Airtel Africa Plc

LSE:AAF Stock Report

Market Cap: UK£3.5b

Airtel Africa Valuation

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

Below Fair Value: AAF (£0.97) is trading below our estimate of fair value (£11.09)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for AAF. This is calculated by dividing AAF's market cap by their current revenue.
What is AAF's PS Ratio?
PS Ratio1x
SalesUS$4.74b
Market CapUS$4.43b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for AAF vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.4x
VOD Vodafone Group
0.6x0.9%UK£18.5b
GAMA Gamma Communications
2.7x6.6%UK£1.5b
BT.A BT Group
0.7x0.3%UK£14.7b
HTWS Helios Towers
1.7x8.0%UK£1.0b
AAF Airtel Africa
1x12.6%UK£3.5b

Price-To-Sales vs Peers: AAF is good value based on its Price-To-Sales Ratio (1x) compared to the peer average (1.4x).

Price to Sales Ratio vs Industry

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

9 CompaniesPrice / SalesEstimated GrowthMarket Cap
AAF 1.0xIndustry Avg. 1.3xNo. of Companies15PS012345+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: AAF is good value based on its Price-To-Sales Ratio (1x) compared to the Global Wireless Telecom industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is AAF'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.

AAF PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1x
Fair PS Ratio2.1x

Price-To-Sales vs Fair Ratio: AAF is good value based on its Price-To-Sales Ratio (1x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

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 AAF forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.97
UK£1.38
+42.2%
18.3%UK£2.05UK£1.13n/a10
Nov ’25UK£1.03
UK£1.37
+33.3%
17.9%UK£2.00UK£1.19n/a9
Oct ’25UK£1.14
UK£1.35
+19.1%
17.5%UK£1.95UK£1.17n/a9
Sep ’25UK£1.16
UK£1.37
+17.7%
16.9%UK£1.98UK£1.19n/a9
Aug ’25UK£1.14
UK£1.43
+26.2%
15.7%UK£2.02UK£1.22n/a10
Jul ’25UK£1.18
UK£1.39
+17.3%
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
+24.8%
15.1%UK£1.59UK£0.93n/a10
Mar ’25UK£0.97
UK£1.41
+45.4%
21.6%UK£2.11UK£0.93n/a10
Feb ’25UK£1.11
UK£1.52
+37.5%
16.2%UK£2.09UK£1.27n/a10
Jan ’25UK£1.30
UK£1.57
+20.8%
17.1%UK£2.11UK£1.28n/a8
Dec ’24UK£1.12
UK£1.55
+38.8%
16.5%UK£2.10UK£1.28n/a8
Nov ’24UK£1.17
UK£1.59
+35.3%
15.5%UK£2.10UK£1.33UK£1.038
Oct ’24UK£1.26
UK£1.62
+29.0%
15.6%UK£2.11UK£1.32UK£1.148
Sep ’24UK£1.15
UK£1.64
+42.6%
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£1.148
Jul ’24UK£1.08
UK£1.60
+48.4%
36.3%UK£3.02UK£0.75UK£1.189
Jun ’24UK£1.21
UK£1.64
+35.3%
35.7%UK£3.05UK£0.72UK£1.229
May ’24UK£1.20
UK£1.66
+38.2%
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
+42.7%
33.0%UK£3.06UK£0.75UK£0.979
Feb ’24UK£1.16
UK£1.66
+43.1%
34.6%UK£3.03UK£0.70UK£1.119
Jan ’24UK£1.12
UK£1.69
+50.8%
34.8%UK£3.10UK£0.71UK£1.309
Dec ’23UK£1.24
UK£1.68
+36.0%
34.6%UK£2.96UK£0.72UK£1.128
Nov ’23UK£1.16
UK£1.78
+53.6%
35.9%UK£3.09UK£0.75UK£1.178

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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