Helios Towers plc

BATS-CHIXE:HTWSL Stock Report

Market Cap: UK£998.6m

Helios Towers Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: HTWSL (£0.95) is trading below our estimate of fair value (£2.49)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for HTWSL. This is calculated by dividing HTWSL's market cap by their current revenue.
What is HTWSL's PS Ratio?
PS Ratio1.7x
SalesUS$760.70m
Market CapUS$1.26b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HTWSL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.6x
BT.A BT Group
0.7x0.3%UK£14.5b
ZEG Zegona Communications
9.8x37.6%UK£2.5b
GAMA Gamma Communications
2.7x6.6%UK£1.5b
AAF Airtel Africa
1x12.6%UK£3.6b
HTWSL Helios Towers
1.7x8.0%UK£998.6m

Price-To-Sales vs Peers: HTWSL is good value based on its Price-To-Sales Ratio (1.7x) compared to the peer average (3.6x).

Price to Sales Ratio vs Industry

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

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies11PS012345+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HTWSL is expensive based on its Price-To-Sales Ratio (1.7x) compared to the European Telecom industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is HTWSL'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.

HTWSL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.7x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: HTWSL is expensive based on its Price-To-Sales Ratio (1.7x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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 HTWSL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.94
UK£1.75
+85.3%
22.0%UK£2.49UK£1.16n/a8
Nov ’25UK£1.10
UK£1.70
+54.4%
23.1%UK£2.51UK£1.12n/a8
Oct ’25UK£1.14
UK£1.64
+44.5%
22.7%UK£2.45UK£1.09n/a8
Sep ’25UK£1.12
UK£1.75
+56.3%
24.9%UK£2.58UK£1.11n/a6
Aug ’25UK£1.27
UK£1.81
+42.4%
24.8%UK£2.64UK£1.09n/a7
Jul ’25UK£1.19
UK£1.81
+52.8%
24.5%UK£2.64UK£1.10n/a7
Jun ’25UK£1.26
UK£1.74
+38.2%
26.1%UK£2.64UK£1.10n/a8
May ’25UK£1.01
UK£1.72
+70.8%
27.8%UK£2.70UK£1.02n/a8
Apr ’25UK£0.94
UK£1.68
+79.2%
28.1%UK£2.65UK£1.00n/a8
Mar ’25UK£0.77
UK£1.70
+120.5%
27.6%UK£2.62UK£0.99n/a8
Feb ’25UK£0.76
UK£1.69
+122.2%
27.7%UK£2.62UK£0.99n/a8
Jan ’25UK£0.88
UK£1.68
+90.7%
27.3%UK£2.62UK£0.99n/a8
Dec ’24UK£0.73
UK£1.72
+134.9%
27.9%UK£2.67UK£0.96n/a8
Nov ’24UK£0.61
UK£1.85
+201.2%
24.6%UK£2.66UK£0.95UK£1.108
Oct ’24UK£0.74
UK£1.89
+154.9%
17.9%UK£2.65UK£1.55UK£1.148
Sep ’24UK£0.90
UK£1.85
+105.2%
18.9%UK£2.65UK£1.51UK£1.128
Aug ’24UK£0.87
UK£1.78
+105.9%
20.3%UK£2.64UK£1.44UK£1.278
Jul ’24UK£0.93
UK£1.80
+93.7%
19.1%UK£2.60UK£1.47UK£1.198
Jun ’24UK£0.90
UK£1.88
+108.7%
18.6%UK£2.68UK£1.52UK£1.269
May ’24UK£1.04
UK£1.85
+77.4%
18.3%UK£2.63UK£1.47UK£1.019
Apr ’24UK£1.04
UK£1.86
+78.2%
18.1%UK£2.65UK£1.49UK£0.949
Mar ’24UK£1.07
UK£1.87
+74.5%
18.1%UK£2.70UK£1.52UK£0.779
Feb ’24UK£1.09
UK£1.80
+65.7%
18.6%UK£2.62UK£1.48UK£0.769
Jan ’24UK£1.06
UK£1.86
+75.4%
20.6%UK£2.70UK£1.35UK£0.888
Dec ’23UK£1.15
UK£1.95
+70.1%
22.4%UK£2.86UK£1.43UK£0.737
Nov ’23UK£1.20
UK£1.98
+65.2%
21.7%UK£2.83UK£1.40UK£0.617

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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