LG Uplus: Stable Revenue, Thinner Margins Than 2022, and a Low Price-to-Book Multiple

Thesis

The data supports a picture of a steady, slow-growing business. Revenue has risen every year from ₩13.9T in 2021 to ₩15.5T in 2025, and trailing free cash flow of ₩1.5T is large relative to trailing net income of ₩535B. The dividend yield is 4.4%.

The data does not show strong profit growth. Operating margin fell from 7.8% in 2022 to 5.8% in 2025, and net income in 2025 (₩523.9B) is below 2021 (₩712.3B). Return on equity is 6.1%, which fits with the market paying only 0.7x book value. Investor flow, foreign ownership and short balance data are not available, so we cannot say how different investor groups are positioned.

Business overview

LG Uplus is a telecom company listed on KOSPI since April 21, 2008, and was founded on July 11, 1996. The CEO is listed as 홍범식. It has 436,611,361 listed shares and a market capitalization of about ₩6.35T at the ₩14,550 close on October 12, 2026. The 52-week range is ₩13,810 to ₩18,800, so the price sits near the low end of that range. Returns are -2.3% over one month, 0.1% over three months and -4.1% over one year. The data does not describe business segments, subscriber numbers or products.

Financial analysis

These figures come from filed financial statements (DART). Revenue grew 0.4% in 2022, 3.4% in 2023, 1.8% in 2024 and 5.7% in 2025, reaching ₩15.45T. Operating income was ₩1.08T in 2022, ₩998.0B in 2023, ₩863.1B in 2024 and ₩892.1B in 2025. Net income was ₩663.1B, ₩622.8B, ₩374.5B and ₩523.9B over the same years.

Trailing figures to H1 2026 show revenue of ₩15.36T, operating income of ₩948.9B (6.2% margin) and net income of ₩535.3B (3.5% margin). ROE is 6.1%, versus 9.3% in 2021. Liabilities to equity is 114.1%. Cash is ₩1.18T against borrowings of ₩5.74T. Free cash flow is ₩1.46T.

Valuation

The current P/E is 11.9x, P/B 0.7x, P/S 0.4x and EV/EBITDA 3.0x, with enterprise value of about ₩10.9T. At the end of 2025 the P/E was 12.3x and the P/B 0.7x, so the multiples are close to that single data point; earlier year-end multiples are not available.

Among peers, SK Telecom has a P/E of 22.9x and P/B of 1.1x. KT has a P/E of 9.7x and P/B of 0.7x. LG Uplus sits between them on P/E and matches KT on P/B. The other listed peers have no multiples in the data.

Catalysts

• The H1 2026 half-year report and preliminary earnings, filed in August 2026, show trailing operating income of ₩948.9B, which investors can compare against 2025.
• A securities registration statement was filed on October 8, 2026, though the data does not give its terms or purpose.
• A 5%+ holding report was filed on October 2, 2026, which points to a change in a significant shareholding, but details are not in the data.
• The company held several investor relations events from late July to early September 2026, suggesting ongoing investor communication.
• A news headline from The Korea Times (October 13, 2026) says the LG Uplus app AI now handles payments and roaming, but the data gives no financial impact.

Risks

• Operating margin has fallen from 7.8% in 2022 to 6.2% on a trailing basis, and the data does not show what would reverse this.
• Borrowings of ₩5.74T are about five times cash of ₩1.18T, and liabilities to equity is 114.1%.
• Return on equity of 6.1% is well below the 9.3% of 2021, which may limit how the market values the shares.
• The share price is near its 52-week low of ₩13,810 and is down 4.1% over one year, with no data on investor flows or short interest to explain this.
• The data has no guidance, subscriber or competitive information, so the drivers of future earnings cannot be assessed.

Closing view

The data shows a telecom company with steadily rising revenue, solid free cash flow and a 4.4% dividend yield, valued at 0.7x book and 11.9x earnings. Against that, margins and returns are lower than they were in 2021 and 2022, net income has not recovered to earlier levels, and debt is meaningful relative to cash. Missing information on flows, ownership and guidance limits how far conclusions can go, so the evidence is mixed rather than clearly pointing one way.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationLG Uplus: Stable Revenue, Thinner Margins Than 2022, and a Low Price-to-Book Multiple