Telkom SA SOC Ltd

DB:TZL1 Stock Report

Market Cap: €839.5m

Telkom SA SOC Valuation

Is TZL1 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-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 TZL1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TZL1 (€1.61) is trading below our estimate of fair value (€3.84)

Significantly Below Fair Value: TZL1 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TZL1?

Key metric: As TZL1 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for TZL1. This is calculated by dividing TZL1's market cap by their current earnings.
What is TZL1's PE Ratio?
PE Ratio10.5x
EarningsR1.52b
Market CapR15.85b

Price to Earnings Ratio vs Peers

How does TZL1's PE Ratio compare to its peers?

The above table shows the PE ratio for TZL1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.1x
O2D Telefónica Deutschland Holding
22.7x-11.4%€6.2b
O2D Telefónica Deutschland Holding
26.5x-41.1%€7.2b
E4C ecotel communication ag
51.1x64.5%€47.3m
DTE Deutsche Telekom
24.1x18.8%€144.3b
TZL1 Telkom SA SOC
10.5x16.9%€15.8b

Price-To-Earnings vs Peers: TZL1 is good value based on its Price-To-Earnings Ratio (10.5x) compared to the peer average (31.1x).

Price to Earnings Ratio vs Industry

How does TZL1's PE Ratio compare vs other companies in the European Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TZL1 10.5xIndustry Avg. 18.3xNo. of Companies7PE01020304050+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TZL1 is good value based on its Price-To-Earnings Ratio (10.5x) compared to the European Telecom industry average (18.3x).

Price to Earnings Ratio vs Fair Ratio

What is TZL1'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.

TZL1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10.5x
Fair PE Ratio24.6x

Price-To-Earnings vs Fair Ratio: TZL1 is good value based on its Price-To-Earnings Ratio (10.5x) compared to the estimated Fair Price-To-Earnings Ratio (24.6x).

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 TZL1 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€1.61
€1.65
+2.3%
19.3%€2.08€1.14n/a6
Nov ’25€1.35
€1.65
+22.3%
19.3%€2.08€1.14n/a6
Oct ’25€1.32
€1.65
+25.0%
19.3%€2.08€1.14n/a6
Sep ’25€1.38
€1.59
+14.9%
18.2%€2.03€1.12n/a6
Aug ’25€1.15
€1.55
+34.8%
18.3%€2.03€1.12n/a7
Jul ’25€1.19
€1.60
+34.2%
17.5%€2.05€1.13n/a7
Jun ’25€1.12
€1.58
+41.4%
16.0%€2.00€1.10n/a7
May ’25€1.14
€1.58
+38.9%
16.0%€2.00€1.10n/a7
Apr ’25€1.37
€1.46
+6.9%
14.6%€1.70€1.02n/a6
Mar ’25€1.29
€1.47
+14.1%
16.0%€1.71€1.03n/a5
Feb ’25€1.34
€1.48
+10.3%
16.0%€1.72€1.03n/a5
Jan ’25€1.37
€1.34
-2.4%
19.0%€1.56€0.93n/a4
Dec ’24€1.16
€1.50
+29.2%
34.6%€2.34€0.93n/a4
Nov ’24€1.07
€1.50
+40.1%
34.6%€2.34€0.93€1.354
Oct ’24€1.08
€1.50
+38.8%
34.6%€2.34€0.93€1.324
Sep ’24€1.27
€1.51
+18.6%
32.3%€2.31€1.01€1.384
Aug ’24€1.46
€1.47
+0.5%
32.9%€2.39€1.05€1.155
Jul ’24€1.50
€1.57
+4.5%
28.2%€2.35€1.03€1.196
Jun ’24€1.25
€1.52
+21.4%
27.9%€2.26€0.99€1.126
May ’24€1.57
€1.65
+5.3%
25.1%€2.42€1.26€1.146
Apr ’24€1.69
€1.65
-2.1%
25.1%€2.42€1.26€1.376
Mar ’24€1.95
€1.67
-14.3%
24.0%€2.49€1.29€1.297
Feb ’24€1.79
€1.71
-4.3%
31.8%€2.91€1.35€1.346
Jan ’24€1.63
€1.83
+12.3%
30.1%€3.04€1.41€1.376
Dec ’23€1.89
€1.83
-3.1%
30.1%€3.04€1.41€1.166
Nov ’23€1.99
€2.36
+18.6%
21.4%€3.06€1.64€1.074

Analyst Forecast: Target price is lower than the current share price.

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