한국 이동통신시장에 대한 기업가치평가에 관한 사례 연구 = A case study of equity valuation for Korean mobile telecommunication industry

다국어 초록 (Multilingual Abstract)

This study is a case analysis report of equity valuation for Korean mobile telecommunication industry. There are three companies in Korean mobile telecommunication industry, that is, SK Telecom(SKT), KT Freetel(KTF), LG Telecom(LGT). We will conduct an equity valuation of these companies in this study.
This case study begins to discuss the theoretical background of Residual Operating Income (ReOI) valuation model which is derived from Ohlson(1995) model. Then, we will analyze the implemental framework of ReOI valuation model. Since residual income is created by operating activity, ReOI model focuses on operating income ignoring the effects of financial activity. We will explain how to separate the results of operating activity from them of financial activity within balance sheet and income statement. This will lead to reformulated financial statements(both of balance sheet and income statement). After analyzing the reformulated financial statements, we will show where those three companies are and explain how to forecast the main value drivers for ReOI model. Lastly, we will finalize our equity valuation by incorporating the forecasts into ReOI valuation model.
Although there are many theoretical and empirical research papers regarding to the equity valuation, there is no case analysis report for the practical implementation of equity valuation model for Korean companies. This case study aims to fill this void in the academic literature. This case study will contribute to both industry and academic communities by describing how to implement theoretical valuation model in practice.

Keywords: Equity Valuation, Forecasting, Residual Operating Income Valuation Model, Reformulation of Financial Statements

목차 (Table of Contents)

• Table of Contents
• 1.Introduction 1
• 2.Equity Valuation Model 4
• 2.1.Theoretical background of Residual Income Valuation Model and its Modification to Residual Operating Income Model 4
• 2.2.The Reformulation Principle and Steps 7
• 2.3.The Analysis of Profitability and Growth in the Equity Valuation 8
• 3.Industry and Company Analysis 13
• 3.1.Understanding of Korean Mobile Telecommunication Industry 13
• 3.2.Overview of 3 Big Mobile Telecommunication Companies in Korea 17
• 4.Reformulation of Financial Statements 24
• 4.1.Reformulating the balance sheet, income statement 24
• 4.2.Reformulated financial statements(SKT, KTF, LGT) 26
• 5.Financial Statement Analysis 32
• 5.1.The Comparison Analysis of Profitability 32
• 5.2.The Comparison Analysis of Growth 35
• 6.Forecasting and Equity Valuation 37
• 6.1.A Forecasting Template 37
• 6.2.Sales Growth and Sales Prediction 38
• 6.3.Forecasting and Equity Valuation 41
• 7.Conclusion 47
• References 48