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South African (JSE) Telecom Sector Analysis

UpdatedJul 29, 2026
DataAggregated Company Financials
Companies11
  • 7D1.1%
  • 3M10.0%
  • 1Y31.3%
  • YTD21.8%

The Telecom industry is up 1.1% in the last week, with MTN Group up 1.8%. This means that the industry has gained 31% over the past year. As for the next few years, earnings are expected to grow by 19% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 29 Jul 2026R791.0bR481.6bR48.1b7.6x16.4x1.6x
Fri, 26 Jun 2026R769.6bR481.7bR48.1b7.2x16x1.6x
Sun, 24 May 2026R737.8bR481.9bR48.0b8x15.4x1.5x
Tue, 21 Apr 2026R707.7bR474.5bR46.2b8x15.3x1.5x
Thu, 19 Mar 2026R713.9bR474.5bR46.2b8.3x15.4x1.5x
Sat, 14 Feb 2026R707.0bR436.0bR33.2b8.2x21.3x1.6x
Mon, 12 Jan 2026R672.2bR436.0bR33.2b8.4x20.2x1.5x
Wed, 10 Dec 2025R669.1bR486.7bR34.4b8.1x19.4x1.4x
Fri, 07 Nov 2025R663.9bR478.0bR31.4b8.4x21.1x1.4x
Sun, 05 Oct 2025R627.6bR478.0bR31.4b9.8x20x1.3x
Tue, 02 Sep 2025R632.7bR477.9bR31.5b9.1x20.1x1.3x
Thu, 31 Jul 2025R634.8bR459.8bR12.5b13.5x50.6x1.4x
Sat, 28 Jun 2025R612.0bR459.8bR12.5b12.7x48.8x1.3x
Mon, 26 May 2025R519.8bR408.1bR10.2b10.5x50.8x1.3x
Wed, 23 Apr 2025R484.0bR407.2bR8.4b9.7x57.8x1.2x
Fri, 21 Mar 2025R470.7bR407.2bR8.4b9.6x56.2x1.2x
Sun, 16 Feb 2025R461.0bR418.2bR10.5b8.7x44x1.1x
Tue, 14 Jan 2025R379.2bR418.2bR10.5b8.1x36.2x0.9x
Thu, 12 Dec 2024R387.8bR418.2bR10.5b8.5x37.1x0.9x
Sat, 09 Nov 2024R379.3bR416.7bR11.9b8.3x31.8x0.9x
Mon, 07 Oct 2024R382.9bR416.7bR11.9b8.1x32.1x0.9x
Wed, 04 Sep 2024R393.0bR416.9bR11.9b8.2x33.1x0.9x
Fri, 02 Aug 2024R353.3bR441.3bR23.5b8x15x0.8x
Sun, 30 Jun 2024R363.6bR441.3bR23.5b8.4x15.5x0.8x
Tue, 28 May 2024R357.7bR442.6bR12.4b11.2x28.8x0.8x
Thu, 25 Apr 2024R344.2bR430.2bR13.5b9.5x25.4x0.8x
Sat, 23 Mar 2024R373.7bR431.7bR30.0b7.9x12.5x0.9x
Mon, 19 Feb 2024R366.9bR434.1bR29.6b10x12.4x0.8x
Wed, 17 Jan 2024R432.4bR434.1bR29.6b10.5x14.6x1x
Fri, 15 Dec 2023R430.8bR434.1bR29.6b10.2x14.5x1x
Sun, 12 Nov 2023R426.6bR473.6bR25.2b8.2x16.9x0.9x
Tue, 10 Oct 2023R443.5bR473.6bR25.2b9.6x17.6x0.9x
Thu, 07 Sep 2023R486.2bR473.4bR25.2b8x19.3x1x
Sat, 05 Aug 2023R514.5bR457.2bR24.1b6.7x21.3x1.1x
Price to Earnings Ratio

21.3x


Total Market Cap: R514.5bTotal Earnings: R24.1bTotal Revenue: R457.2bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 27x202420252026
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 16.4x which is lower than its 3-year average PE of 27.0x.
  • The 3-year average PS ratio of 1.2x 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 grown 26% per year over the last three years, while revenues have remained mostly flat.
  • This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.

Industry Trends

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

ZA Market0.15%
Telecom1.15%
Wireless Telecom1.38%
Media-0.26%
Telecom Services and Carriers-3.19%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 13.5x.
    • Analysts are expecting annual earnings growth of 11.2%, which is lower than the prior year's growth of 115.4% per year.
  • Investors are most pessimistic about the Media industry, which is trading below its 3-year average of 7.6x.
Forecasted Growth
  • Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 20% over the next 5 years.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 11% per year over the next few years.

Top Stock Gainers and Losers

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

CompanyLast Price7D1YValuation
MTN MTN GroupR230.540.8%
+R3.4b		58.8%PE20.9x
CCD Cell C HoldingsR27.005.1%
+R442.0m		n/aPE1.6x
BLU Blu Label Unlimited GroupR8.904.2%
+R326.8m		-46.5%PS0.5x
EMH eMedia HoldingsR1.872.7%
+R32.9m		-32.0%PE5x
HUG Huge GroupR0.911.1%
+R1.7m		-52.1%PE5.5x

Latest News

EMH
R1.87
eMedia Holdings
7D
2.7%
1Y
-32.0%
HUG
R0.91
Huge Group
7D
1.1%
1Y
-52.1%
TKG
R54.96
Telkom SA SOC
7D
-2.8%
1Y
-7.6%
MTN
R230.54
MTN Group
7D
0.8%
1Y
58.8%
Narrative Update • Jul 14

MTN: Higher P/E Assumptions Will Support Earnings Repricing Over Time

The analyst price target for MTN Group has been raised from ZAR280 to ZAR300, with analysts citing updated assumptions on revenue growth, profit margins and future P/E as the key drivers behind the revision. Analyst Commentary Bullish analysts view the higher ZAR300 price target for MTN Group as a reflection of updated assumptions on how the company might convert revenue into earnings and how its P/E could be supported over time.
VOD
R156.14
Vodacom Group
7D
-0.01%
1Y
11.7%
Narrative Update • Jul 14

VOD: EPS Guidance And Margin Outlook Will Support Balanced Medium Term View

Vodacom Group's analyst fair value estimate has been revised slightly higher from ZAR158.85 to ZAR162.15, with analysts attributing the change to updated assumptions around profit margins and a lower future P/E multiple. What's in the News for Vodacom Group Vodacom Group issued earnings guidance for the year ending 31 March 2026, providing an EPS range of 1,031 cents to 1,074 cents, based on a prior reported EPS of 859 cents.
BLU
R8.90
Blu Label Unlimited Group
7D
4.2%
1Y
-46.5%
CAT
R12.00
Caxton and CTP Publishers and Printers
7D
-1.6%
1Y
4.3%