Are Investors Undervaluing TPG Telecom Limited (ASX:TPG) By 48%?
May 05
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Australian (ASX) Telecom Services and Carriers Industry Analysis
UpdatedMay 09, 2025
DataAggregated Company Financials
Companies9
- 7D1.3%
- 3M15.0%
- 1Y25.6%
- YTD12.9%
In the last week, the Telecom Services and Carriers industry is up 1.4%, with Telstra Group up 1.1%. During this same period, the Comms Group underperformed, falling 7.4%. In the last 12 months, the industry was up 25%. Earnings are forecast to grow by 16% annually.
Industry Valuation and Performance
Has the Australian Telecom Services and Carriers Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 09 May 2025 | AU$67.2b | AU$30.6b | AU$1.6b | 41.9x | 42.3x | 2.2x |
| Sun, 06 Apr 2025 | AU$63.3b | AU$30.6b | AU$1.6b | 38.3x | 39.8x | 2.1x |
| Tue, 04 Mar 2025 | AU$62.5b | AU$30.6b | AU$1.6b | 35.1x | 39.6x | 2x |
| Thu, 30 Jan 2025 | AU$59.7b | AU$30.4b | AU$1.6b | 41.8x | 36.7x | 2x |
| Sat, 28 Dec 2024 | AU$60.0b | AU$30.4b | AU$1.6b | 40x | 36.9x | 2x |
| Mon, 25 Nov 2024 | AU$57.5b | AU$30.4b | AU$1.6b | 39.5x | 35.3x | 1.9x |
| Wed, 23 Oct 2024 | AU$57.7b | AU$30.4b | AU$1.6b | 41.5x | 35.4x | 1.9x |
| Fri, 20 Sep 2024 | AU$59.6b | AU$30.4b | AU$1.6b | 41.8x | 37.4x | 2x |
| Sun, 18 Aug 2024 | AU$58.0b | AU$30.2b | AU$1.6b | 40.1x | 36.7x | 1.9x |
| Tue, 16 Jul 2024 | AU$57.2b | AU$30.1b | AU$2.0b | 39.5x | 28.8x | 1.9x |
| Thu, 13 Jun 2024 | AU$53.0b | AU$30.1b | AU$2.0b | 44.4x | 26.6x | 1.8x |
| Sat, 11 May 2024 | AU$54.1b | AU$30.1b | AU$2.0b | 48.6x | 27.2x | 1.8x |
| Mon, 08 Apr 2024 | AU$56.2b | AU$30.1b | AU$2.0b | 44.7x | 28.3x | 1.9x |
| Wed, 06 Mar 2024 | AU$56.2b | AU$30.0b | AU$2.0b | 59.5x | 28.3x | 1.9x |
| Fri, 02 Feb 2024 | AU$62.6b | AU$30.0b | AU$2.3b | 24.5x | 27.5x | 2.1x |
| Sun, 31 Dec 2023 | AU$61.8b | AU$30.0b | AU$2.3b | 24.4x | 27.2x | 2.1x |
| Tue, 28 Nov 2023 | AU$58.2b | AU$30.0b | AU$2.3b | 22.5x | 25.6x | 1.9x |
| Thu, 26 Oct 2023 | AU$60.2b | AU$30.0b | AU$2.3b | 24.8x | 26.5x | 2x |
| Sat, 23 Sep 2023 | AU$60.5b | AU$30.0b | AU$2.3b | 26x | 26.6x | 2x |
| Mon, 21 Aug 2023 | AU$61.7b | AU$29.7b | AU$2.3b | 57x | 26.4x | 2.1x |
| Wed, 19 Jul 2023 | AU$65.0b | AU$29.5b | AU$2.3b | 56.4x | 28.5x | 2.2x |
| Fri, 16 Jun 2023 | AU$67.0b | AU$29.5b | AU$2.3b | 59.1x | 29.4x | 2.3x |
| Sun, 14 May 2023 | AU$66.9b | AU$29.5b | AU$2.3b | 59.4x | 29.4x | 2.3x |
| Tue, 11 Apr 2023 | AU$65.4b | AU$29.5b | AU$2.3b | 61.5x | 28.7x | 2.2x |
| Thu, 09 Mar 2023 | AU$63.5b | AU$29.4b | AU$2.3b | 63.7x | 28x | 2.2x |
| Sat, 04 Feb 2023 | AU$63.2b | AU$28.3b | AU$1.8b | 62.8x | 35.2x | 2.2x |
| Mon, 02 Jan 2023 | AU$61.8b | AU$28.3b | AU$1.8b | 62.8x | 34.5x | 2.2x |
| Wed, 30 Nov 2022 | AU$62.0b | AU$28.3b | AU$1.8b | 62.8x | 34.6x | 2.2x |
| Fri, 28 Oct 2022 | AU$59.8b | AU$28.3b | AU$1.8b | 63.6x | 33.3x | 2.1x |
| Sun, 25 Sep 2022 | AU$59.2b | AU$28.3b | AU$1.8b | 69.4x | 33x | 2.1x |
| Tue, 23 Aug 2022 | AU$65.6b | AU$28.0b | AU$1.9b | 62.8x | 35x | 2.3x |
| Thu, 21 Jul 2022 | AU$64.3b | AU$27.8b | AU$1.6b | 63.3x | 41.3x | 2.3x |
| Sat, 18 Jun 2022 | AU$61.0b | AU$27.8b | AU$1.6b | 61.7x | 39.2x | 2.2x |
| Mon, 16 May 2022 | AU$63.9b | AU$27.8b | AU$1.6b | 69.4x | 41x | 2.3x |
Price to Earnings Ratio
41x
Current Industry PE
- Investors are optimistic on the Australian Telecom industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 42.1x which is higher than its 3-year average PE of 32.3x.
- The industry is trading close to its 3-year average PS ratio of 2.1x.
Past Earnings Growth
- The earnings for companies in the Telecom industry have remained mostly flat over the last three years.
- Meanwhile revenues for these companies have grown 3.2% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Industry Trends
Which industries have driven the changes within the Australian Telecom industry?
| AU Market | 0.68% | |
| Telecom | 1.09% | |
| Telecom Services and Carriers | 1.27% | |
| Alternative Carriers | 2.54% | |
| Integrated Telecom Services | 1.22% | |
Industry PE
- Investors are most optimistic about the Alternative Carriers industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 39.8%, which is higher than its past year's earnings growth of 25.0% per year.
- Investors are most pessimistic about the Integrated Telecom Services industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 30.3x.
Forecasted Growth
- Analysts are most optimistic on the Alternative Carriers industry, expecting annual earnings growth of 40% over the next 5 years.
- This is better than its past earnings growth rate of 25% per year.
- In contrast, the Integrated Telecom Services industry is expected to see its earnings grow by 15% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TLS Telstra Group | AU$4.61 | 0.7% +AU$342.2m | 26.0% | PE31.2x | |
| TPG TPG Telecom | AU$5.20 | 1.4% +AU$129.8m | 14.8% | PS1.7x | |
| TUA Tuas | AU$5.91 | 1.7% +AU$46.8m | 52.3% | PE1075.1x | |
| SWP Swoop Holdings | AU$0.10 | 5.0% +AU$1.1m | -47.5% | PS0.3x |
