An Intrinsic Calculation For Singapore Telecommunications Limited (SGX:Z74) Suggests It's 49% Undervalued
May 08
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Singaporean (SGX) Market Analysis & Valuation
UpdatedMay 09, 2025
DataAggregated Company Financials
Companies519
- 7D0.3%
- 3M0.5%
- 1Y14.9%
- YTD1.6%
In the last week, the market has been flat, with a notable exception in the Healthcare sector dropping 3.9%. More promisingly, the market is up 15% over the past year. As for the next few years, earnings are expected to grow by 9.7% per annum.
Trending IndustriesOil and Gas
Market Valuation and Performance
Has the Singaporean Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 09 May 2025 | S$727.4b | S$549.9b | S$47.6b | 11.9x | 15.3x | 1.3x |
| Sun, 06 Apr 2025 | S$723.3b | S$557.1b | S$47.6b | 11.6x | 15.2x | 1.3x |
| Tue, 04 Mar 2025 | S$732.8b | S$556.9b | S$48.0b | 11.8x | 15.3x | 1.3x |
| Thu, 30 Jan 2025 | S$715.3b | S$545.2b | S$43.5b | 12x | 16.4x | 1.3x |
| Sat, 28 Dec 2024 | S$712.0b | S$547.2b | S$43.6b | 11.6x | 16.3x | 1.3x |
| Mon, 25 Nov 2024 | S$707.8b | S$543.0b | S$43.5b | 11.5x | 16.3x | 1.3x |
| Wed, 23 Oct 2024 | S$698.2b | S$535.7b | S$44.0b | 11.7x | 15.9x | 1.3x |
| Fri, 20 Sep 2024 | S$716.1b | S$540.2b | S$44.9b | 11.4x | 16x | 1.3x |
| Sun, 18 Aug 2024 | S$664.4b | S$548.3b | S$45.0b | 10.9x | 14.8x | 1.2x |
| Tue, 16 Jul 2024 | S$689.2b | S$546.5b | S$44.6b | 11.8x | 15.5x | 1.3x |
| Thu, 13 Jun 2024 | S$658.1b | S$548.0b | S$44.4b | 11.6x | 14.8x | 1.2x |
| Sat, 11 May 2024 | S$658.2b | S$547.3b | S$46.9b | 11.6x | 14x | 1.2x |
| Mon, 08 Apr 2024 | S$646.5b | S$545.7b | S$47.0b | 11.8x | 13.7x | 1.2x |
| Wed, 06 Mar 2024 | S$625.4b | S$543.3b | S$49.1b | 11.4x | 12.7x | 1.2x |
| Fri, 02 Feb 2024 | S$641.6b | S$572.0b | S$51.5b | 12.3x | 12.5x | 1.1x |
| Sun, 31 Dec 2023 | S$666.8b | S$569.1b | S$52.1b | 12.7x | 12.8x | 1.2x |
| Tue, 28 Nov 2023 | S$642.8b | S$573.0b | S$52.4b | 11.8x | 12.3x | 1.1x |
| Thu, 26 Oct 2023 | S$640.1b | S$574.9b | S$52.5b | 12.3x | 12.2x | 1.1x |
| Sat, 23 Sep 2023 | S$670.8b | S$574.4b | S$52.5b | 12.9x | 12.8x | 1.2x |
| Mon, 21 Aug 2023 | S$670.0b | S$573.1b | S$53.2b | 12.6x | 12.6x | 1.2x |
| Wed, 19 Jul 2023 | S$693.3b | S$574.5b | S$56.6b | 11.9x | 12.2x | 1.2x |
| Fri, 16 Jun 2023 | S$694.1b | S$578.1b | S$56.8b | 11.5x | 12.2x | 1.2x |
| Sun, 14 May 2023 | S$691.4b | S$573.7b | S$55.3b | 11.5x | 12.5x | 1.2x |
| Tue, 11 Apr 2023 | S$709.4b | S$566.8b | S$54.4b | 11.7x | 13.1x | 1.3x |
| Thu, 09 Mar 2023 | S$694.5b | S$572.8b | S$54.3b | 11.2x | 12.8x | 1.2x |
| Sat, 04 Feb 2023 | S$726.7b | S$558.5b | S$57.8b | 10.7x | 12.6x | 1.3x |
| Mon, 02 Jan 2023 | S$697.0b | S$560.2b | S$57.7b | 10.2x | 12.1x | 1.2x |
| Wed, 30 Nov 2022 | S$698.0b | S$565.3b | S$57.9b | 10.3x | 12.1x | 1.2x |
| Fri, 28 Oct 2022 | S$649.2b | S$558.9b | S$54.5b | 9.9x | 11.9x | 1.2x |
| Sun, 25 Sep 2022 | S$700.3b | S$563.2b | S$54.8b | 10.7x | 12.8x | 1.2x |
| Tue, 23 Aug 2022 | S$712.1b | S$558.6b | S$54.5b | 10.9x | 13.1x | 1.3x |
| Thu, 21 Jul 2022 | S$697.2b | S$531.9b | S$47.5b | 11.3x | 14.7x | 1.3x |
| Sat, 18 Jun 2022 | S$674.7b | S$531.6b | S$47.8b | 11.5x | 14.1x | 1.3x |
| Mon, 16 May 2022 | S$695.8b | S$528.2b | S$46.5b | 11.6x | 15x | 1.3x |
Price to Earnings Ratio
15x
Current Market PE
- Investors are optimistic on the Singaporean market, and appear confident in strong long term growth rates.
- The market is trading at a PE ratio of 15.3x which is higher than its 3-year average PE of 13.7x.
Past Earnings Growth
- Both revenue and earnings for Singaporean listed companies have remained mostly flat over the last three years.
- This means sales and the cost of doing business have remained relatively consistent over this period and subsequently, so have profits.
Sector Trends
Which sectors have driven the changes within the Singaporean Market?
| SG Market | 0.26% | |
| Telecom | 1.99% | |
| Industrials | 1.38% | |
| Energy | 0.90% | |
| Consumer Staples | 0.52% | |
| Financials | 0.50% | |
| Consumer Discretionary | -0.012% | |
| Materials | -0.69% | |
| Utilities | -0.73% | |
| Real Estate | -1.44% | |
| Tech | -2.03% | |
| Healthcare | -3.92% | |
Sector PE
- Investors favour the Telecom sector the most for future growth, which is trading above its 3-year average PE ratio of 30.5x.
- The market's confidence is likely because analysts are expecting annual earnings growth of 23.2% which is higher than its past year's earnings decline of 18.1% per year.
- The Energy sector is the least preferred by investors for future growth. Although, investor sentiment seems to have improved given that it's trading above its 3-year average of 7.2x.
Forecasted Growth
- Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 28% over the next 5 years.
- This is better than its past earnings growth rate of 7.9% per year.
- In contrast, the Materials sector is expected to see its earnings decline by 12% 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 | Sector | |
|---|---|---|---|---|---|---|
| D05 DBS Group Holdings | S$43.71 | 2.4% +S$2.9b | 23.5% | PB1.8x | Financials | |
| Z74 Singapore Telecommunications | S$3.90 | 2.6% +S$1.7b | 62.5% | PE86.6x | Telecom | |
| S63 Singapore Technologies Engineering | S$7.63 | 3.8% +S$874.1m | 91.7% | PE33.9x | Industrials | |
| H78 Hongkong Land Holdings | US$5.02 | 2.2% +US$239.9m | 49.9% | PS5.5x | Real Estate | |
| 5E2 Seatrium | S$2.03 | 4.6% +S$304.0m | 15.3% | PE43.7x | Industrials |
