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South African (JSE) Telecom Sector Analysis

UpdatedMar 14, 2026
DataAggregated Company Financials
Companies11
  • 7D-5.4%
  • 3M12.5%
  • 1Y43.0%
  • YTD5.0%

Over the last 7 days, the Telecom industry has dropped 5.4%, driven by declines in Vodacom Group and MTN Group of 6.0% and 4.7%, respectively. This takes the industry's 12 month performance to a gain of 43%. As for the next few years, earnings are expected to grow by 30% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 14 Mar 2026R681.1bR454.5bR33.5b8.2x20.3x1.5x
Mon, 09 Feb 2026R704.1bR436.0bR33.2b8.2x21.2x1.6x
Wed, 07 Jan 2026R674.7bR436.0bR33.2b8.1x20.3x1.5x
Fri, 05 Dec 2025R637.9bR486.7bR34.4b7.9x18.5x1.3x
Sun, 02 Nov 2025R681.7bR478.0bR31.4b8.7x21.7x1.4x
Tue, 30 Sep 2025R602.3bR478.0bR31.4b8.9x19.2x1.3x
Thu, 28 Aug 2025R643.7bR478.2bR31.5b9x20.4x1.3x
Sat, 26 Jul 2025R618.8bR459.8bR12.5b13.1x49.3x1.3x
Mon, 23 Jun 2025R572.6bR459.8bR12.5b11.6x45.6x1.2x
Wed, 21 May 2025R521.1bR408.1bR10.2b10.5x51x1.3x
Fri, 18 Apr 2025R478.3bR407.2bR8.4b9.5x57.1x1.2x
Sun, 16 Mar 2025R459.4bR417.8bR10.5b9.4x43.6x1.1x
Tue, 11 Feb 2025R467.1bR418.2bR10.5b8.9x44.6x1.1x
Thu, 09 Jan 2025R383.1bR418.2bR10.5b8.2x36.6x0.9x
Sat, 07 Dec 2024R389.4bR418.2bR10.5b8.2x37.2x0.9x
Mon, 04 Nov 2024R393.8bR416.7bR11.9b8.5x33x0.9x
Wed, 02 Oct 2024R392.5bR416.7bR11.9b8.2x32.9x0.9x
Fri, 30 Aug 2024R407.9bR419.1bR12.0b8.1x34x1x
Sun, 28 Jul 2024R351.8bR441.3bR23.5b8x15x0.8x
Tue, 25 Jun 2024R364.2bR441.3bR23.5b8.2x15.5x0.8x
Thu, 23 May 2024R368.3bR442.6bR12.4b11.5x29.7x0.8x
Sat, 20 Apr 2024R341.0bR430.2bR13.5b9.5x25.2x0.8x
Mon, 18 Mar 2024R359.4bR431.7bR30.0b7.6x12x0.8x
Wed, 14 Feb 2024R368.8bR434.1bR29.6b10x12.5x0.8x
Fri, 12 Jan 2024R433.1bR434.1bR29.6b10x14.6x1x
Sun, 10 Dec 2023R403.7bR434.1bR29.6b9.8x13.6x0.9x
Tue, 07 Nov 2023R431.0bR473.6bR25.2b8.6x17.1x0.9x
Thu, 05 Oct 2023R450.9bR473.6bR25.2b9.8x17.9x1x
Sat, 02 Sep 2023R485.7bR473.0bR25.3b5.9x19.2x1x
Mon, 31 Jul 2023R544.4bR457.2bR24.1b6.9x22.6x1.2x
Wed, 28 Jun 2023R533.1bR457.6bR24.1b6.3x22.1x1.2x
Fri, 26 May 2023R491.1bR454.7bR39.3b6.4x12.5x1.1x
Sun, 23 Apr 2023R542.5bR442.1bR38.8b7.6x14x1.2x
Tue, 21 Mar 2023R536.2bR441.3bR38.7b7.7x13.9x1.2x
Price to Earnings Ratio

13.9x


Total Market Cap: R536.2bTotal Earnings: R38.7bTotal Revenue: R441.3bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 27.1x202420252026
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 20.3x which is lower than its 3-year average PE of 27.1x.
  • The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 4.7% 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 Market-1.90%
Telecom-5.42%
Media-3.90%
Wireless Telecom-5.23%
Telecom Services and Carriers-8.63%
Industry PE
  • Investors are most optimistic about the Telecom Services and Carriers industry which is trading above its 3-year average PE ratio of 6.2x.
    • Analysts are expecting annual earnings decline of 1.2%, which is lower than the prior year's growth of 91.6% per year.
  • Investors are most pessimistic about the Media industry, which is trading below its 3-year average of 12.2x.
Forecasted Growth
  • Analysts are most optimistic on the Wireless Telecom industry, expecting annual earnings growth of 31% over the next 5 years.
  • However this is lower than its past earnings growth rate of 303% per year.
  • 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
CCD Cell C HoldingsR26.890.9%
+R81.6m		n/aPE1.6x

Latest News

MTN
R182.91
MTN Group
7D
-4.7%
1Y
61.3%
BLU
R9.33
Blu Label Unlimited Group
7D
-5.4%
1Y
24.2%
CAT
R13.54
Caxton and CTP Publishers and Printers
7D
-5.2%
1Y
8.4%
TKG
R58.69
Telkom SA SOC
7D
-9.6%
1Y
71.7%
VOD
R146.01
Vodacom Group
7D
-6.0%
1Y
26.0%

VOD: Modest Margin Pressure Will Likely Restrain Future Upside Potential

Analysts have increased their Vodacom Group price target from ZAR125 to ZAR130, citing updated assumptions that reflect slightly higher modelled revenue growth, a modest adjustment to profit margins and a lower discount rate, while keeping the expected future P/E essentially unchanged. Valuation Changes Fair Value: raised from ZAR125 to ZAR130, representing a modest upward adjustment.