Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

KT Corporation (030200.KS)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$38,494.07 - $60,909.47$48,728.50
Multi-Stage$66,805.88 - $73,298.67$69,990.09
Blended Fair Value$59,359.29
Current Price$55,700.00
Upside6.57%
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 Rate7.48%7.48%7.48%
Growth Rate-0.38%0.62%1.62%
Fair Value$38,494.07$48,728.50$60,909.47
Upside / Downside-30.89%-12.52%9.35%

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 Rate7.48%7.48%7.48%
Growth Rate-0.38%0.62%1.62%
Year 1 PV (M)551,244.94556,778.37562,311.81
Year 2 PV (M)562,847.15574,203.67585,673.61
Year 3 PV (M)569,808.31587,140.47604,820.57
Year 4 PV (M)572,744.88596,090.49620,142.62
Year 5 PV (M)572,208.00601,509.72631,999.71
PV of Terminal Value (M)13,531,989.0314,224,937.1814,945,986.65
Equity Value (M)16,360,842.3117,140,659.8917,950,934.97
Shares Outstanding (M)244.90244.90244.90
Fair Value$66,805.88$69,990.09$73,298.67
Upside / Downside19.94%25.66%31.60%

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