Helios Towers plc

LSE:HTWS Stock Report

Market Cap: UK£1.0b

Helios Towers Valuation

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

Below Fair Value: HTWS (£0.95) is trading below our estimate of fair value (£2.51)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for HTWS. This is calculated by dividing HTWS's market cap by their current revenue.
What is HTWS's PS Ratio?
PS Ratio1.7x
SalesUS$760.70m
Market CapUS$1.28b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for HTWS 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£14.7b
ZEG Zegona Communications
9.8x37.6%UK£2.5b
GAMA Gamma Communications
2.7x6.6%UK£1.5b
AAF Airtel Africa
1x12.6%UK£3.5b
HTWS Helios Towers
1.7x8.0%UK£1.0b

Price-To-Sales vs Peers: HTWS 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 HTWS's PS Ratio compare vs other companies in the European Telecom Industry?

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
HTWS 1.7xIndustry Avg. 1.1xNo. of Companies11PS012345+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: HTWS 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 HTWS'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.

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

Price-To-Sales vs Fair Ratio: HTWS 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 HTWS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£0.95
UK£1.75
+84.3%
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£1.13
UK£1.75
+54.6%
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£1.18
UK£1.81
+53.3%
24.5%UK£2.64UK£1.10n/a7
Jun ’25UK£1.25
UK£1.74
+39.1%
26.1%UK£2.64UK£1.10n/a8
May ’25UK£1.00
UK£1.72
+71.8%
27.8%UK£2.70UK£1.02n/a8
Apr ’25UK£0.95
UK£1.68
+77.0%
28.1%UK£2.65UK£1.00n/a8
Mar ’25UK£0.77
UK£1.70
+121.8%
27.6%UK£2.62UK£0.99n/a8
Feb ’25UK£0.76
UK£1.69
+122.5%
27.7%UK£2.62UK£0.99n/a8
Jan ’25UK£0.89
UK£1.68
+89.1%
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
+200.4%
24.6%UK£2.66UK£0.95UK£1.108
Oct ’24UK£0.73
UK£1.89
+157.4%
17.9%UK£2.65UK£1.55UK£1.148
Sep ’24UK£0.89
UK£1.85
+106.8%
18.9%UK£2.65UK£1.51UK£1.138
Aug ’24UK£0.87
UK£1.78
+105.0%
20.3%UK£2.64UK£1.44UK£1.278
Jul ’24UK£0.93
UK£1.80
+93.4%
19.1%UK£2.60UK£1.47UK£1.188
Jun ’24UK£0.91
UK£1.88
+106.3%
18.6%UK£2.68UK£1.52UK£1.259
May ’24UK£1.04
UK£1.85
+77.6%
18.3%UK£2.63UK£1.47UK£1.009
Apr ’24UK£1.04
UK£1.86
+78.2%
18.1%UK£2.65UK£1.49UK£0.959
Mar ’24UK£1.07
UK£1.87
+74.3%
18.1%UK£2.70UK£1.52UK£0.779
Feb ’24UK£1.08
UK£1.80
+66.6%
18.6%UK£2.62UK£1.48UK£0.769
Jan ’24UK£1.06
UK£1.86
+75.6%
20.6%UK£2.70UK£1.35UK£0.898
Dec ’23UK£1.16
UK£1.95
+68.8%
22.4%UK£2.86UK£1.43UK£0.737
Nov ’23UK£1.20
UK£1.98
+65.3%
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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