Airtel Africa Plc

BATS-CHIXE:AAFL Stock Report

Market Cap: UK£5.3b

Airtel Africa Valuation

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

Discounted Cash Flow
Simply Wall St
UK£3.85
Fair Value
62.4% undervalued intrinsic discount
9
Number of Analysts

Below Fair Value: AAFL (£1.45) is trading below our estimate of fair value (£3.85)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for AAFL. This is calculated by dividing AAFL's market cap by their current earnings.
What is AAFL's PE Ratio?
PE Ratio112.2x
EarningsUS$60.00m
Market CapUS$6.73b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for AAFL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.8x
VOD Vodafone Group
8.6x1.9%UK£16.9b
BT.A BT Group
19.4x17.1%UK£14.8b
GAMA Gamma Communications
23.1x14.0%UK£1.3b
MAXIS Maxis Berhad
24.2x11.9%RM 27.3b
AAFL Airtel Africa
112.2x41.7%UK£5.3b

Price-To-Earnings vs Peers: AAFL is expensive based on its Price-To-Earnings Ratio (112.2x) compared to the peer average (18.8x).

Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
No. of Companies10PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: AAFL is expensive based on its Price-To-Earnings Ratio (112.2x) compared to the Global Wireless Telecom industry average (16.4x).

Price to Earnings Ratio vs Fair Ratio

What is AAFL'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.

AAFL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio112.2x
Fair PE Ratio29.6x

Price-To-Earnings vs Fair Ratio: AAFL is expensive based on its Price-To-Earnings Ratio (112.2x) compared to the estimated Fair Price-To-Earnings Ratio (29.6x).

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 AAFL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£1.45
UK£1.56
+7.9%
25.6%UK£2.41UK£1.16n/a9
Feb ’26UK£1.45
UK£1.41
-2.6%
18.1%UK£2.00UK£1.15n/a9
Jan ’26UK£1.14
UK£1.36
+19.4%
19.5%UK£2.00UK£1.06n/a9
Dec ’25UK£1.06
UK£1.35
+27.1%
20.1%UK£2.00UK£1.05n/a9
Nov ’25UK£1.03
UK£1.37
+33.1%
17.9%UK£2.00UK£1.19n/a9
Oct ’25UK£1.13
UK£1.35
+19.8%
17.5%UK£1.95UK£1.17n/a9
Sep ’25UK£1.16
UK£1.37
+17.8%
16.9%UK£1.98UK£1.19n/a9
Aug ’25UK£1.13
UK£1.43
+26.7%
15.7%UK£2.02UK£1.22n/a10
Jul ’25UK£1.19
UK£1.39
+16.7%
18.3%UK£2.00UK£1.04n/a10
Jun ’25UK£1.22
UK£1.32
+8.3%
11.7%UK£1.58UK£1.03n/a10
May ’25UK£1.12
UK£1.34
+19.6%
14.7%UK£1.62UK£0.95n/a10
Apr ’25UK£1.06
UK£1.32
+25.0%
15.1%UK£1.59UK£0.93n/a10
Mar ’25UK£0.98
UK£1.41
+44.8%
21.6%UK£2.11UK£0.93n/a10
Feb ’25UK£1.11
UK£1.52
+36.8%
16.2%UK£2.09UK£1.27UK£1.4510
Jan ’25UK£1.30
UK£1.57
+21.0%
17.1%UK£2.11UK£1.28UK£1.148
Dec ’24UK£1.12
UK£1.55
+38.1%
16.5%UK£2.10UK£1.28UK£1.068
Nov ’24UK£1.18
UK£1.59
+34.6%
15.5%UK£2.10UK£1.33UK£1.038
Oct ’24UK£1.25
UK£1.62
+29.4%
15.6%UK£2.11UK£1.32UK£1.138
Sep ’24UK£1.15
UK£1.64
+42.5%
37.6%UK£3.08UK£0.75UK£1.168
Aug ’24UK£1.16
UK£1.59
+37.0%
38.9%UK£3.05UK£0.74UK£1.138
Jul ’24UK£1.08
UK£1.60
+47.8%
36.3%UK£3.02UK£0.75UK£1.199
Jun ’24UK£1.20
UK£1.64
+36.4%
35.7%UK£3.05UK£0.72UK£1.229
May ’24UK£1.20
UK£1.66
+38.3%
34.7%UK£3.03UK£0.73UK£1.129
Apr ’24UK£1.07
UK£1.67
+56.8%
34.8%UK£3.06UK£0.73UK£1.069
Mar ’24UK£1.20
UK£1.72
+43.1%
33.0%UK£3.06UK£0.75UK£0.989
Feb ’24UK£1.17
UK£1.66
+42.3%
34.6%UK£3.03UK£0.70UK£1.119
Analyst Price Target
Consensus Narrative from 9 Analysts
UK£1.55
Fair Value
6.7% undervalued intrinsic discount
9
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/16 17:05
End of Day Share Price 2025/02/14 00:00
Earnings2024/12/31
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Airtel Africa Plc is covered by 18 analysts. 12 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Linet MuriungiAbsa Bank Limited
Maurice PatrickBarclays
Cesar TironBofA Global Research