TPG Telecom Limited provides telecommunication services to residential users, small and medium enterprises, government, large corporate enterprises, and wholesale customers in Australia and internationally.
The last earnings update was 119 days ago.
Discounted Cash Flow Calculation for DB:YST using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:YST DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
TPG Telecom's share price is below the future cash flow value, and at a moderate discount (> 20%).
TPG Telecom's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
TPG Telecom's earnings available for a low price, and how does
this compare to other companies in the same industry?
TPG Telecom's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
TPG Telecom's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
TPG Telecom's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
Mr. David Teoh has been the Chief Executive Officer of TPG Telecom Limited (formerly, SP Telecommunications Ltd.) since April 7, 2008 and TPG Holdings Pty Ltd. since 1986. Mr. Teoh is the founder and Chief Executive Officer of the TPG group of companies. He has been the Executive Chairman and Director for TPG Telecom Limited since April 21, 2008 and April 7, 2008 respectively. He serves as the Executive Chairman and Director of TPG Soul Group of TPG Internet Pty Ltd. He has been a Director of iiNet Ltd. since August 25, 2015. He has been a Director of Pipe Networks Pty Limited since March 17, 2010. He serves as a Director of SPTCom Pty Ltd. Mr. Teoh served as a Director of IntraPower Limited.
David's compensation has been consistent with company performance over the past year, both up more than 20%.
David's remuneration is about average for companies of similar size in Germany.
Executive Chairman & CEO
CFO & Company Secretary
Chief Operating Officer
Mandie De Ville
Chief Information Officer
General Manager of Corporate Products & Pricing
Group Executive of Corporate
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the TPG Telecom board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Executive Chairman & CEO
Independent Non-Executive Director
Independent Non-Executive Director
Who owns this company?
Recent Insider Trading
No 3 month individual insider trading information.
TPG Telecom Limited provides telecommunication services to residential users, small and medium enterprises, government, large corporate enterprises, and wholesale customers in Australia and internationally. The company offers ADSL2+, NBN, fiber optic and Ethernet broadband access, telephony services, Internet protocol television, SIM only mobile plans, and various business networking solutions. It also provides various bundle plans; Internet products, including broadband off-net; POP3 and Internet message access protocol email accounts; phone cards; and video surveillance and business VOIP products. In addition, it offers dark fiber, point-to-point Ethernet, Ethernet multipoint connectivity, and Internet protocol virtual private network, and wavelength services; SIP and inbound voice, ISDN PRI and PSTN, and BizPhone services; and private cloud, virtual data center, national AWS connect, and co-location services. The company was formerly known as SP Telemedia Limited and changed its name to TPG Telecom Limited in December 2009. TPG Telecom Limited is headquartered in North Ryde, Australia.
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