POSCO

POSCO is the largest steel production company in Korea, established in 1968 by the Korean governmental initiatives. The mainly engaged businesses are iron making, steel making, and production and sales of rolled steel products. The Korean government, governmental entities or banks were major shareholders in the early stage. The stake has kept decreasing and remained below a digit after 2000 when the privatization completed. The stock price of POSCO has been declining, since it reached the highest over the late Noughties.

This valuation is worth as reference only because of incomplete provided information, incomplete interpretation of the provided information, unsophisticated assumptions to forecast future performance, and so on. When some figures in the financial statements are not accurately given, the figures are used to be paralleled with related other figures. When there is a difference among figures and the difference makes an ignorable difference in the outcome, it may be ignored. Steady state is assumed. A detailed prediction of mid-term performance was not performed. For forecast, the average of the last three years was used for it seemed to be not deviant from the trend much and reflecting the variation over the specific time period well. The mid-term forecast may be enhanced, provided any detailed information about the mid-term performance is given.

Users can check about how the values change by substituting the key value drivers including growth rate of Net Operating Profit Less Adjusted Taxes (NOPLAT), Return On Invested Capital (ROIC), Weighted Average Cost of Capital (WACC), etc. The formula to calculate each figure in a cell of the attached EXCEL file sheets is specified in the memo inserted to the cell.