KT Corp (KT): A Comprehensive Analysis of Its Market Value

KT Corp (NYSE:KT) is South Korea’s largest fixed-line telecom operator, serving around 13 million customers. It is the country’s largest broadband firm with 9.8 million customers and the second-largest wireless operator with 24.6 million subscribers. KT also has 9.5 million IPTV customers and a variety of non-telecom businesses. With a current stock price of $11.8 per share and a market cap of $5.80 billion, KT’s stock appears to be fairly valued.

The GF Value, a proprietary measure that indicates the intrinsic value of a stock, suggests that KT Corp (NYSE:KT) is trading at a fair value. By comparing the stock price to the GF Value calculation, it can be determined whether a stock is overvalued or undervalued. In this case, the stock is considered to be fairly valued, indicating that its long-term return is likely to be close to the rate of its business growth.

In terms of financial strength, KT Corp (KT) has a cash-to-debt ratio of 0.31, which is better than 50.13% of companies in the Telecommunication Services industry. This indicates fair financial health. The company has been profitable for 8 out of the past 10 years, with a revenue of $19.70 billion and an Earnings Per Share (EPS) of $1.84 in the past twelve months. Its operating margin is 6.98%, indicating fair profitability.

When looking at growth, KT Corp has an average annual revenue growth of 1.7%, which ranks worse than 56.61% of companies in the Telecommunication Services industry. However, its 3-year average EBITDA growth is 6.4%, which ranks better than 56.29% of companies in the industry.

In terms of return on invested capital (ROIC) versus weighted average cost of capital (WACC), KT Corp’s ROIC is 4.48 for the past 12 months, while the WACC is 3.96. This suggests that the company is creating value for shareholders.

In conclusion, KT Corp (NYSE:KT) stock appears to be fairly valued. The company’s financial condition is fair, and its profitability and growth are also ranked as fair.