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South African (JSE) Telecom Sector Analysis

UpdatedJan 27, 2026
DataAggregated Company Financials
Companies11
  • 7D4.2%
  • 3M7.1%
  • 1Y50.8%
  • YTD6.8%

Over the last 7 days, the Telecom industry has risen 4.2%, driven by gains from Vodacom Group of 6.1%. This takes the industry's 12 month performance to a gain of 51%. Looking forward, earnings are forecast to grow by 29% annually.

Sector Valuation and Performance

Has the South African Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 27 Jan 2026R682.8bR436.0bR33.2b8.3x20.5x1.6x
Thu, 25 Dec 2025R640.7bR436.0bR33.2b8x19.3x1.5x
Sat, 22 Nov 2025R670.4bR486.8bR34.4b8x19.5x1.4x
Mon, 20 Oct 2025R660.5bR478.0bR31.4b9.7x21x1.4x
Wed, 17 Sep 2025R628.4bR478.0bR31.4b9.3x20x1.3x
Fri, 15 Aug 2025R691.1bR459.8bR12.5b13.3x55.1x1.5x
Sun, 13 Jul 2025R621.9bR459.8bR12.5b13.1x49.6x1.4x
Tue, 10 Jun 2025R536.6bR408.1bR10.1b13x53.2x1.3x
Thu, 08 May 2025R510.1bR407.2bR8.4b10.2x60.9x1.3x
Sat, 05 Apr 2025R444.4bR407.2bR8.4b9.1x53x1.1x
Mon, 03 Mar 2025R471.1bR417.9bR10.5b9.4x45.1x1.1x
Wed, 29 Jan 2025R442.6bR418.2bR10.5b8.8x42.3x1.1x
Fri, 27 Dec 2024R378.3bR418.2bR10.5b8.4x36.1x0.9x
Sun, 24 Nov 2024R370.6bR418.1bR10.5b7.8x35.5x0.9x
Tue, 22 Oct 2024R399.6bR416.7bR11.9b8.5x33.5x1x
Thu, 19 Sep 2024R410.1bR416.7bR11.9b8.2x34.4x1x
Sat, 17 Aug 2024R385.0bR441.3bR23.5b8.2x16.4x0.9x
Mon, 15 Jul 2024R359.5bR441.3bR23.5b8.2x15.3x0.8x
Wed, 12 Jun 2024R341.3bR442.7bR12.4b10.8x27.5x0.8x
Fri, 10 May 2024R370.8bR430.2bR13.5b10.3x27.4x0.9x
Sun, 07 Apr 2024R387.3bR430.2bR13.5b10.8x28.6x0.9x
Tue, 05 Mar 2024R365.3bR431.9bR30.1b7.6x12.1x0.8x
Thu, 01 Feb 2024R376.3bR434.1bR29.6b10.4x12.7x0.9x
Sat, 30 Dec 2023R437.9bR434.1bR29.6b10.2x14.8x1x
Mon, 27 Nov 2023R414.2bR434.1bR29.7b9x14x1x
Wed, 25 Oct 2023R437.1bR473.6bR25.2b9.2x17.3x0.9x
Fri, 22 Sep 2023R470.6bR473.6bR25.2b8x18.7x1x
Sun, 20 Aug 2023R502.3bR473.0bR25.3b5.8x19.8x1.1x
Tue, 18 Jul 2023R530.2bR457.6bR24.1b6.4x22x1.2x
Thu, 15 Jun 2023R556.4bR458.1bR24.1b6.3x23.1x1.2x
Sat, 13 May 2023R498.9bR442.1bR38.8b7.2x12.8x1.1x
Mon, 10 Apr 2023R554.8bR442.1bR38.8b7.9x14.3x1.3x
Wed, 08 Mar 2023R598.4bR427.0bR38.5b8.1x15.6x1.4x
Fri, 03 Feb 2023R581.7bR426.3bR39.1b7.2x14.9x1.4x
Price to Earnings Ratio

14.9x


Total Market Cap: R581.7bTotal Earnings: R39.1bTotal Revenue: R426.3bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 26.8x202420252026
Current Industry PE
  • Investors are pessimistic on the South African 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 20.5x which is lower than its 3-year average PE of 26.8x.
  • The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.6x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 5.2% per year over the last three years.
  • Meanwhile revenues have remained mostly flat.
  • This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.

Industry Trends

Which industries have driven the changes within the South African Telecom sector?

ZA Market3.77%
Telecom4.16%
Wireless Telecom4.50%
Media1.38%
Telecom Services and Carriers-0.45%
Industry PE
  • Investors are most optimistic about the Wireless Telecom industry even though it's trading below its 3-year average PE ratio of 30.6x.
    • Analysts expect its future annual earnings growth (30.2%) to be largely in line with prior year's earnings growth.
  • Investors are most pessimistic about the Telecom Services and Carriers industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 5.4x.
Forecasted Growth
  • Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 30% over the next 5 years.
  • This is roughly in line with its past earnings growth rate.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
VOD Vodacom GroupR151.605.5%
+R15.3b		38.6%PE15.5x
MTN MTN GroupR183.003.6%
+R11.7b		61.9%PE44.4x
TKG Telkom SA SOCR61.561.6%
+R494.0m		88.8%PE8.7x
CAT Caxton and CTP Publishers and PrintersR13.481.8%
+R84.8m		12.3%PE7.9x
EMH eMedia HoldingsR2.313.1%
+R44.8m		-34.7%PE6.4x

Latest News

TKG
R61.56
Telkom SA SOC
7D
1.6%
1Y
88.8%

TKG: Higher Required Return And Lower Margins Will Pressure Future Upside

Analysts have revised their fair value estimate for Telkom SA SOC from R45 to R51, citing updated assumptions for discount rates, revenue growth, profit margins and future P/E levels. Valuation Changes The Fair Value Estimate was increased from ZAR45 to ZAR51, reflecting a higher assessed equity value per share.
MTN
R183.00
MTN Group
7D
3.6%
1Y
61.9%

MTN: Leadership Reset And Brand Strength Will Shape Balanced Execution Outlook

Narrative Update Analysts have lifted their fair value estimate for MTN Group from R176.89 to R186.22, citing slightly higher projected revenue growth, a modestly lower profit margin profile, and an updated future P/E assumption of 11.49x that reflects recent sector research and valuation resets seen in wider leisure and consumer names. Analyst Commentary Recent Street research around MTN Group has focused less on near term trading updates and more on leadership changes, brand strength, and execution risk.
VOD
R151.60
Vodacom Group
7D
5.5%
1Y
38.6%

VOD: Safaricom Stake Talks And Dividend Will Support Balanced Medium-Term Outlook

Analysts have raised their fair value estimate for Vodacom Group from R146.44 to R148.33 per share. This reflects updated assumptions that combine higher revenue growth expectations with slightly lower profit margin forecasts and an unchanged forward P/E multiple.
HUG
R1.35
Huge Group
7D
7.1%
1Y
-34.1%
BLU
R9.61
Blu Label Unlimited Group
7D
-2.4%
1Y
51.3%
AME
R44.99
African Media Entertainment
7D
-0.02%
1Y
12.5%
EMH
R2.31
eMedia Holdings
7D
3.1%
1Y
-34.7%
CAT
R13.48
Caxton and CTP Publishers and Printers
7D
1.8%
1Y
12.3%