South African (JSE) Telecom Sector Analysis

Sector Valuation and Performance

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

Date	Market Cap	Revenue	Earnings	PE	Absolute PE	PS
Wed, 24 Apr 2024	R344.2b	R430.2b	R13.5b	9.5x	25.4x	0.8x
Fri, 22 Mar 2024	R353.0b	R431.7b	R30.0b	7.4x	11.8x	0.8x
Sun, 18 Feb 2024	R366.9b	R434.1b	R29.6b	10x	12.4x	0.8x
Tue, 16 Jan 2024	R434.0b	R434.1b	R29.6b	10x	14.7x	1x
Thu, 14 Dec 2023	R406.6b	R434.1b	R29.6b	9.8x	13.7x	0.9x
Sat, 11 Nov 2023	R426.6b	R473.6b	R25.2b	8.2x	16.9x	0.9x
Mon, 09 Oct 2023	R454.5b	R473.6b	R25.2b	9.8x	18x	1x
Wed, 06 Sep 2023	R489.4b	R473.4b	R25.2b	7.7x	19.4x	1x
Fri, 04 Aug 2023	R515.2b	R457.2b	R24.1b	6.7x	21.4x	1.1x
Sun, 02 Jul 2023	R540.9b	R457.6b	R24.1b	7x	22.4x	1.2x
Tue, 30 May 2023	R484.4b	R454.6b	R39.2b	6.9x	12.3x	1.1x
Thu, 27 Apr 2023	R542.3b	R442.1b	R38.8b	7.5x	14x	1.2x
Sat, 25 Mar 2023	R544.3b	R442.1b	R38.8b	7.5x	14x	1.2x
Mon, 20 Feb 2023	R591.2b	R426.3b	R39.1b	6.6x	15.1x	1.4x
Wed, 18 Jan 2023	R567.6b	R426.3b	R39.1b	6.7x	14.5x	1.3x
Fri, 16 Dec 2022	R536.1b	R426.3b	R39.1b	6.7x	13.7x	1.3x
Sun, 13 Nov 2022	R542.1b	R420.3b	R42.5b	8.9x	12.8x	1.3x
Tue, 11 Oct 2022	R506.8b	R420.3b	R42.4b	9x	11.9x	1.2x
Thu, 08 Sep 2022	R539.4b	R420.3b	R42.4b	9.1x	12.7x	1.3x
Sat, 06 Aug 2022	R577.8b	R409.9b	R37.0b	8.3x	15.6x	1.4x
Mon, 04 Jul 2022	R551.5b	R409.9b	R37.0b	8.8x	14.9x	1.3x
Wed, 01 Jun 2022	R645.2b	R409.6b	R36.7b	9.5x	17.6x	1.6x
Fri, 29 Apr 2022	R667.5b	R406.8b	R35.6b	10x	18.8x	1.6x
Sun, 27 Mar 2022	R703.5b	R388.9b	R34.7b	12.7x	20.3x	1.8x
Tue, 22 Feb 2022	R664.7b	R388.8b	R28.7b	15.7x	23.1x	1.7x
Thu, 20 Jan 2022	R604.2b	R388.8b	R28.7b	14.2x	21x	1.6x
Sat, 18 Dec 2021	R618.6b	R389.0b	R28.4b	14x	21.7x	1.6x
Mon, 15 Nov 2021	R608.1b	R385.9b	R29.4b	17.2x	20.7x	1.6x
Wed, 13 Oct 2021	R571.6b	R385.9b	R29.4b	14.9x	19.4x	1.5x
Fri, 10 Sep 2021	R520.6b	R385.6b	R29.1b	17.1x	17.9x	1.4x
Sun, 08 Aug 2021	R508.6b	R385.6b	R29.1b	20.9x	17.5x	1.3x
Sat, 01 May 2021	R456.5b	R384.3b	R33.8b	14.8x	13.5x	1.2x

Current Industry PE

Investors are optimistic on the South African Communication Services industry, and appear confident in long term growth rates.

The industry is trading at a PE ratio of 25.2x which is higher than its 3-year average PE of 16.9x.

The 3-year average PS ratio of 1.3x is higher than the industry's current PS ratio of 0.79x.

Past Earnings Growth

The earnings for companies in the Communication Services industry have declined 26% per year over the last three years.
Meanwhile revenues for these companies have grown 3.8% 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, which has decreased profits.

Industry Trends

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


ZA Market	0.30%
Telecom	-0.058%
Entertainment	0%
Interactive Media and Services	0%
Media	0%
Wireless Telecom	-0.012%
Telecom Services and Carriers	-0.97%

Industry PE

Investors are most optimistic about the Wireless Telecom industry, which is trading close to its 3-year average PE ratio of 15.1x.

Analysts are expecting annual earnings growth of 36.2%, which is higher than its past year's earnings decline of 36.0% per year.

Forecasted Growth

Analysts are most optimistic on the Telecom Services and Carriers industry, expecting annual earnings growth of 120% over the next 5 years.
This is better than its past earnings growth rate of 79% per year.

In contrast, the Wireless Telecom industry is expected to see its earnings grow by 36% per year over the next few years.

Company	Last Price	7D	1Y	Valuation
VOD Vodacom Group	R89.22	1.4% +R2.4b	-27.4%	PE9.9x
MCG MultiChoice Group	R117.00	0.9% +R466.4m	3.2%	PS0.8x
BLU Blue Label Telecoms	R4.14	1.0% +R35.9m	-2.8%	PE4.9x

Company

Last Price

Valuation

VOD Vodacom Group

R89.22

1.4%
+R2.4b

-27.4%

PE9.9x

MCG MultiChoice Group

R117.00

0.9%
+R466.4m

3.2%