Some Shareholders Feeling Restless Over Telenor ASA's (OB:TEL) P/E Ratio
Jan 20
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Norwegian (OSEAX) Telecom Sector Analysis
UpdatedJan 21, 2025
DataAggregated Company Financials
Companies6
- 7D2.7%
- 3M1.5%
- 1Y8.1%
- YTD0.6%
Over the last 7 days, the Telecom industry has risen 1.9%, driven by gains from Telenor of 4.8%. This means that the industry has gained 7.2% over the past year. In the next few years, earnings are forecast to decline by 25% annually.
Sector Valuation and Performance
Has the Norwegian Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 21 Jan 2025 | NOK 262.1b | NOK 100.0b | NOK 30.6b | 5.3x | 8.6x | 2.6x |
| Thu, 19 Dec 2024 | NOK 260.7b | NOK 100.0b | NOK 30.6b | 5.7x | 8.5x | 2.6x |
| Sat, 16 Nov 2024 | NOK 267.7b | NOK 100.0b | NOK 30.7b | 6.8x | 8.7x | 2.7x |
| Mon, 14 Oct 2024 | NOK 260.2b | NOK 99.8b | NOK 26.4b | 7.1x | 9.9x | 2.6x |
| Wed, 11 Sep 2024 | NOK 266.0b | NOK 99.8b | NOK 26.4b | 7x | 10.1x | 2.7x |
| Fri, 09 Aug 2024 | NOK 244.7b | NOK 99.9b | NOK 25.8b | 6.1x | 9.5x | 2.4x |
| Sun, 07 Jul 2024 | NOK 241.3b | NOK 100.1b | NOK 24.0b | 6.7x | 10.1x | 2.4x |
| Tue, 04 Jun 2024 | NOK 247.6b | NOK 100.1b | NOK 24.0b | 7.1x | 10.3x | 2.5x |
| Thu, 02 May 2024 | NOK 390.0b | NOK 121.5b | NOK 10.0b | 4.3x | 39x | 3.2x |
| Sat, 30 Mar 2024 | NOK 385.6b | NOK 121.3b | NOK 10.4b | 4.6x | 37.2x | 3.2x |
| Mon, 26 Feb 2024 | NOK 371.1b | NOK 120.2b | -NOK 7,379,076,207.74 | 20.6x | -50.3x | 3.1x |
| Wed, 24 Jan 2024 | NOK 397.6b | NOK 145.5b | NOK 2.9b | 37.4x | 137.3x | 2.7x |
| Fri, 22 Dec 2023 | NOK 384.2b | NOK 145.3b | NOK 3.0b | 39.4x | 126x | 2.6x |
| Sun, 19 Nov 2023 | NOK 363.7b | NOK 145.7b | NOK 1.2b | 15.2x | 300.7x | 2.5x |
| Tue, 17 Oct 2023 | NOK 371.6b | NOK 144.6b | -NOK 17,894,846,128.00 | 26.2x | -20.8x | 2.6x |
| Thu, 14 Sep 2023 | NOK 314.7b | NOK 144.5b | -NOK 17,800,596,833.00 | 24.6x | -17.7x | 2.2x |
| Sat, 12 Aug 2023 | NOK 314.0b | NOK 143.7b | -NOK 18,224,231,565.00 | 93.1x | -17.2x | 2.2x |
| Mon, 10 Jul 2023 | NOK 293.0b | NOK 142.9b | -NOK 25,128,484,649.00 | 160.5x | -11.7x | 2.1x |
| Wed, 07 Jun 2023 | NOK 310.7b | NOK 143.3b | -NOK 25,495,886,738.00 | 168.6x | -12.2x | 2.2x |
| Fri, 05 May 2023 | NOK 332.5b | NOK 141.8b | -NOK 17,232,195,823.00 | 48.2x | -19.3x | 2.3x |
| Sun, 02 Apr 2023 | NOK 316.6b | NOK 140.8b | -NOK 32,047,199,088.00 | 49.9x | -9.9x | 2.2x |
| Tue, 28 Feb 2023 | NOK 315.7b | NOK 139.8b | -NOK 12,029,008,518.00 | 107.1x | -26.2x | 2.3x |
| Thu, 26 Jan 2023 | NOK 312.1b | NOK 152.0b | -NOK 34,325,907,852.00 | 17x | -9.1x | 2.1x |
| Sat, 24 Dec 2022 | NOK 263.1b | NOK 151.5b | -NOK 34,340,979,089.00 | 20.1x | -7.7x | 1.7x |
| Mon, 21 Nov 2022 | NOK 292.9b | NOK 151.2b | -NOK 33,883,795,583.00 | 18.4x | -8.6x | 1.9x |
| Wed, 19 Oct 2022 | NOK 280.3b | NOK 149.8b | -NOK 29,472,582,659.00 | 17.5x | -9.5x | 1.9x |
| Fri, 16 Sep 2022 | NOK 296.6b | NOK 149.3b | -NOK 29,487,658,597.00 | 19x | -10.1x | 2x |
| Sun, 14 Aug 2022 | NOK 322.8b | NOK 144.0b | -NOK 28,838,931,042.00 | 109.8x | -11.2x | 2.2x |
| Tue, 12 Jul 2022 | NOK 328.7b | NOK 143.5b | -NOK 19,683,704,269.00 | 95.4x | -16.7x | 2.3x |
| Thu, 09 Jun 2022 | NOK 325.5b | NOK 143.3b | -NOK 20,158,299,353.00 | 65.9x | -16.1x | 2.3x |
| Sat, 07 May 2022 | NOK 324.5b | NOK 145.5b | -NOK 21,324,187,402.00 | 43x | -15.2x | 2.2x |
| Mon, 04 Apr 2022 | NOK 354.3b | NOK 140.6b | -NOK 11,428,856,366.00 | 41.3x | -31x | 2.5x |
| Wed, 02 Mar 2022 | NOK 372.3b | NOK 138.8b | -NOK 11,674,348,283.00 | 41.6x | -31.9x | 2.7x |
| Fri, 28 Jan 2022 | NOK 399.2b | NOK 148.8b | NOK 15.5b | 54.3x | 25.8x | 2.7x |
Price to Earnings Ratio
25.8x
Current Industry PE
- Investors are pessimistic on the Norwegian Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 8.5x which is lower than its 3-year average PE of 12.6x.
- The industry is trading close to its 3-year average PS ratio of 2.4x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 26% per year over the last three years.
- Meanwhile revenues for these companies have declined 12% per year.
- This means that less sales are being generated overall, but since cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the Norwegian Telecom sector?
| NO Market | 0.11% | |
| Telecom | 2.71% | |
| Telecom Services and Carriers | 4.85% | |
| Interactive Media and Services | 0% | 0 |
| Wireless Telecom | 0% | 0 |
| Media | -1.94% | |
| Entertainment | -6.35% | |
Industry PE
- Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 15.8x.
- Analysts are expecting annual earnings growth of 0.7%, which is lower than the prior year's growth of 36.4% per year.
Forecasted Growth
- Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 0.7% over the next 5 years.
- In contrast, the Media industry is expected to see its earnings decline by 87% 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 | |
|---|---|---|---|---|---|
| TEL Telenor | NOK 134.00 | 4.5% +NOK 7.9b | 9.6% | PE18.9x |