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TKG: Future Earnings Multiple Will Offset Softer Margins And Growth Expectations

Infrastructure Monetization And CapEx Optimization Will Improve Operational Efficiency

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TKG
AnalystConsensusTarget
Not Invested
Published 20 Feb 2025

Update shared on 09 Dec 2025

Fair value Decreased 0.75%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
50.0%
7D
4.3%

Analysts have trimmed their price target on Telkom SA SOC slightly to R53.00 from R53.40, citing a higher perceived discount rate, more muted revenue growth expectations, and softer profit margin forecasts, partially offset by a higher future P/E multiple assumption.

Valuation Changes

  • The consensus analyst price target decreased slightly from ZAR 53.40 to ZAR 53.00, reflecting a modest downward revision in fair value.
  • The discount rate increased slightly from 17.10 percent to approximately 17.53 percent, implying a higher required return and risk perception.
  • Revenue growth expectations edged down from about 3.31 percent to roughly 3.03 percent, indicating a more cautious outlook on top line expansion.
  • The net profit margin forecast declined meaningfully from around 6.73 percent to about 5.38 percent, pointing to anticipated margin compression.
  • The future P/E multiple assumption rose significantly from roughly 12.2x to about 15.4x, suggesting a higher expected valuation relative to earnings despite softer fundamentals.

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Disclaimer

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