SK Telecom CoFRA:KMBA -4.41%81 Return-on-Tangible-Equity is 13.73% as of Mar. 2026, which is 18% below its 10-year median of 16.74. GuruFocus rates FRA:KMBA with a GF Score™ of 81/100 and a GF Value™ of €15.99 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 326 Telecommunication Services companies, SK Telecom Co ranks worse than 70.86% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. SK Telecom Co's annualized net income for the quarter that ended in Mar. 2026 was €748 Mil. SK Telecom Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €5,450 Mil. Therefore, SK Telecom Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.73%.
The historical rank and industry rank for SK Telecom Co's Return-on-Tangible-Equity or its related term are showing as below:
FRA:KMBA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.35 Med: 16.74 Max: 23.73
Current: 4.35
During the past 13 years, SK Telecom Co's highest Return-on-Tangible-Equity was 23.73%. The lowest was 4.35%. And the median was 16.74%.
FRA:KMBA's Return-on-Tangible-Equity is ranked worse than 70.86% of 326
companies
in the Telecommunication Services industry
Industry Median: 14.005
vs FRA:KMBA: 4.35
SK Telecom Co (FRA:KMBA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
SK Telecom Co Return-on-Tangible-Equity Related Terms
SK Telecom Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for SK Telecom Co's Return-on-Tangible-Equity 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.
FRA:KMBA vs TMUS, VZ, T: Return-on-Tangible-Equity Comparison
For the Telecom Services subindustry, SK Telecom Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, SK Telecom Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where SK Telecom Co's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 13.73% mean?
SK Telecom Co (FRA:KMBA) has a Return-on-Tangible-Equity of 13.73% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SK Telecom Co and its competitors. This is 18% below median its historical median of 16.74. Over the past decade, SK Telecom Co's Return-on-Tangible-Equity has ranged from 4.35 to 23.73. According to the industry distribution chart, SK Telecom Co ranks #231 out of 326 companies in the Telecommunication Services industry, placing it in the top 70.9%.
Is SK Telecom Co's Return-on-Tangible-Equity too high?
SK Telecom Co's current Return-on-Tangible-Equity of 13.73% is 18% below median its 10-year median of 16.74. Over the past 10 years, this metric has ranged from a low of 4.35 to a high of 23.73. The Telecommunication Services industry median Return-on-Tangible-Equity is 14.01. SK Telecom Co's value of 13.73% is 2% below this industry median. Based on the distribution chart, SK Telecom Co ranks #231 out of 326 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, SK Telecom Co has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SK Telecom Co's Return-on-Tangible-Equity compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, SK Telecom Co ranks #231 out of 326 companies for Return-on-Tangible-Equity. This places SK Telecom Co in the lower half of its industry. The industry median Return-on-Tangible-Equity is 14.01. SK Telecom Co's value of 13.73% is 2% below this benchmark. Historically, SK Telecom Co's own Return-on-Tangible-Equity has ranged from 4.35 to 23.73 over the past decade. While the company's 10-year median is 16.74 vs. the industry median of 14.01, SK Telecom Co has consistently been below 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 Return-on-Tangible-Equity for a Telecommunication Services company?
The median Return-on-Tangible-Equity among Telecommunication Services companies is 14.01, based on 326 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SK Telecom Co's current Return-on-Tangible-Equity of 13.73% is 2% below 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on SK Telecom Co and its competitors. For the Telecommunication Services industry, the median Return-on-Tangible-Equity is 14.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SK Telecom Co's current Return-on-Tangible-Equity is 13.73%, which is 18% below median its own 10-year median of 16.74. 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 (FRA:KMBA) is currently considered Significantly Overvalued. The stock's GF Value™ is €15.99, compared to a current price of €26.00 — trading 62.6% above its estimated fair value. The current Return-on-Tangible-Equity is 13.73%, which is 18% below median its 10-year median of 16.74 and 2% below the Telecommunication Services industry median of 14.01. SK Telecom Co's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For SK Telecom Co (FRA:KMBA), the current Return-on-Tangible-Equity is 13.73% 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 (FRA:KMBA) Overvalued in 2026?
Based on GuruFocus' analysis, SK Telecom Co stock appears to be overvalued.
The current stock price of €26.00 is trading 62.6% above its estimated GF Value™ of €15.99.
GuruFocus considers SK Telecom Co to be Significantly Overvalued.
Key valuation signals for FRA:KMBA:
Return-on-Tangible-Equity: 13.73% (18% below median its 10-year median of 16.74)
GF Value™: €15.99 vs. price of €26.00 (62.6% above fair value)
Industry Position: 2% below the Telecommunication Services median (#231 of 326)
No single metric tells the full story. See the FRA: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.
81GF Score
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