Updated NAV Analysis of SK Square + the Right Way Vs Wrong Way to Split/Spin-Off a Company in Korea
My updated NAV analysis of SK Square (402340 KS) suggests NAV per share of 1,283,115 per share which represents a 29% upside from current price.
SK Square currently has a market cap of 130.8 trillion won. SK Square’s stake in SK Hynix is worth 158% of its market cap.
Comparison of SK Square/SK Telecom horizontal spin-off and LG Chem/LG Energy Solution company split-off shows the clear benchmarks of the right vs wrong way to separate companies in Korea.
In this insight, I provide an updated NAV analysis of SK Square (402340 KS). I also provide further details about the right way versus the wrong way to split a company in Korea.
Updated NAV Analysis of SK Square
My updated NAV analysis of SK Square (402340 KS) suggests NAV per share of 1,283,115 per share which represents a 29% upside from current price. The largest portion of the company’s value is its 20.1% stake in SK Hynix (000660 KS) which is worth 207 trillion won at current market value.
SK Square currently has a market cap of 130.8 trillion won. SK Square’s stake in SK Hynix is worth 158% of its market cap. To value SK Square, I used a 20% holdco discount. Post holdco discount, the NAV of the company is 169.4 trillion won or target price of 1,283,115 won per share.
