Definitive Analysis
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Definitive Analysis

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KT Corporation (030200.KS)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$42,948.62 - $70,754.45$55,300.82
Multi-Stage$81,989.85 - $90,061.67$85,947.93
Blended Fair Value$70,624.38
Current Price$55,700.00
Upside26.79%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS23.38%14.63%3,562.052,151.181,839.081,430.511,268.131,246.051,219.40992.81751.73169.76
YoY Growth--65.59%16.97%28.56%12.80%1.77%2.19%22.82%32.07%342.81%-81.34%
Dividend Yield--7.18%5.71%6.24%4.01%4.49%6.28%4.47%0.00%2.56%0.57%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)929,241.00
(-) Cash Dividends Paid (M)534,313.00
(=) Cash Retained (M)394,928.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)185,848.20116,155.1369,693.08
Cash Retained (M)394,928.00394,928.00394,928.00
(-) Cash Required (M)-185,848.20-116,155.13-69,693.08
(=) Excess Retained (M)209,079.80278,772.88325,234.93
(/) Shares Outstanding (M)244.90244.90244.90
(=) Excess Retained per Share853.731,138.311,328.02
LTM Dividend per Share2,181.752,181.752,181.75
(+) Excess Retained per Share853.731,138.311,328.02
(=) Adjusted Dividend3,035.483,320.063,509.77
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-0.38%0.62%1.62%
Fair Value$42,948.62$55,300.82$70,754.45
Upside / Downside-22.89%-0.72%27.03%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)929,241.00935,009.07940,812.94946,652.84952,528.99958,441.61987,194.86
Payout Ratio57.50%64.00%70.50%77.00%83.50%90.00%92.50%
Projected Dividends (M)534,313.00598,405.34663,272.77728,922.45795,361.59862,597.45913,155.25

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.66%6.66%6.66%
Growth Rate-0.38%0.62%1.62%
Year 1 PV (M)555,455.82561,031.53566,607.23
Year 2 PV (M)571,479.03583,009.71594,655.55
Year 3 PV (M)582,966.39600,698.78618,787.15
Year 4 PV (M)590,446.93614,514.09639,309.60
Year 5 PV (M)594,399.57624,837.67656,510.14
PV of Terminal Value (M)17,184,668.8918,064,664.0218,980,345.85
Equity Value (M)20,079,416.6321,048,755.7922,056,215.54
Shares Outstanding (M)244.90244.90244.90
Fair Value$81,989.85$85,947.93$90,061.67
Upside / Downside47.20%54.31%61.69%

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