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Corporate valuation techniques and case study in valuing Korean company

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Approval as of Oct30, 2007 Supervisor David J. Behling___David J Behling_________________
Abstract
The objective of this paper is to use the valuation techniques to value selected Korean company. The paper introduces the three basic Valuation Techniques and illustrates how to value the true value of companies by using free cash flow to the firm approach.
The three basic valuation techniques includes: fundamental analysis, technical analysis, and modern portfolio theory (MPT). The most popular methods in fundamental analysis are: Target stock price analysis, relative value analysis and discounted cash flow analysis. The discounted cash flow analysis includes three models: the dividend discount model (DDM), the free cash flow to equity model (FCFE) and the free cash flow to the firm model (FCFF). The author introduces the FCFF model in detail and uses
it in the case study, because the author believes that from a stock valuation standpoint, stockholders should be more concerned about the free cash flow to the firm rather than the profits, since on any corporate investment, a corporation creates additional value for stockholders if and only if it earns a rate of return, after all net cash flow adjustments, that exceeds the corporation’s weighted average cost of capital. This occurs only when the investment generates additional free cash flow to the firm.
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The second main objective is to provide a financial analysis of the selected company-- SK Telecom. In this part, the paper


Full Text
Title Corporate valuation techniques and case study in valuing Korean company
Similar Titles
Material Type Articles
Author(English)

Zhang, Lijuan

Publisher

[Seoul]:KDI School of Public Policy and Management

Date 2007
Pages 64
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < Entrepreneurship
Holding KDI School of Public Policy and Management

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Thesis(Master)