19.1%
Operating Margin 6.1%
Oper. Margin - 3 Yr. Avg. 3%
Pre-Tax Margin 5%
Pre-Tax Margin - 3 Yr. Avg. 0.7%
Net Profit Margin 3.1%
Net Profit Margin - 3 Yr. Avg. 0.3%
Effective Tax Rate 29.3%
Eff/ Tax Rate - 3 Yr. Avg. 27.3%
Payout Ratio 25.9%

KT stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the KT stock intrinsic value calculation we used $19626 million for the last fiscal year's total revenue generated by KT ADR. The default revenue input number comes from 2016 income statement of KT 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 KT stock valuation model: a) initial revenue growth rate of 5.4% 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 KT is calculated based on our internal credit rating of KT 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 KT 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 KT stock the variable cost ratio is equal to 45.9%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $9664 million in the base year in the intrinsic value calculation for KT 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 4.4% for KT ADR.

Corporate tax rate of 27% is the nominal tax rate for KT 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 KT 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 KT are equal to 76.9%.

Life of production assets of 5.2 years is the average useful life of capital assets used in KT 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 KT is equal to -7.1%. 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 - $9873 million for KT 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 474.696 million for KT 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 KT ADR at the current share price and the inputted number of shares is $6.3 billion.

RELATED COMPANIES Price Int.Val. Rating
SKM SK Telecom ADR 25.40 15.54  sell
DCM NTT DoCoMo ADR 25.34 11.62  str.sell
TLK Telekomunikasi 30.23 50.78  str.buy
CHT Chunghwa Telec 37.01 11.67  str.sell
PHI PLDT ADR 29.36 116.23  str.buy

COMPANY NEWS

▶ ETFs with exposure to KT Corp. : December 12, 2017   [Dec-12-17 01:30PM  Capital Cube]
▶ ETFs with exposure to KT Corp. : November 30, 2017   [Nov-30-17 02:03PM  Capital Cube]
▶ ETFs with exposure to KT Corp. : October 12, 2017   [Oct-12-17 10:38AM  Capital Cube]
▶ KT Getting Closer To Key Technical Measure   [Aug-29-17 03:00AM  Investor's Business Daily]
▶ KT Corp filed its FY2016 Annual Report on Form 20-F   [May-23-17 10:24PM  PR Newswire]
▶ [$$] What JPMorgan's Telcos Guru Likes Right Now   [May-03-17 09:32PM  Barrons.com]
▶ Here Are 5 Ways to Profit From a Breakout Telecom Sector   [Jan-18-17 06:02AM  TheStreet.com]
▶ New Strong Sell Stocks for January 13th   [Jan-13-17 11:05AM  Zacks]
▶ Is HD Supply Holdings Inc (HDS) Worthy Of Your Portfolio?   [Dec-08-16 01:24PM  Insider Monkey]
▶ Is Crown Holdings, Inc. (CCK) A Good Stock To Buy?   [Dec-01-16 12:19PM  Insider Monkey]
▶ Is Crown Holdings, Inc. (CCK) A Good Stock To Buy?   [12:19PM  at Insider Monkey]
▶ What Smart Money Thinks about Qorvo Inc (QRVO)?   [11:11AM  at Insider Monkey]
▶ What Hedge Funds Think about South Korean ADRs   [Jul-31-16 05:05PM  at Insider Monkey]
▶ KT CORP Financials   [01:04PM  EDGAR Online Financials]
▶ 6 things to know about Axium Healthcares new Lake Mary HQ   [Feb-08-16 03:05PM  at bizjournals.com]
▶ Kakao, KT Corp Jump: To Open Korea's First Internet Banks   [Nov-29  09:48PM  at Barrons.com]
▶ South Korea August Exports Flash Global Trade Warning   [Sep-01  05:00PM  at Investor's Business Daily]
▶ NEC and KT to Collaborate on 5G Networks   [Aug-05  11:33PM  ACN Newswire]
▶ ZTE and KT Sign Strategic Partnership on 5G in Korea   [Jul-16  01:11AM  Business Wire]
Financial statements of KT
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