I got tired of looking at my screen today and decided do some digging into the numbers for KTC vs. SKM.
Looking at the numbers for SKM based on 2006 revenues and earnings, I came up with a PSR of 1.75 and a P/B of 2X.
A P/Tangible book is a little less generous at over 3X, based on the tangible book per ADR of $7.93 and stated book of 12.50. A PE of 12.8, again all based on annual 2006 results. For some reason, based on the ADR ratio of 1/9, it appears the US ADR’s trade at a premium to their Korean Won counterpart that is about 8% ($27.08 US price vs. Korean price conversion of $24.90 per ADR.
On KTC I came up with a PSR of just under 1 (11,780,900,000,000 KW rev in 2006 and market value of 11,758,315,350,000 KW).
A P/B of 1.37 and a P/tangible book of 1.45. The PE of 9.4, again all based on annual 2006 results.
Somehow after going thru the numbers and looking at Q1 2007 for both Companies, my tendency is KTC looks like the better value with better prospects for earnings and revenue growth. May retest lows on this dip at which time I'll decide on potential add to. |
