Aussie Broadband Limited

ASX:ABB Stock Report

Market Cap: AU$1.0b

Aussie Broadband Valuation

Is ABB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of ABB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ABB (A$3.52) is trading below our estimate of fair value (A$8.74)

Significantly Below Fair Value: ABB is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABB?

Key metric: As ABB is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for ABB. This is calculated by dividing ABB's market cap by their current earnings.
What is ABB's PE Ratio?
PE Ratio39.5x
EarningsAU$26.38m
Market CapAU$1.04b

Price to Earnings Ratio vs Peers

How does ABB's PE Ratio compare to its peers?

The above table shows the PE ratio for ABB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.6x
603322 Super TelecomLtd
71.6xn/aCN¥5.3b
4423 ARTERIA Networks
17x4.6%JP¥98.8b
RAILTEL RailTel Corporation of India
44.9x21.9%₹117.1b
TSAT Telesat
4.8x-110.9%CA$810.6m
ABB Aussie Broadband
39.5x25.5%AU$1.0b

Price-To-Earnings vs Peers: ABB is good value based on its Price-To-Earnings Ratio (39.5x) compared to the peer average (40.4x).

Price to Earnings Ratio vs Industry

How does ABB's PE Ratio compare vs other companies in the Global Telecom Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
ABB 39.5xIndustry Avg. 15.9xNo. of Companies28PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: ABB is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the Global Telecom industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is ABB's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABB PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio39.5x
Fair PE Ratio33.5x

Price-To-Earnings vs Fair Ratio: ABB is expensive based on its Price-To-Earnings Ratio (39.5x) compared to the estimated Fair Price-To-Earnings Ratio (33.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst ABB forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$3.52
AU$3.94
+12.0%
9.7%AU$4.42AU$3.30n/a9
Nov ’25AU$3.65
AU$3.89
+6.5%
9.5%AU$4.42AU$3.30n/a8
Oct ’25AU$3.72
AU$3.86
+3.7%
8.6%AU$4.25AU$3.30n/a8
Sep ’25AU$3.37
AU$3.84
+13.9%
9.1%AU$4.25AU$3.30n/a7
Aug ’25AU$3.12
AU$3.60
+15.5%
10.4%AU$4.20AU$3.10n/a7
Jul ’25AU$3.44
AU$4.13
+20.1%
12.5%AU$4.90AU$3.30n/a7
Jun ’25AU$3.44
AU$4.13
+20.1%
12.5%AU$4.90AU$3.30n/a7
May ’25AU$3.71
AU$4.16
+12.2%
13.2%AU$4.90AU$3.30n/a7
Apr ’25AU$3.58
AU$4.17
+16.5%
12.9%AU$4.90AU$3.35n/a7
Mar ’25AU$4.34
AU$4.36
+0.5%
22.7%AU$5.80AU$2.40n/a7
Feb ’25AU$3.82
AU$3.76
-1.5%
16.5%AU$4.50AU$2.40n/a7
Jan ’25AU$3.90
AU$3.74
-4.1%
16.8%AU$4.50AU$2.40n/a7
Dec ’24AU$3.74
AU$3.65
-2.5%
16.1%AU$4.20AU$2.40n/a6
Nov ’24AU$3.92
AU$3.54
-9.6%
15.6%AU$4.19AU$2.40AU$3.656
Oct ’24AU$4.11
AU$3.43
-16.5%
14.3%AU$3.84AU$2.40AU$3.726
Sep ’24AU$3.56
AU$3.73
+4.7%
22.9%AU$5.50AU$2.40AU$3.377
Aug ’24AU$2.80
AU$3.51
+25.5%
26.3%AU$5.50AU$2.40AU$3.127
Jul ’24AU$2.98
AU$3.53
+18.4%
26.1%AU$5.50AU$2.40AU$3.447
Jun ’24AU$2.79
AU$3.59
+28.8%
24.7%AU$5.50AU$2.40AU$3.447
May ’24AU$3.33
AU$3.61
+8.3%
24.5%AU$5.50AU$2.40AU$3.717
Apr ’24AU$3.12
AU$3.61
+15.6%
24.5%AU$5.50AU$2.40AU$3.587
Mar ’24AU$3.17
AU$3.62
+14.3%
24.4%AU$5.50AU$2.40AU$4.347
Feb ’24AU$2.98
AU$3.64
+22.0%
27.5%AU$5.41AU$2.10AU$3.826
Jan ’24AU$2.61
AU$3.66
+40.2%
25.2%AU$5.41AU$2.10AU$3.907
Dec ’23AU$2.65
AU$3.69
+39.2%
25.2%AU$5.41AU$2.10AU$3.747
Nov ’23AU$2.50
AU$3.76
+50.4%
25.4%AU$5.41AU$2.10AU$3.927

Analyst Forecast: Target price is less than 20% higher than the current share price.

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