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Is this Large Market Cap Stock target price reasonable for KT Corp. (NYSE:KT)?

The company in question is, KT Corp. (NYSE:KT) currently with a stock price of 15.81 (0.09% today). The market cap for KT Corp. is 7460.76, and is in the sector Technology, and Telecom Services – Foreign industry. The target price for KT Corp. is 13.33. Currently KT Corp. is trading with a P/E of 20.26, and a forward P/E of 10.46. Average volume for KT Corp. is 685.77 and so far today it is 152293.

Performance in the last year for KT Corp. has been 18.62%. For EPS growth, KT Corp. has seen a growth of 136.60%, and is looking to grow in the next year to 4.14%. More long term stats show that EPS growth has been -20.40% over the last five years and could be 4.10% for the next five years. KT Corp. has seen sales growth quarter over quarter at 4.50%, with EPS growth quarter over quarter at 66.00%. The 20-day simple moving average is 0.04%, with the 200-day simple moving average coming to 13.69%.

Since the IPO date for KT Corp. on the 5/26/1999, KT Corp. has seen performance year to date to be 32.66%. With KT Corp. trading at 15.81, the dividend yield is 1.39%, and the EPS is 0.78.

So could KT Corp., be undervalued? Well as said before P/E is 20.26. The PEG is 4.94, P/S is 0.37 and the P/B is at 0.77. The P/cash is 2.41, with P/free cash flow at 4.33.

KT Corp. ability to deal with debt shows that the current ratio is 1, and the quick ratio is 1. This is with long term debt/equity at 0.53, and total debt/equity at 0.74.

In terms of margins, KT Corp. has a gross margin of 100.00%, an operating margin of 5.50% and a profit margin of 1.80%.Payout ratio for KT Corp. is 30.10%. Return on assets come to 1.40% with return on investment coming to 4.60%.

Insider ownership for KT Corp., is at 5.90% and institutional ownership comes to 18.70%. Outstanding shares are at 472.2. While shares float is 472.2. The float short is currently 0.64%, and short ratio is 4.42.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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