Sejong Telecom Return On Equity vs. Current Valuation

036630 Stock  KRW 433.00  1.00  0.23%   
Taking into consideration Sejong Telecom's profitability measurements, Sejong Telecom may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in December. Profitability indicators assess Sejong Telecom's ability to earn profits and add value for shareholders.
For Sejong Telecom profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sejong Telecom to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sejong Telecom utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sejong Telecom's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sejong Telecom over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Sejong Telecom's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sejong Telecom is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sejong Telecom's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sejong Telecom Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sejong Telecom's current stock value. Our valuation model uses many indicators to compare Sejong Telecom value to that of its competitors to determine the firm's financial worth.
Sejong Telecom is number one stock in return on equity category among its peers. It also is the top company in current valuation category among its peers . Comparative valuation analysis is a catch-all model that can be used if you cannot value Sejong Telecom by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Sejong Telecom's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Sejong Current Valuation vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Sejong Telecom

Return On Equity

 = 

Net Income

Total Equity

 = 
-11.26
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Sejong Telecom

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
240.02 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Sejong Current Valuation vs Competition

Sejong Telecom is the top company in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Communication Services industry is presently estimated at about 1.64 Trillion. Sejong Telecom retains roughly 240.02 Billion in current valuation claiming about 15% of stocks in Communication Services industry.

Sejong Telecom Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sejong Telecom, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sejong Telecom will eventually generate negative long term returns. The profitability progress is the general direction of Sejong Telecom's change in net profit over the period of time. It can combine multiple indicators of Sejong Telecom, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Sejong Telecom, Inc. provides integrated telecommunication services in South Korea. Sejong Telecom, Inc. was founded in 1992 and is headquartered in Seoul, South Korea. SEJONG TELECOM is traded on Korean Securities Dealers Automated Quotations in South Korea.

Sejong Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sejong Telecom. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sejong Telecom position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sejong Telecom's important profitability drivers and their relationship over time.

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Other Information on Investing in Sejong Stock

To fully project Sejong Telecom's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sejong Telecom at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sejong Telecom's income statement, its balance sheet, and the statement of cash flows.
Potential Sejong Telecom investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sejong Telecom investors may work on each financial statement separately, they are all related. The changes in Sejong Telecom's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sejong Telecom's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.