SK Telecom stock: fair value
SKMThe fair value of SK Telecom under our model is $46.06, the price is 26% below.
The fair value is an estimate from our model, not a price target.
Daily figure as of 13 Nov 2026
Valuation signal
Modestly undervaluedIn our model the price counts as cheap below $32.90 and expensive above $76.76 (uncertainty high, based on the price swings of the past year).
The two parts of the fair value come to $50.43 (cash-flow model) and $41.69 (industry comparison), and the gap between them shows how uncertain the estimate is. The price is below both.
Calculated with a cost of equity of 8.3%. At 9.3% the fair value would be $41.88, at 7.3% it would be $52.32.
Where the number comes from
Half from the cash-flow model, half from earnings times the industry P/E (16.3).
Ten-year cash-flow model from smoothed free cash flow and its past growth until it reaches 3.3%. Discounted at 8.3% (floor: government bond yield 3.3% plus 5 percentage points, since beta 0.8 times the risk premium would give less); no analyst estimates were available.
Calculate with your own assumptionsThe calculation step by step
With these figures the cash flow model arrives at $50.43 per share: free cash flow for the next ten years, each year discounted to today at 8.3%, plus the terminal value for the years after. The table explains the calculation; it is not a recommendation.
Calculation as a table
| Year | Free cash flow | Source | Discount factor | Present value (discounted at 8.3%) |
|---|---|---|---|---|
| 2026 | $1.01B | extrapolated at 1.0% | 0.9230 | $930.08M |
| 2027 | $1.02B | extrapolated at 1.7% | 0.8520 | $872.84M |
| 2028 | $1.05B | extrapolated at 2.2% | 0.7864 | $823.16M |
| 2029 | $1.07B | extrapolated at 2.5% | 0.7258 | $778.97M |
| 2030 | $1.1B | extrapolated at 2.8% | 0.6700 | $738.91M |
| 2031 | $1.14B | extrapolated at 2.9% | 0.6184 | $702.07M |
| 2032 | $1.17B | extrapolated at 3.1% | 0.5708 | $667.86M |
| 2033 | $1.21B | extrapolated at 3.1% | 0.5269 | $635.83M |
| 2034 | $1.25B | extrapolated at 3.2% | 0.4863 | $605.68M |
| 2035 | $1.29B | extrapolated at 3.2% | 0.4489 | $577.19M |
| Step | Value |
|---|---|
| Sum of present values (ten years) | $7.33B |
| Terminal value: cash flow 2035 × (1 + 3.3%) / (8.3% − 3.3%) | $26.58B |
| Present value of terminal value (× 0.4489) | $11.93B |
| Equity value (sum plus present value of terminal value) | $19.26B |
| Shares (diluted) | 381.98M |
| Value per share (equity value divided by shares) | $50.43 |
| Earnings per share, last twelve months | $2.55 |
| × 16.3 (industry P/E) | $41.69 |
| Fair value (average of both parts) | $46.06 |
The model uses free cash flow after interest, which belongs to shareholders, discounted at the cost of equity. Net debt is therefore not deducted again.
Data status and sources
- Score
- Daily value of 13 Nov 2026, recalculated nightly
- Price
- Closing price of 12 Nov 2026
- Latest annual report
- Fiscal year 2025, period end 31 Dec 2025
- Currency
- Amounts in US dollars, converted at the ECB reference rate of 12 Nov 2026 ($1 = ₩1,334.10)
- Source
- Financial statements, ratios and prices from Financial Modeling Prep (FMP), based on the company's reports. MEQIRI calculates the score and fair value from them.
Mandatory disclosures for this rating
- ; time horizon around 12 months
- Rated Neutral, published since 7 Nov 2026 (in the score history since 31 Dec 2018)
- Valuation signal Fairly valued since 12 Nov 2026, previously Undervalued
- End-of-day prices, metrics cached for up to 24 hours
- Score and fair value are estimates from a disclosed model. They are not facts and not a price target.
- Produced by SSM Ventures UG (haftungsbeschränkt), responsible person Sven Brostmeyer, Managing Director, automatically according to the disclosed model.
- Not investment advice. Losses up to and including a total loss are possible. Personal circumstances are not considered.