SK Telecom CoHAM:KMBA +3.57%48 Interest Coverage is 6.11 as of Mar. 2026, which is 33% above its 10-year median of 4.60. GuruFocus rates HAM:KMBA with a GF Score™ of 48/100 and a GF Value™ of €16.91 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 286 Telecommunication Services companies, SK Telecom Co ranks worse than 70.28% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. SK Telecom Co's
Operating Income
for the
three
months ended in Mar. 2026 was €318 Mil. SK Telecom Co's Interest Expense for the
three
months ended in Mar. 2026 was €-52 Mil.
SK Telecom Co's interest coverage for the quarter that ended in Mar. 2026 was 6.11.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for SK Telecom Co's Interest Coverage or its related term are showing as below:
HAM:KMBA'
s Interest Coverage Range Over the Past 10 Years
Min: 2.6 Med: 4.6 Max: 5.45
Current: 2.6
HAM:KMBA's Interest Coverage is ranked worse than 70.28% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs HAM:KMBA: 2.60
SK Telecom Co (HAM:KMBA) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
SK Telecom Co Interest Coverage Related Terms
SK Telecom Co Interest Coverage Historical Data
* Premium members only.
The historical data trend for SK Telecom Co's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Telecom Services subindustry, SK Telecom Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SK Telecom Co Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, SK Telecom Co's Interest Coverage distribution charts can be found below:
* The bar in red indicates where SK Telecom Co's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
SK Telecom Co (HAM:KMBA) has a Interest Coverage of 6.11 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SK Telecom Co and its competitors. This is 33% above median its historical median of 4.60. Over the past decade, SK Telecom Co's Interest Coverage has ranged from 2.60 to 5.45. According to the industry distribution chart, SK Telecom Co ranks #201 out of 286 companies in the Telecommunication Services industry, placing it in the top 70.3%.
Is SK Telecom Co's Interest Coverage too high?
SK Telecom Co's current Interest Coverage of 6.11 is 33% above median its 10-year median of 4.60. Over the past 10 years, this metric has ranged from a low of 2.60 to a high of 5.45. The Telecommunication Services industry median Interest Coverage is 4.72. SK Telecom Co's value of 6.11 is 29.6% above this industry median. Based on the distribution chart, SK Telecom Co ranks #201 out of 286 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, SK Telecom Co has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SK Telecom Co's Interest Coverage compare to ?
According to the Telecommunication Services industry distribution chart, SK Telecom Co ranks #201 out of 286 companies for Interest Coverage. This places SK Telecom Co in the lower half of its industry. The industry median Interest Coverage is 4.72. SK Telecom Co's value of 6.11 is 29.6% above this benchmark. Historically, SK Telecom Co's own Interest Coverage has ranged from 2.60 to 5.45 over the past decade. While the company's 10-year median is 4.60 vs. the industry median of 4.72, SK Telecom Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SK Telecom Co's current Interest Coverage of 6.11 is 29.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on SK Telecom Co and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SK Telecom Co's current Interest Coverage is 6.11, which is 33% above median its own 10-year median of 4.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SK Telecom Co stock overvalued right now?
Based on GuruFocus' analysis, SK Telecom Co (HAM:KMBA) is currently considered Significantly Overvalued. The stock's GF Value™ is €16.91, compared to a current price of €29.00 — trading 71.5% above its estimated fair value. The current Interest Coverage is 6.11, which is 33% above median its 10-year median of 4.60 and 29.6% above the Telecommunication Services industry median of 4.72. SK Telecom Co's overall GF Score™ is 48/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For SK Telecom Co (HAM:KMBA), the current Interest Coverage is 6.11 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SK Telecom Co (HAM:KMBA) Overvalued in 2026?
Based on GuruFocus' analysis, SK Telecom Co stock appears to be overvalued.
The current stock price of €29.00 is trading 71.5% above its estimated GF Value™ of €16.91.
GuruFocus considers SK Telecom Co to be Significantly Overvalued.
Key valuation signals for HAM:KMBA:
Interest Coverage: 6.11 (33% above median its 10-year median of 4.60)
GF Value™: €16.91 vs. price of €29.00 (71.5% above fair value)
Industry Position: 29.6% above the Telecommunication Services median (#201 of 286)
No single metric tells the full story. See the HAM:KMBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SK Telecom is South Korea's largest wireless telecom operator, with 32 million mobile customers. The firm also owns SK Broadband (formerly Hanaro Telecom), which has 7.2 million broadband customers and 9.5 million pay TV customers (6.7 million IPTV and 2.8 million Cable TV). While the firm also purchased stakes in businesses in security and semiconductor memory production, as well as developing e-commerce and internet platform businesses, these were all spun off into the separate SK Square business in November 2021. The company was formed after SK Group purchased KT's mobile business in 1994.
48GF Score
Get the complete analysis for HAM:KMBA
Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HAM:KMBA has been successfully added to your 
