Parlem Telecom Companyia de Telecomunicacions, S.A.

DB:4HW Stock Report

Market Cap: €63.6m

Parlem Telecom Companyia de Telecomunicacions Valuation

Is 4HW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 4HW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 4HW (€3.22) is trading below our estimate of fair value (€12.19)

Significantly Below Fair Value: 4HW is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 4HW?

Key metric: As 4HW is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 4HW. This is calculated by dividing 4HW's market cap by their current revenue.
What is 4HW's PS Ratio?
PS Ratio1.4x
Sales€45.39m
Market Cap€63.55m

Price to Sales Ratio vs Peers

How does 4HW's PS Ratio compare to its peers?

The above table shows the PS ratio for 4HW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
E4C ecotel communication ag
0.4x9.6%€48.2m
UTDI United Internet
0.4x4.3%€2.7b
NFN NFON
1.1x9.4%€89.4m
O2D Telefónica Deutschland Holding
0.7x-1.3%€6.2b
4HW Parlem Telecom Companyia de Telecomunicacions
1.4x11.9%€63.6m

Price-To-Sales vs Peers: 4HW is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

How does 4HW's PS Ratio compare vs other companies in the European Telecom Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
4HW 1.4xIndustry Avg. 1.1xNo. of Companies11PS012345+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 4HW is expensive based on its Price-To-Sales Ratio (1.4x) compared to the European Telecom industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is 4HW's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

4HW PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio0.7x

Price-To-Sales vs Fair Ratio: 4HW is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (0.7x).

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 4HW forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.22
€4.60
+42.8%
0.04%€4.60€4.60n/a2
Nov ’25€3.34
€4.50
+34.7%
2.2%€4.60€4.40n/a2
Oct ’25€3.42
€4.50
+31.5%
2.2%€4.60€4.40n/a2
Sep ’25€3.28
€4.50
+37.1%
2.2%€4.60€4.40n/a2
Aug ’25€3.40
€4.50
+32.3%
2.2%€4.60€4.40n/a2
Jul ’25€3.46
€4.50
+30.0%
2.2%€4.60€4.40n/a2
Jun ’25€3.34
€4.50
+34.7%
2.2%€4.60€4.40n/a2
May ’25€3.50
€4.50
+28.6%
2.2%€4.60€4.40n/a2
Apr ’25€3.48
€4.57
+31.4%
3.8%€4.75€4.40n/a2
Mar ’25€3.00
€4.67
+55.8%
1.6%€4.75€4.60n/a2
Feb ’25€2.79
€4.67
+67.5%
1.6%€4.75€4.60n/a2
Jan ’25€2.78
€4.67
+68.1%
1.6%€4.75€4.60n/a2
Dec ’24€2.87
€4.67
+62.8%
1.6%€4.75€4.60n/a2
Nov ’24€2.89
€4.67
+61.7%
1.6%€4.75€4.60€3.342
Oct ’24€2.97
€4.57
+54.0%
3.8%€4.75€4.40€3.422
Sep ’24€3.11
€4.57
+47.1%
3.8%€4.75€4.40€3.282
Aug ’24€2.91
€4.57
+57.2%
3.8%€4.75€4.40€3.402
Jul ’24€2.78
€4.74
+70.4%
26.1%€6.42€3.50€3.463
Jun ’24€2.72
€4.74
+74.1%
26.1%€6.42€3.50€3.343
May ’24€2.46
€4.74
+92.5%
26.1%€6.42€3.50€3.503
Apr ’24€2.60
€4.90
+88.6%
22.0%€6.42€4.00€3.483
Mar ’24€3.10
€4.90
+58.2%
22.0%€6.42€4.00€3.003
Feb ’24€3.31
€5.37
+62.2%
16.2%€6.42€4.29€2.793
Jan ’24€3.41
€5.37
+57.5%
16.2%€6.42€4.29€2.783
Dec ’23€3.58
€5.24
+46.4%
19.8%€6.42€3.90€2.873

Analyst Forecast: Target price is more than 20% higher than the current share price, but there are not enough analysts covering the stock to determine statistical confidence in agreement.

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