Hutchison Telecommunications (Australia) Valuation

Is HTA 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-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: HTA (A$0.03) is trading below our estimate of fair value (A$0.08)

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

Key Valuation Metric

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

Key metric: As HTA barely has revenue we use its Price-To-Book Ratio for relative valuation analysis.

The above table shows the Price to Book ratio for HTA. This is calculated by dividing HTA's market cap by their current book value.
What is HTA's PB Ratio?
PB Ratio	2.3x
Book	AU$159.28m
Market Cap	AU$366.46m

HTA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	188.4x
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does HTA's PB Ratio compare to its peers?

The above table shows the PB ratio for HTA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PB	Estimated Growth	Market Cap
Peer Average	3.1x
BCT Bendigo Telco	2.7x	n/a	AU$3.9m
SLC Superloop	3x	79.8%	AU$1.1b
ABB Aussie Broadband	1.8x	25.5%	AU$1.0b
TUA Tuas	4.9x	n/a	AU$2.5b
HTA Hutchison Telecommunications (Australia)	2.3x	n/a	AU$366.5m

Price-To-Book vs Peers: HTA is good value based on its Price-To-Book Ratio (2.3x) compared to the peer average (3.1x).

Price to Book Ratio vs Industry

How does HTA's PB Ratio compare vs other companies in the Global Wireless Telecom Industry?

6 Companies	Price / Book	Estimated Growth	Market Cap

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Book vs Industry: HTA is expensive based on its Price-To-Book Ratio (2.3x) compared to the Global Wireless Telecom industry average (2x).

Price to Book Ratio vs Fair Ratio

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

HTA PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	2.3x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate HTA's Price-To-Book Fair Ratio for valuation analysis.

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.

Discover undervalued companies

Field Solutions Holdings

AU$19.3m

A telecommunications carrier and technology company, provides connectivity and business solutions for rural, regional, and remote areas in Australia.

FSG

AU$0.025

-16.7%

-41.9%

Spark New Zealand

NZ$5.7b

Provides telecommunications and digital services in New Zealand.

SPK

NZ$2.76

1.3%

-41.1%

TPG Telecom

AU$8.2b

Provides telecommunications services to consumer, business, enterprise, and government and wholesale customers in Australia.

TPG

AU$4.40

-1.1%

-5.6%