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SKMSK Telecom Co.,Ltd
$31.05$11.9B
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  4. Financial Ratios

SK Telecom Co.,Ltd (SKM) Financial Ratios

Latest Ratios: P/E Ratio 46.2x · EV/EBITDA 6.0x · ROE 3.4%. (1998–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

SKM Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$11.9B$7.9B$8.2B$8.4B$8.1B$10.4B$9.7B$9.0B$10.3B$10.8B$8.0B
Enterprise Value$18.0B$9.29T$8.75T$9.21T$9.21T$9.51T$10.80T$9.71T$8.16T$6.02T$5.87T
P/E Ratio →46.190.020.010.010.010.010.010.010.000.000.00
P/S Ratio1.050.000.000.000.000.000.000.000.000.000.00
P/B Ratio1.440.000.000.000.000.000.000.000.000.000.00
P/FCF10.540.000.000.000.000.010.000.020.010.010.01
P/OCF4.580.000.000.000.000.000.000.000.000.000.00

P/E links to full P/E history page with 30-year chart

SKM EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.540.490.520.530.570.670.630.480.340.34
EV / EBITDA5.962.021.621.671.721.712.071.941.981.351.34
EV / EBIT25.208.544.044.905.894.769.048.721.901.632.46
EV / FCF—5.403.464.934.365.525.0620.717.866.065.26

SKM Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin19.0%19.0%87.3%87.4%87.0%86.7%86.5%84.5%82.7%82.3%81.4%
Operating Margin6.3%6.3%9.4%10.0%9.2%8.6%6.4%6.4%4.9%7.0%7.6%
Net Profit Margin2.4%2.4%7.0%6.2%5.3%14.4%9.4%5.8%18.5%14.8%9.8%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE3.4%3.4%10.4%9.0%7.5%13.1%6.4%3.9%15.5%15.2%10.6%
ROA1.4%1.4%4.1%3.6%2.9%6.1%3.3%2.0%8.3%8.0%5.6%
ROIC3.8%3.8%6.0%6.2%5.5%3.8%2.3%2.3%2.3%4.0%4.4%
ROCE4.8%4.8%7.6%7.6%6.8%4.5%2.7%2.7%2.7%4.8%5.4%

SKM Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.860.860.910.870.910.840.500.480.430.410.46
Debt / EBITDA2.342.342.001.932.071.872.342.192.341.671.69
Net Debt / Equity—0.740.740.750.760.770.440.430.360.330.36
Net Debt / EBITDA2.022.021.621.671.721.712.071.941.981.341.34
Debt / FCF—5.393.464.934.365.515.0520.697.856.055.25
Interest Coverage2.802.804.964.894.916.884.482.8313.6911.477.76

SKM Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio1.031.030.810.940.900.911.071.041.160.870.93
Quick Ratio1.001.000.790.920.880.881.051.021.120.830.89
Cash Ratio0.260.260.250.250.260.200.360.290.400.310.32
Asset Turnover—0.580.590.580.550.540.340.350.400.520.55
Inventory Turnover83.7183.7110.8912.3513.5410.8812.6614.6910.1211.3912.27
Days Sales Outstanding———————————

SKM Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield3.5%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
Payout Ratio153.9%153.9%65.9%70.8%99.1%42.7%49.3%80.9%22.6%27.2%42.1%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield2.2%4981.7%15207.1%12850.5%11105.7%11920.8%6968.2%9679.4%30327.7%24177.1%20745.9%
FCF Yield9.5%21860.0%30882.0%22283.9%26138.2%16494.0%22094.0%5196.7%10105.8%9245.9%13971.4%
Buyback Yield0.0%0.0%100.0%100.0%0.0%100.0%100.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield3.5%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%100.0%
Shares Outstanding—$383M$389M$391M$393M$392M$398M$394M$386M$388M$386M

Key Metrics

Growth RegimeMixed
ProfitabilityStrained
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Regulatory and competitive saturation

Premium Valuation Lacks Earnings Support

As reported in recent financial data, SKM trades at a trailing P/E of 48.15, a multiple that appears disconnected from its stagnant revenue growth and suggests investors are pricing in speculative AI-driven upside rather than the underlying utility-like cash flows of the core telecommunications business.

The current valuation multiple stands in stark contrast to regional peers like KT Corporation, which trades at a significantly lower P/E, implying that the market is assigning a premium to SKM's strategic pivot toward AI and platform services. Investors should monitor whether this valuation can be sustained if the company fails to demonstrate a clear path to margin expansion through these new initiatives.

Margin Volatility Obscures Earning Power

Based on quarterly filings, SKM's net margin has fluctuated significantly, reaching a low of -4.0% in 2025Q3, which indicates that the company's true earning power is currently masked by non-recurring items and the high operational overhead associated with its diverse, non-core business ventures.

The inconsistency in operating margins, which swung from 0.7% to 12.2% within a year, suggests that the company lacks the predictable profitability profile typical of a dominant market incumbent. This volatility warrants further investigation into whether the core cellular business is being cannibalized by the capital-intensive expansion into T-commerce and metaverse platforms.

Capital Efficiency Remains Subdued

According to historical performance metrics, SKM's ROIC has struggled to exceed 2.1% in recent quarters, a level that suggests the company is failing to generate returns above its cost of capital while maintaining its massive physical network infrastructure in a highly saturated South Korean market.

The persistent decay in return on invested capital highlights the difficulty of balancing aggressive 5G infrastructure spending with the need to deliver shareholder value. Unless the company can successfully monetize its network through higher-margin AI services, the current trend suggests a long-term erosion of capital efficiency.

Working Capital Dynamics Reveal Inefficiency

As evidenced by the reported financial statements, SKM's cash conversion cycle has remained elevated, often exceeding 50 days, which indicates that the company faces structural challenges in managing its working capital compared to more agile, less infrastructure-dependent technology firms in the broader communication services sector.

The variability in days sales outstanding and days inventory outstanding suggests that the company's operational leverage is being hampered by its diverse business model. Investors should monitor whether the integration of T-commerce and portal services is creating unnecessary friction in the company's ability to convert revenue into liquid cash.

Misapplication of Utility Valuation Metrics

The most commonly misapplied metric for SKM is the dividend yield, which, while attractive at 3.4%, obscures the underlying volatility in free cash flow and the significant capital expenditure requirements that threaten the long-term sustainability of these payouts in a maturing 5G market.

Analysts often treat SKM as a stable income-generating utility, but this ignores the company's aggressive and often unpredictable capital allocation toward non-core technology ventures. A more appropriate focus would be on free cash flow yield, which better captures the company's ability to fund its strategic pivots without relying on external financing.

Download Financial Ratios Data

Includes 30+ ratios · 28 years · Updated daily

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SKM — Frequently Asked Questions

Quick answers to the most common questions about buying SKM stock.

What is SK Telecom Co.,Ltd's P/E ratio?

SK Telecom Co.,Ltd's current P/E ratio is 46.2x. The historical average is 0.0x. This places it at the 100th percentile of its historical range.

What is SK Telecom Co.,Ltd's EV/EBITDA?

SK Telecom Co.,Ltd's current EV/EBITDA is 6.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 1.3x.

What is SK Telecom Co.,Ltd's ROE?

SK Telecom Co.,Ltd's return on equity (ROE) is 3.4%. The historical average is 13.6%.

Is SKM stock overvalued?

Based on historical data, SK Telecom Co.,Ltd is trading at a P/E of 46.2x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What is SK Telecom Co.,Ltd's dividend yield?

SK Telecom Co.,Ltd's current dividend yield is 3.52% with a payout ratio of 153.9%.

What are SK Telecom Co.,Ltd's profit margins?

SK Telecom Co.,Ltd has 19.0% gross margin and 6.3% operating margin.

How much debt does SK Telecom Co.,Ltd have?

SK Telecom Co.,Ltd's Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.