Upside case
Bull case
$30960+146073.5%
KT would need investors to value it at roughly 10x earnings — about 10x more generous than today's 0x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
KT Corporation (KT) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
5
analysts
4 bullish · 0 bearish · 5 covering KT
Strong Buy
0
Buy
4
Hold
1
Sell
0
Strong Sell
0
Consensus Target
—
— vs today
Scenario Range
$9476 – $30960
Model bear to bull value window
Coverage
5
Published analyst ratings
Valuation Context
0.0x
Forward P/E · Market cap $10.2B
KT price targets
Three scenarios for where KT stock could go
Current
~$21
Confidence
52 / 100
Updated
May 1, 2026
Where we are now
Current · $21
Bear
$9476
Base
$27175
Bull
$30960
Market caseClosest to today
Base case
$27175+128203.0%
At 9x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$9476+44641.0%
The bear case assumes sentiment or fundamentals disappoint enough to push KT down roughly 44641% from the current price.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
KT Corporation
KT · NYSECommunication ServicesTelecommunications ServicesDecember year-end
KT Corporation is South Korea's second-largest telecommunications provider offering integrated telecom services including mobile, broadband, and media content. It generates revenue primarily from mobile services (~50% of revenue), fixed-line and broadband services (~30%), and media/content services including IPTV (~20%). The company benefits from extensive nationwide infrastructure—including its fiber-optic network—and established customer relationships in Korea's concentrated telecom market.
Market Cap
$10.2B
Revenue TTM
$28.21T
Net Income TTM
$1.73T
Net Margin
6.1%
KT Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
64%Exceptional
12 quarters tracked
Revenue Beat Rate
82%Exceptional
vs consensus estimates
Avg EPS Surprise
+0.7%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q1 2026
Q1 2026
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 1 of 4Q1 2026
EPS
$0.16/$0.18
Revenue
$4.7B/$4.7B
Q1 2026
EPS
$0.16/$0.18
Revenue
$4.7B/$4.7B
Q1 2026
EPS
$0.30/$0.18
Revenue
$4.7B/$4.7B
Q2 2026
EPS
$0.16/$0.18
Revenue
$4.7B/$4.7B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q1 2026 | $0.16/$0.18 | -9.4% | $4.7B/$4.7B | +0.6% |
| Q1 2026 | $0.16/$0.18 | -11.7% | $4.7B/$4.7B | +0.6% |
| Q1 2026 | $0.30/$0.18 | +68.3% | $4.7B/$4.7B | +0.2% |
| Q2 2026 | $0.16/$0.18 | -9.4% | $4.7B/$4.7B | +0.6% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$29.72T
+5.3% YoY
FY2
$31.32T
+5.4% YoY
EPS Outlook
FY1
$3229.18
-60.6% YoY
FY2
$3174.56
-1.7% YoY
Trailing FCF (TTM)$984.0B
FCF Margin: 3.5%
Next Earnings
May 8, 2026
Expected EPS
$0.51
Expected Revenue
$4.6B
KT beat EPS estimates in 1 of 4 tracked quarters. Mixed delivery makes the upcoming report a key data point for re-rating.
KT Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2022
Total disclosed revenue $26.23T
Product Mix
Latest annual revenue by segment or product family
Segment breakdown not available for this company.
Geographic Mix
Latest annual revenue by reported region
Country of domicile
99.4%
+3.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Country of domicile is the largest reported region at 99.4%, up 3.8% YoY.
KT Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $41804 — implies +196624.6% from today's price.
Upside to Fair Value
196624.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
KT
8.6x
vs
S&P 500
25.2x
66% discount
vs Communication Services Trailing P/E
KT
8.6x
vs
Communication Services
15.5x
45% discount
vs KT 5Y Avg P/E
Today
8.6x
vs
5Y Average
0.0x
+113182% premium
Forward PE
0.0x
S&P 500
19.1x
-100%
Communication Services
13.1x
-100%
5Y Avg
—
—
Trailing PE
8.6x
S&P 500
25.2x
-66%
Communication Services
15.5x
-45%
5Y Avg
0.0x
+113182%
PEG Ratio
0.39x
S&P 500
1.75x
-78%
Communication Services
0.66x
-41%
5Y Avg
—
—
EV/EBITDA
3.7x
S&P 500
15.3x
-76%
Communication Services
8.7x
-58%
5Y Avg
1.4x
+155%
Price/FCF
10.9x
S&P 500
21.3x
-49%
Communication Services
11.6x
-6%
5Y Avg
0.0x
+216719%
Price/Sales
0.5x
S&P 500
3.1x
-83%
Communication Services
1.0x
-51%
5Y Avg
0.0x
+189261%
Dividend Yield
3.77%
S&P 500
1.88%
+101%
Communication Services
3.38%
+11%
5Y Avg
—
—
| Metric | KT | S&P 500 | Communication Services | 5Y Avg KT |
|---|---|---|---|---|
| Forward PE | 0.0x | 19.1x-100% | 13.1x-100% | — |
| Trailing PE | 8.6x | 25.2x-66% | 15.5x-45% | 0.0x+113182% |
| PEG Ratio | 0.39x | 1.75x-78% | 0.66x-41% | — |
| EV/EBITDA | 3.7x | 15.3x-76% | 8.7x-58% | 1.4x+155% |
| Price/FCF | 10.9x | 21.3x-49% | 11.6x | 0.0x+216719% |
| Price/Sales | 0.5x | 3.1x-83% | 1.0x-51% | 0.0x+189261% |
| Dividend Yield | 3.77% | 1.88% | 3.38% | — |
KT trades above S&P 500 benchmarks on 0 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolKT Financial Health
Verdict
Adequate
KT earns 8.7% operating margin on regulated earnings, 3.8% dividend yield. Utilities carry higher leverage than industrials as a structural feature of the business model.
Regulated Operations
Revenue, regulated margins, and earnings
Revenue (TTM)
Trailing-twelve-month sales base
$28.21T
Revenue Growth
TTM vs prior year
+6.7%
Operating Margin
Operating income divided by revenue
8.7%
Net Margin
Net income divided by revenue
6.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$8195.98
Operating Margin
Operating income over revenue — primary regulated earnings signal
8.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
6.9%
ROA
Return on assets, trailing twelve months
4.1%
Cash & Equivalents
Liquid assets on the balance sheet
$3.51T
Net Debt
Total debt minus cash
$8.70T
Debt Serviceability
Net debt as a multiple of annual free cash flow
8.8× FCF
Regulated utilities typically operate at 3–5× net debt/FCF — this is structural, not a risk flag.
ROE
Return on equity, trailing twelve months
9.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
5.5%
Dividend
3.8%
Buyback
1.7%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$253.4B
Dividend / Share
Annualized trailing dividend per share
$1161.87
Payout Ratio
Share of earnings distributed as dividends
33.4%
Shares Outstanding
Declining as buybacks retire shares
504M
All figures from the trailing twelve months. Utilities operate with structural leverage (3–5× net debt/FCF) due to regulated, predictable cash flows.
Open full ratios pageKT Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Regulatory and Political Risk
The South Korean government exerts substantial influence over the telecommunications sector, including the ability to mandate prices and interfere with executive appointments. This regulatory environment can disrupt KT's strategic plans and negatively impact its financial performance.
High Risk
Cybersecurity Incidents
KT has faced significant cybersecurity breaches, including the concealment of malware infections and security failures. These incidents have resulted in financial losses for customers, investigations, potential fines, and reputational damage, with future earnings expected to be impacted due to compensation costs and the need for USIM card replacements.
Medium
Demographics and Market Saturation
With a mobile penetration rate exceeding 140% in South Korea and an aging population, KT faces challenges in its core mobile market. This saturation necessitates the development of new growth avenues to sustain revenue.
Medium
Technology and Capital Expenditure
KT's investments in AI and data centers require significant capital, which poses risks of capital misallocation and high expenditure. The ambitious push into these technologies, while potentially lucrative, could strain financial resources.
Lower
Governance and Management
Past governance failures and concerns regarding management's commitment to shareholder interests may lead to a discount in KT's stock valuation. Ongoing scrutiny of management practices could affect investor confidence.
Lower
Financial Risks
KT's financial activities expose it to market risk, credit risk, and liquidity risk. The company manages these risks through a dedicated Value Management Office, although inherent financial vulnerabilities remain.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why KT Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Financial Performance
KT Corporation reported a profit of ₩1,836,770 million in 2025, marking a substantial increase from the previous year. This earnings recovery, alongside significant increases in operating revenue, highlights the company's robust financial health.
Undervalued Valuation Metrics
With a Price-to-Earnings (P/E) ratio of approximately 8.34-8.80 and a Price-to-Book (P/B) ratio around 0.78-0.81, KT appears undervalued compared to market averages. These metrics suggest potential for price appreciation as the market recognizes its true value.
Expansion into Non-Telecom Sectors
KT is strategically diversifying its business by expanding into non-telecom sectors such as real estate, payment processing, and artificial intelligence. This diversification is expected to drive future growth and reduce reliance on traditional telecom revenues.
Investment in AI and Cloud Services
The company is making significant investments in its US AI expansion through a partnership with Palantir, which is anticipated to enhance long-term growth potential. Additionally, KT's cloud business is experiencing promising growth, complementing its stable core telecom services.
Sustainable Dividend Yield
KT offers a dividend yield ranging from 2.40% to 3.93%, which is considered sustainable due to a healthy payout ratio. This attractive yield provides a steady income stream for investors, enhancing the stock's appeal.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
KT Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$21.18
52W Range Position
52%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$17.54
+20.8% from the low
52-Week High
$24.58
-13.8% from the high
1 Month
-0.33%
3 Month
-0.42%
YTD
+11.2%
1 Year
+5.5%
3Y CAGR
+22.2%
5Y CAGR
+10.2%
10Y CAGR
+4.4%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
KT vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
0.0x
vs 9.3x median
-100% below peer median
Revenue Growth
+5.3%
vs +1.9% median
+184% above peer median
Net Margin
6.1%
vs 10.4% median
-41% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
KT KT KT Corporation | $10.2B | 0.0x | +5.3% | 6.1% | Buy | — |
SKM SKM SK Telecom Co.,Ltd | $14.2B | 0.0x | +2.1% | 5.7% | Hold | — |
BCE BCE BCE Inc. | $22.6B | 9.3x | +1.9% | 25.8% | Hold | +7.3% |
TEF TEF Telefónica, S.A. | $24.4B | 12.5x | -0.2% | -5.5% | Buy | — |
VIV VIV Telefônica Brasil S.A. | $25.5B | 2.9x | +6.7% | 10.4% | Hold | +3.6% |
T T AT&T Inc. | $178.4B | 11.1x | +1.4% | 16.9% | Hold | +15.1% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
KT Dividend and Capital Return
KT returns 5.5% total yield, led by a 3.77% dividend. Buybacks add another 1.7%.
Dividend SustainableFCF Adequate
Total Shareholder Yield
5.5%
Dividend + buyback return per year
Buyback Yield
1.7%
Dividend Yield
3.77%
Payout Ratio
33.4%
How KT Splits Its Return
Div 3.77%
Buyback 1.7%
Dividend 3.77%Buybacks 1.7%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1161.87
Growth Streak
Consecutive years of dividend increases
1Y
3Y Div CAGR
3.3%
5Y Div CAGR
5.8%
Ex-Dividend Date
—
Payment Cadence
Annual
3 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$253.4B
Estimated Shares Retired
12.0B
Approx. Share Reduction
2373.5%
Shares Outstanding
Current diluted share count from the screening snapshot
504M
At 2373.5%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.17 | — | — | — |
| 2025 | $0.80 | +48.1% | 100.0% | 100.0% |
| 2024 | $0.54 | -23.5% | 100.0% | 100.0% |
| 2023 | $0.71 | -2.5% | 100.0% | 100.0% |
| 2022 | $0.73 | -3.4% | 0.0% | 100.0% |
FAQ
6 questionsKT Investor Questions
Common questions answered from live analyst data and company financials.
01Is KT Corporation (KT) stock a buy or sell in 2026?
KT Corporation (KT) is rated Buy by Wall Street analysts as of 2026. Of 5 analysts covering the stock, 4 rate it Buy or Strong Buy, 1 rate it Hold, and 0 rate it Sell or Strong Sell. The bear case scenario is $9476 and the bull case is $30960.
02Is KT Corporation (KT) stock overvalued in 2026?
KT trades at 0.0x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
03What are the main risks for KT Corporation (KT) stock in 2026?
The primary risks for KT in 2026 are: (1) Regulatory and Political Risk — The South Korean government exerts substantial influence over the telecommunications sector, including the ability to mandate prices and interfere with executive appointments. (2) Cybersecurity Incidents — KT has faced significant cybersecurity breaches, including the concealment of malware infections and security failures. (3) Demographics and Market Saturation — With a mobile penetration rate exceeding 140% in South Korea and an aging population, KT faces challenges in its core mobile market. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
04What is KT Corporation's revenue and earnings forecast?
Analyst consensus estimates KT will report consensus revenue of $29.72T (+5.3% year-over-year) and EPS of $3229.18 (-60.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $31.32T in revenue.
05When does KT Corporation (KT) report its next earnings?
KT Corporation is expected to report its next earnings on approximately 2026-05-08. Consensus expects EPS of $0.51 and revenue of $4.6B. Over recent quarters, KT has beaten EPS estimates 64% of the time.
06How much free cash flow does KT Corporation generate?
KT Corporation (KT) generated $984.0B in free cash flow over the trailing twelve months — a free cash flow margin of 3.5%. KT returns capital to shareholders through dividends (3.8% yield) and share repurchases ($253.4B TTM).