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Is this Large Market Cap Stock target price reasonable for SK Telecom Co. Ltd. (NYSE:SKM)?

The company in question is, SK Telecom Co. Ltd. (NYSE:SKM) currently with a stock price of 21.5 (1.80% today). The market cap for SK Telecom Co. Ltd. is 15885.06, and is in the sector Technology, and Wireless Communications industry. The target price for SK Telecom Co. Ltd. is 22.31. Currently SK Telecom Co. Ltd. is trading with a P/E of 10.17, and a forward P/E of 11.5. Average volume for SK Telecom Co. Ltd. is 476.84 and so far today it is 584200.

Performance in the last year for SK Telecom Co. Ltd. has been -10.49%. For EPS growth, SK Telecom Co. Ltd. has seen a growth of -16.60%, and is looking to grow in the next year to -1.84%. More long term stats show that EPS growth has been -4.30% over the last five years and could be -4.50% for the next five years. SK Telecom Co. Ltd. has seen sales growth quarter over quarter at 0.30%, with EPS growth quarter over quarter at -26.50%. The 20-day simple moving average is -2.59%, with the 200-day simple moving average coming to 4.46%.

Since the IPO date for SK Telecom Co. Ltd. on the 6/27/1996, SK Telecom Co. Ltd. has seen performance year to date to be 6.70%. With SK Telecom Co. Ltd. trading at 21.5, the dividend yield is 4.51%, and the EPS is 2.11.

So could SK Telecom Co. Ltd., be undervalued? Well as said before P/E is 10.17. The PEG is *TBA, P/S is 1.04 and the P/B is at 1.01. The P/cash is 9.15, with P/free cash flow at 10.13.

SK Telecom Co. Ltd. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 1.1. This is with long term debt/equity at 0.44, and total debt/equity at 0.5.

In terms of margins, SK Telecom Co. Ltd. has a gross margin of 94.10%, an operating margin of 9.80% and a profit margin of 8.90%.Payout ratio for SK Telecom Co. Ltd. is 46.80%. Return on assets come to 5.30% with return on investment coming to 5.10%.

Insider ownership for SK Telecom Co. Ltd., is at 26.60% and institutional ownership comes to 11.60%. Outstanding shares are at 738.84. While shares float is 511.4. The float short is currently 0.16%, and short ratio is 1.76.

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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Mark Hines

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