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KT

030200 · KOSPI · ₩030200 · KT

₩45,350▲ ₩650 (1.45%)End-of-day · Oct 28, 2026 · End-of-day prices.
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Valuation model · Discounted cash flow (DCF)

We use a 5-year discounted cash flow: the value of the cash the business is expected to produce, in today's money.

Fair value per share

₩98,191

vs the current price (₩45,350)

Enterprise value
₩33T
Equity value
₩25T
WACC
6.0%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal. This is not financial advice.

Why the model and the price differ

The model is 117% away from today's price. A gap this size usually means the market expects something the past figures don't show yet, or the model leaves something out. What we can see:

  • To match today's price of ₩45,350, the model needs an operating margin of 4.1% every year (it uses 6.6%).
  • Or revenue growth −11.3 points a year higher than assumed in each of the 5 years.
  • Analysts' forecasts for 2026: revenue ₩27T, operating profit ₩2.1T (7.6% margin) (1 broker). The model starts from the last 12 months reported.
  • Analysts' forecasts for 2027: revenue ₩28T, operating profit ₩2.3T (8.1% margin) (1 broker). The model starts from the last 12 months reported.
  • Today's P/E is 8.8× against a typical 8.6× over the last 10 years.

Treat the model as a starting point: change the assumptions to the story you believe, and compare with the multiples check below.

Bear / Base / Bull

Bear
₩29,266
−35.5%
Base
₩98,191
+116.5%
Bull
₩232,218
+412.1%

Bear: revenue growth 3 points lower every year, EBIT margin 2 points lower, WACC 1 point higher. Bull: the opposite.

Assumptions

Sign in to change the assumptions and see the results update. Sign in

Cycle options

Margin path

Every year uses the cycle-average margin (6.6%).

Revenue growth

  • 3.3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.

  • 3.2%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.

  • 3.1%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.

  • 3.1%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.

  • 3%

    How much sales grow that year, compared with the year before.

    Default: the last 3 years' revenue growth (3.3% a year, annual reports), fading to 3% by year 5.

Business

  • 6.6%

    Operating profit as a share of revenue.

    Default: through-the-cycle average of the last 12 months and the last 5 annual reports' operating margins.

  • 27.5%

    Share of operating profit paid as corporate tax.

    Default: Korea's top corporate tax rate (25%) plus 10% local income tax.

  • 1.3%

    The non-cash cost of wearing out equipment, added back to cash flow (% of revenue).

    Default: not in the statements, so 80% of capital spending (most spending replaces equipment that wears out).

  • 1.7%

    Money spent on factories, equipment, software and other long-term assets (% of revenue).

    Default: average of the last 3 annual reports (cash flow statements; equipment and intangibles).

  • 4.2%

    Stock and unpaid customer bills, less unpaid supplier bills, as a % of revenue. Each year's extra revenue ties up this much more cash.

    Default: working capital (current assets less cash and deposits, minus current liabilities other than borrowings) as a share of revenue, averaged over the last 3 years.

Discount rate

  • 2%

    How fast cash flows keep growing every year after year 5.

    Default: about Korea's long-run inflation plus real growth.

  • 4.11%

    Yield on Korea's 10-year government bond: the return with almost no risk.

    Default: Korea Treasury Bond 10-year yield on 2026-10-28.

  • 0.6

    How much the share moves when the market moves: 1 means just like the market.

    Default: 105 weeks of weekly returns against KOSPI (official index); raw beta 0.1, adjusted toward 1 and kept between 0.6 and 2.0.

  • 5.5%

    The extra return investors want for owning shares instead of bonds.

    Default: a typical premium for Korean shares.

  • 5.61%

    The interest rate the company would pay to borrow.

    Default: the 10-year yield plus a 1.5% credit spread.

Starting point

Revenue (TTM to H1 2026)
₩27T
Net debt (borrowings and leases − cash and deposits)
₩8.2T
+ Stakes and investments
₩1.6T
Associates, long-term financial assets and deposits (book value)
− Minority interests
₩1.8T
Shares
252,021,685
Share price
₩45,350
Market cap
₩11T

TTM = trailing 12 months: the last four reported quarters added together. "TTM to H1 2026" is the 12 months up to the latest quarterly or half-year report (H1 = to the end of June). Year 1 grows from there.

Past years and projection

Grey columns are reported results from the annual reports (after-tax EBIT at the model's tax rate), so you can check the growth and margin assumptions against the past. Years 1–5 are the model.

FY2023FY2024FY2025Year 1Year 2Year 3Year 4Year 5
Revenue₩26T₩26T₩28T₩28T₩29T₩30T₩31T₩32T
Growth2.8%0.2%6.9%3.3%3.2%3.1%3.1%3.0%
EBIT₩1.6T₩809B₩2.5T₩1.9T₩1.9T₩2T₩2.1T₩2.1T
EBIT margin6.3%3.1%8.7%6.6%6.6%6.6%6.6%6.6%
After-tax EBIT₩1.2T₩587B₩1.8T₩1.4T₩1.4T₩1.4T₩1.5T₩1.5T
+ Depreciation———₩368B₩380B₩392B₩404B₩416B
− Capital spending₩479B₩439B₩444B₩482B₩497B₩513B₩528B₩544B
− Working capital₩190B−₩984B₩712B₩38B₩38B₩38B₩39B₩39B
Free cash flow———₩1.2T₩1.2T₩1.3T₩1.3T₩1.4T
Discount factor———0.9430.8900.8390.7920.747
Present value———₩1.1T₩1.1T₩1.1T₩1T₩1T

Terminal value ₩37T, worth ₩28T today: 84% of enterprise value. It assumes spending settles at 110% of depreciation once growth slows to the terminal rate.

Cross-check: what the market has paid before

For cyclical businesses, analysts check a DCF against the multiples the stock has traded at through past cycles. Price / book is the usual anchor for them: P/E looks highest at the bottom of a cycle, when earnings are smallest, and lowest at the top. The price each band would give today:

LowTypicalHigh
Price / book (book value ₩73,741 a share)Now 0.61×₩36,5190.50×₩44,4240.60×₩59,3850.81×
Price / earnings (last 12 months: ₩5,141 a share)Now 8.82×₩32,2556.27×₩44,3218.62×₩76,49514.9×
P/E on run-rate earnings (Q2 2026 × 4: ₩6,985 a share)Now 6.49×₩43,8266.27×₩60,2198.62×₩103,93414.9×

Low, typical and high are the 10th percentile, middle and 90th percentile of month-end multiples since 2021, each against the latest report out by then, per share at today's share count; loss years and P/E above 100 are left out. Run-rate earnings are one quarter × 4, not a forecast. Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Sensitivity

Fair value per share as two inputs change; the middle is the current case.

WACC ↓ · Terminal growth →1.0%1.5%2.0%2.5%3.0%
5.0%₩104,070₩120,582₩142,573₩173,316₩219,340
5.5%₩88,538₩101,092₩117,218₩138,693₩168,714
6.0%₩76,112₩85,930₩98,191₩113,939₩134,911
6.5%₩65,947₩73,799₩83,388₩95,363₩110,743
7.0%₩57,478₩63,875₩71,544₩80,910₩92,606

Now (TTM)

Market cap
₩11T
Enterprise value
₩20T
P/E
8.8×
P/B
0.6×
P/S
0.4×
EV/EBITDA
—
Dividend yield
5.3%

Over time (at each year end)

20252024202320222021
Price₩52,600₩43,850₩34,400₩33,800₩30,600
Market cap₩13T₩11T₩8.7T₩8.5T₩7.7T
P/E7.7×23.5×8.6×6.7×5.7×
P/B0.8×0.7×0.5×0.5×0.5×
P/S0.5×0.4×0.3×0.3×0.3×
EV/EBITDA—————
Dividend yield4.6%4.6%———

Versus similar companies

CompanyP/EP/BP/SEV/EBITDADividend yield
KT8.8×0.6×0.4×—5.3%
SK Telecom22.4×1.1×1.0×5.0×2.1%
LG Uplus10.9×0.6×0.4×2.8×0.0%
Hyundai Futurenet36.6×0.5×1.2×—4.9%
NICE Information & Telecommunication5.7×0.8×0.3×1.8×3.0%
Korea Information & Communication7.9×0.8×0.3×2.0×3.8%
Dozn14.0×2.2×2.7×—1.3%
Similar companies (median)12.5×0.8×0.7×2.4×2.6%

Calculated from end-of-day prices and filed financial statements. Not a recommendation. This is not financial advice.

Also known as: KT / 030200 / KRX:030200

Source: KRX statistical information