Update shared on 21 Nov 2025
Fair value Decreased 9.10%Analysts have revised TPG Telecom’s fair value estimate downward by $0.50 per share to $5.00, citing a modest contraction in profit margin expectations and a higher discount rate that is impacting future projections.
What's in the News
- TPG Telecom has completed a follow-on equity offering worth AUD 300 million, issuing 83,102,493 ordinary shares at AUD 3.61 (Key Developments).
- The company filed additional follow-on equity offerings totaling AUD 688 million, with 190,581,717 shares made available at AUD 3.61, including a rights offering (Key Developments).
- TPG Telecom announced a special dividend of AUD 0.09 per share. The ex-date is set for November 14, 2025, with payment on November 24, 2025 (Key Developments).
- A special shareholders meeting is scheduled for November 11, 2025, to consider return of capital and other business matters (Key Developments).
Valuation Changes
- Fair Value Estimate: Lowered from A$5.50 to A$5.00 per share, a reduction of A$0.50.
- Discount Rate: Increased from 6.48% to 7.23%, reflecting a higher cost of capital.
- Revenue Growth: The projected decline has moderated slightly, improving from negative 1.56% to negative 1.51%.
- Net Profit Margin: Forecasted to decrease from 4.65% to 4.47%.
- Future P/E Ratio: The forecast has been reduced from 49.88 times to 48.09 times.
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