Sarah Ketterer (Trades, Portfolio), is a contrarian value investor and co-founder of the Causeway International Value (Trades, Portfolio) Fund. During the second quarter, Ketterer added 95,847 shares of SK Telecom (XKRX:017670)Â for an average price of 210997 South Korean won ($189.1) per share. The trade had a 0.33% impact on Ketterer’s portfolio. She now owns 777,608 shares of the company.
SK Telecom has a market cap of 15.43 trillion won, an enterprise value of 20.97 trillion won, a P/E ratio of 9.98, and a P/B ratio of 1.09.
SK Telecom is a South Korean wireless company that is headquartered in the Jung District, in Seoul, South Korea. The company was originally founded on April 20, 1984, as Korea Mobile Telecommunications. In 1997, the company changed its name to SK Telecom. The company is South Korea’s leading telecommunications company, and its goal is to become one of the top 100 telecommunications companies in the world by having a market value of over 100 trillion won (USD $89 billion) by the year 2020.
According to GuruFocus, SK Telecom has a 6 of 10 financial rating with a cash to debt ratio of 0.23, Â an equity to asset ratio of 0.53 and an interest coverage ratio of 5.08, ranking it lower than 56% of the 371 companies in the global telecom services industry.
SK Telecom has a Graham number of 270446.47 won, a median P/S value of 225034.17 won, a projected FCF of 313324.6 won and a dividend yield of 4.58, which ranks the company above 62% of the companies in the global telecom services industry.
It is likely that Ketterer decided to add 95,847 shares of SK Telecom to her holdings because the company has 32 years of operating experience. It is South Korea's largest telecommunications company, the company is paying a healthy dividend yield and it has set big goals for its future. If SK Telecom reaches its goal of obtaining a market value of 100 trillion won by 2020, the company's market price will also rise. Since Ketterer added to her stake in SK Telecom, the company's stock price has risen by an estimated 3%.
Below is a Peter Lynch chart that shows SK Telecom is trading below its intrinsic value.
Disclosure:Â Author does not own any shares of this company.
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