KT Corporation offers mobile voice and data telecommunication services in Korea, including fixed-line telephone services, local, domestic long-distance and international long-distance fixed-line, and voice over Internet protocol telephone services. The company was founded in 1981 and is based in Seongnam, South Korea.
KT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Kt Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Kt Corp ranked in the 100th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. The most interesting components of our discounted cash flow analysis for Kt Corp ended up being:
The company's balance sheet shows it gets 30% of its capital from equity, and 70% of its capital from debt. Notably, its equity weight is greater than only 22.53% of US equities in the Communication Services sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 4 years, is -0.18% -- higher than only 9.32% of stocks in our DCF forecasting set.
Kt Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 2.05% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
TEO, NTTYY, IRDM, TLK, and FTRCQ can be thought of as valuation peers to KT, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.
According to a new report published by Allied Market Research, titled, "5G Technology Return on Investment Market by Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2020–2026," the 5G technology return on investment market size was valued at $2.0 billion
KT Corporation ([[KT]] +1.1%) expands strategic partnership with Thailand's Jasmine Group to explore growing business opportunities in the Southeast Asian and other global markets.KT signed strategic collaboration agreement with Jasmine Telecom Systems last week to develop a new internet data center or IDC business in Thailand.Under the agreement, KT and JTS will prepare to...
SEOUL, South Korea, Sept. 16, 2020 /PRNewswire/ -- KT Corporation (KRX: 030200; NYSE: KT), South Korea's largest telecommunications company, has introduced a smart robot food server, powered by its Artificial Intelligence (AI) and other latest technologies, at a Seoul franchise of Mad for…
SEOUL, South Korea, Aug. 26, 2020 /PRNewswire/ -- KT Corporation (KRX: 030200; NYSE: KT), South Korea's largest telecommunications company, showcased the country's first drive-in commencement ceremony for 2019 graduates who could not have a traditional celebration because of the ongoing…