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South African (JSE) Telecom Sector Analysis

UpdatedDec 12, 2025
DataAggregated Company Financials
Companies12
  • 7D1.0%
  • 3M6.5%
  • 1Y46.7%
  • YTD45.2%

The Telecom industry has been flat over the last week, but Cell C Holdings has lost 8.1%. The past year has been better, since the industry has gained 47% in that time. As for the next few years, earnings are expected to grow by 29% per annum.

Sector Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 12 Dec 2025R654.6bR486.7bR34.4b8x19x1.3x
Sun, 09 Nov 2025R658.7bR478.0bR31.4b8.4x21x1.4x
Tue, 07 Oct 2025R618.2bR478.0bR31.4b9.6x19.7x1.3x
Thu, 04 Sep 2025R614.3bR477.9bR31.5b8.8x19.5x1.3x
Sat, 02 Aug 2025R646.8bR459.8bR12.5b13.2x51.6x1.4x
Mon, 30 Jun 2025R612.0bR459.8bR12.5b12.7x48.8x1.3x
Wed, 28 May 2025R514.1bR408.1bR10.2b10.5x50.3x1.3x
Fri, 25 Apr 2025R490.9bR407.2bR8.4b10.2x58.6x1.2x
Sun, 23 Mar 2025R470.7bR407.2bR8.4b9.6x56.2x1.2x
Tue, 18 Feb 2025R461.9bR418.2bR10.5b8.8x44.1x1.1x
Thu, 16 Jan 2025R409.1bR418.2bR10.5b8.2x39.1x1x
Sat, 14 Dec 2024R394.0bR418.2bR10.5b8.5x37.6x0.9x
Mon, 11 Nov 2024R379.3bR416.7bR11.9b8x31.8x0.9x
Wed, 09 Oct 2024R385.5bR416.7bR11.9b8.2x32.3x0.9x
Fri, 06 Sep 2024R403.5bR416.9bR11.9b8.3x33.9x1x
Sun, 04 Aug 2024R347.1bR441.3bR23.5b7.9x14.8x0.8x
Tue, 02 Jul 2024R360.7bR441.3bR23.5b8.2x15.3x0.8x
Thu, 30 May 2024R358.1bR442.6bR12.4b11.2x28.8x0.8x
Sat, 27 Apr 2024R351.0bR430.2bR13.5b9.7x25.9x0.8x
Mon, 25 Mar 2024R373.7bR431.7bR30.0b7.9x12.5x0.9x
Wed, 21 Feb 2024R357.2bR434.1bR29.6b9.7x12.1x0.8x
Fri, 19 Jan 2024R427.7bR434.1bR29.6b10x14.4x1x
Sun, 17 Dec 2023R430.8bR434.1bR29.6b10.2x14.5x1x
Tue, 14 Nov 2023R414.2bR473.6bR25.2b8x16.4x0.9x
Thu, 12 Oct 2023R459.1bR473.6bR25.2b9.8x18.2x1x
Sat, 09 Sep 2023R487.0bR473.4bR25.2b7.8x19.3x1x
Mon, 07 Aug 2023R514.5bR457.2bR24.1b6.7x21.3x1.1x
Wed, 05 Jul 2023R529.3bR457.6bR24.1b7x21.9x1.2x
Fri, 02 Jun 2023R498.6bR454.6bR39.2b6.9x12.7x1.1x
Sun, 30 Apr 2023R549.3bR442.1bR38.8b7.6x14.1x1.2x
Tue, 28 Mar 2023R551.4bR442.1bR38.8b7.6x14.2x1.2x
Thu, 23 Feb 2023R587.9bR426.3bR39.1b6.5x15.1x1.4x
Sat, 21 Jan 2023R555.8bR426.3bR39.1b7.1x14.2x1.3x
Mon, 19 Dec 2022R536.1bR426.3bR39.1b6.7x13.7x1.3x
Price to Earnings Ratio

13.7x


Total Market Cap: R536.1bTotal Earnings: R39.1bTotal Revenue: R426.3bTotal Market Cap vs Earnings and Revenue0%0%0%
South African Telecom Sector Price to Earnings3Y Average 26.6x202320242025
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 19.3x which is lower than its 3-year average PE of 26.6x.
  • The 3-year average PS ratio of 1.1x is lower than the industry's current PS ratio of 1.4x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have declined 4.1% per year over the last three years.
  • Meanwhile revenues for these companies have grown 4.5% 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 Market1.09%
Telecom0.97%
Telecom Services and Carriers3.81%
Wireless Telecom0.89%
Media-0.0089%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio of 19.9x.
    • Analysts are expecting annual earnings growth of 40.0%, which is higher than its past year's earnings decline of 3.8% per year.
  • 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 Media industry, expecting annual earnings growth of 40% over the next 5 years.
  • This is better than its past earnings decline of 3.8% per year.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings decline by 7.1% 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
VOD Vodacom GroupR134.371.5%
+R3.8b		26.5%PE13.8x
TKG Telkom SA SOCR53.314.3%
+R1.1b		50.0%PE7.5x
MTN MTN GroupR157.800.3%
+R1.0b		83.8%PE38.3x
BLU Blu Label Unlimited GroupR10.352.5%
+R224.8m		78.4%PE3.7x
CAT Caxton and CTP Publishers and PrintersR13.540.9%
+R42.4m		7.5%PE8x

Latest News

MTN
R157.80
MTN Group
7D
0.3%
1Y
83.8%

Is It Too Late To Consider Buying MTN Group Limited (JSE:MTN)?

Dec 12
Is It Too Late To Consider Buying MTN Group Limited (JSE:MTN)?
TKG
R53.31
Telkom SA SOC
7D
4.3%
1Y
50.0%

TKG: Future Earnings Multiple Will Offset Softer Margins And Growth Expectations

Analysts have trimmed their price target on Telkom SA SOC slightly to R53.00 from R53.40, citing a higher perceived discount rate, more muted revenue growth expectations, and softer profit margin forecasts, partially offset by a higher future P/E multiple assumption. Valuation Changes The consensus analyst price target decreased slightly from ZAR 53.40 to ZAR 53.00, reflecting a modest downward revision in fair value.
VOD
R134.37
Vodacom Group
7D
1.5%
1Y
26.5%

VOD: East African Expansion And Dividend Payout Will Support Steady Outlook

Analysts have modestly raised their price target on Vodacom Group from approximately R140.80 to about R145.22 per share. This reflects slightly lower discount rate assumptions and a marginally higher future price to earnings multiple, which together more than offset small trims to long term revenue growth and profit margin expectations.
AME
R41.01
African Media Entertainment
7D
-7.8%
1Y
0.1%
EMH
R2.35
eMedia Holdings
7D
-1.7%
1Y
-32.9%
BLU
R10.35
Blu Label Unlimited Group
7D
2.5%
1Y
78.4%
CAT
R13.54
Caxton and CTP Publishers and Printers
7D
0.9%
1Y
7.5%