Spark New Zealand Limited

ASX:SPK Stock Report

Market Cap: AU$4.9b

Spark New Zealand Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 SPK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SPK (A$2.74) is trading below our estimate of fair value (A$4.81)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SPK. This is calculated by dividing SPK's market cap by their current earnings.
What is SPK's PE Ratio?
PE Ratio17.4x
EarningsNZ$316.00m
Market CapNZ$5.49b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SPK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average24.4x
TLS Telstra Group
27.7x10.4%AU$44.9b
ABB Aussie Broadband
39.6x23.2%AU$1.0b
A032640 LG Uplus
9.1x7.7%₩4.8t
HT Hrvatski Telekom d.d
21.1x3.8%€3.0b
SPK Spark New Zealand
17.4x4.6%AU$5.5b

Price-To-Earnings vs Peers: SPK is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (24.4x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SPK 17.4xIndustry Avg. 16.0xNo. of Companies26PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SPK is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the Global Telecom industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is SPK'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.

SPK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.4x
Fair PE Ratio28.2x

Price-To-Earnings vs Fair Ratio: SPK is good value based on its Price-To-Earnings Ratio (17.4x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).

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 SPK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentAU$2.74
AU$3.52
+28.5%
18.8%AU$4.51AU$2.52n/a8
Nov ’25AU$2.64
AU$3.64
+37.7%
21.0%AU$4.81AU$2.59n/a8
Oct ’25AU$2.78
AU$4.04
+45.3%
15.8%AU$4.87AU$2.71n/a8
Sep ’25AU$3.33
AU$4.24
+27.4%
9.1%AU$4.86AU$3.85n/a8
Aug ’25AU$4.03
AU$4.50
+11.6%
7.1%AU$5.01AU$4.10n/a8
Jul ’25AU$3.75
AU$4.52
+20.5%
5.9%AU$5.03AU$4.26n/a8
Jun ’25AU$3.80
AU$4.57
+20.2%
5.5%AU$5.04AU$4.26n/a8
May ’25AU$4.30
AU$4.89
+13.8%
4.7%AU$5.28AU$4.58n/a8
Apr ’25AU$4.37
AU$4.89
+12.0%
4.7%AU$5.28AU$4.58n/a8
Mar ’25AU$4.70
AU$4.89
+4.1%
4.7%AU$5.28AU$4.58n/a8
Feb ’25AU$4.93
AU$4.77
-3.3%
5.2%AU$5.26AU$4.52n/a8
Jan ’25AU$4.81
AU$4.77
-0.9%
5.2%AU$5.26AU$4.52n/a8
Dec ’24AU$4.77
AU$4.77
-0.04%
5.2%AU$5.26AU$4.52n/a8
Nov ’24AU$4.60
AU$4.86
+5.6%
5.2%AU$5.36AU$4.61AU$2.648
Oct ’24AU$4.47
AU$4.83
+8.0%
5.2%AU$5.27AU$4.53AU$2.788
Sep ’24AU$4.64
AU$4.83
+4.0%
5.2%AU$5.27AU$4.53AU$3.338
Aug ’24AU$4.80
AU$4.78
-0.4%
6.7%AU$5.35AU$4.33AU$4.038
Jul ’24AU$4.67
AU$4.76
+2.0%
6.9%AU$5.34AU$4.33AU$3.758
Jun ’24AU$4.85
AU$4.87
+0.3%
7.0%AU$5.45AU$4.42AU$3.808
May ’24AU$4.83
AU$4.82
-0.3%
6.0%AU$5.15AU$4.40AU$4.308
Apr ’24AU$4.69
AU$4.79
+2.1%
6.0%AU$5.12AU$4.37AU$4.378
Mar ’24AU$4.59
AU$4.69
+2.2%
5.7%AU$5.03AU$4.30AU$4.709
Feb ’24AU$4.79
AU$4.79
+0.06%
5.5%AU$5.11AU$4.29AU$4.938
Jan ’24AU$5.02
AU$4.97
-1.1%
6.8%AU$5.35AU$4.39AU$4.818
Dec ’23AU$4.81
AU$4.74
-1.4%
6.8%AU$5.10AU$4.19AU$4.778
Nov ’23AU$4.68
AU$4.71
+0.7%
7.9%AU$5.29AU$4.12AU$4.608

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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