MTN Group Limited

DB:LL6 Stock Report

Market Cap: €7.7b

MTN Group Valuation

Is LL6 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • 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 LL6 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LL6 (€4.16) is trading below our estimate of fair value (€15.53)

Significantly Below Fair Value: LL6 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LL6?

Key metric: As LL6 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for LL6. This is calculated by dividing LL6's market cap by their current revenue.
What is LL6's PS Ratio?
PS Ratio0.7x
SalesR199.16b
Market CapR148.24b

Price to Sales Ratio vs Peers

How does LL6's PS Ratio compare to its peers?

The above table shows the PS ratio for LL6 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.8x
FNTN freenet
1.2x0.2%€3.4b
1U1 1&1
0.5x2.4%€2.0b
O2D Telefónica Deutschland Holding
0.8x-1.1%€7.2b
O2D Telefónica Deutschland Holding
0.7x-1.3%€6.2b
LL6 MTN Group
0.7x7.5%€148.2b

Price-To-Sales vs Peers: LL6 is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

How does LL6's PS Ratio compare vs other companies in the Global Wireless Telecom Industry?

10 CompaniesPrice / SalesEstimated GrowthMarket Cap
LL6 0.7xIndustry Avg. 1.3xNo. of Companies16PS012345+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: LL6 is good value based on its Price-To-Sales Ratio (0.7x) compared to the Global Wireless Telecom industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is LL6'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.

LL6 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio1.2x

Price-To-Sales vs Fair Ratio: LL6 is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1.2x).

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 LL6 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€4.16
€5.39
+29.6%
17.5%€6.76€3.80n/a11
Nov ’25€4.34
€5.40
+24.5%
17.5%€6.78€3.81n/a11
Oct ’25€4.70
€5.57
+18.5%
14.8%€6.76€4.00n/a11
Sep ’25€4.40
€5.41
+23.0%
17.2%€7.11€3.91n/a11
Aug ’25€3.88
€5.34
+37.8%
16.6%€7.05€3.88n/a12
Jul ’25€4.38
€5.39
+23.1%
17.0%€7.07€4.04n/a12
Jun ’25€4.00
€5.39
+34.8%
17.0%€7.07€4.04n/a12
May ’25€4.40
€5.31
+20.8%
15.2%€6.47€3.98n/a12
Apr ’25€4.44
€5.44
+22.5%
15.4%€6.39€3.93n/a12
Mar ’25€3.92
€6.02
+53.6%
26.6%€9.55€3.82n/a11
Feb ’25€4.60
€6.84
+48.6%
19.7%€9.82€5.60n/a10
Jan ’25€5.45
€7.09
+30.1%
18.1%€9.88€5.09n/a10
Dec ’24€4.92
€7.12
+44.7%
18.8%€9.99€5.14n/a10
Nov ’24€4.60
€7.33
+59.5%
18.6%€10.22€5.26€4.3410
Oct ’24€5.60
€8.08
+44.3%
23.7%€12.57€5.73€4.709
Sep ’24€5.90
€7.79
+32.0%
23.7%€12.11€5.52€4.409
Aug ’24€6.65
€8.45
+27.1%
22.7%€12.88€5.87€3.8810
Jul ’24€6.50
€8.22
+26.5%
21.4%€12.25€5.58€4.3810
Jun ’24€5.60
€8.05
+43.8%
21.7%€11.85€5.40€4.0010
May ’24€6.15
€8.81
+43.3%
20.1%€12.56€6.08€4.409
Apr ’24€6.45
€8.97
+39.0%
20.0%€12.70€6.15€4.449
Mar ’24€7.20
€9.31
+29.3%
18.4%€13.05€6.32€3.9210
Feb ’24€7.55
€9.70
+28.5%
18.6%€13.45€6.51€4.6010
Jan ’24€6.80
€10.47
+54.0%
20.1%€14.25€6.89€5.4510
Dec ’23€7.30
€10.47
+43.5%
20.1%€14.25€6.89€4.9210
Nov ’23€7.25
€10.87
+50.0%
20.4%€14.34€6.94€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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