Telecom Plus Plc

LSE:TEP Stock Report

Market Cap: UK£1.4b

Telecom Plus Valuation

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

Below Fair Value: TEP (£17.42) is trading below our estimate of fair value (£25.54)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TEP. This is calculated by dividing TEP's market cap by their current earnings.
What is TEP's PE Ratio?
PE Ratio19.4x
EarningsUK£71.04m
Market CapUK£1.38b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TEP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.3x
CNA Centrica
5.6x-10.8%UK£6.2b
NG. National Grid
27.6x15.5%UK£47.7b
DRX Drax Group
3.8x-27.6%UK£2.5b
YU. Yü Group
8.1x-1.7%UK£310.5m
TEP Telecom Plus
19.4x11.3%UK£1.4b

Price-To-Earnings vs Peers: TEP is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the peer average (11.3x).

Price to Earnings Ratio vs Industry

How does TEP's PE Ratio compare vs other companies in the Global Integrated Utilities Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TEP 19.4xIndustry Avg. 17.6xNo. of Companies8PE0816243240+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TEP is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the Global Integrated Utilities industry average (17.6x).

Price to Earnings Ratio vs Fair Ratio

What is TEP'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.

TEP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.4x
Fair PE Ratio15.6x

Price-To-Earnings vs Fair Ratio: TEP is expensive based on its Price-To-Earnings Ratio (19.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.6x).

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 TEP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUK£17.42
UK£27.38
+57.2%
11.7%UK£31.80UK£24.35n/a3
Nov ’25UK£16.90
UK£27.38
+62.0%
11.7%UK£31.80UK£24.35n/a3
Oct ’25UK£18.04
UK£27.38
+51.8%
11.7%UK£31.80UK£24.35n/a3
Sep ’25UK£18.44
UK£27.38
+48.5%
11.7%UK£31.80UK£24.35n/a3
Aug ’25UK£18.22
UK£27.38
+50.3%
11.7%UK£31.80UK£24.35n/a3
Jul ’25UK£17.64
UK£27.38
+55.2%
11.7%UK£31.80UK£24.35n/a3
Jun ’25UK£18.82
UK£25.82
+37.2%
11.9%UK£29.50UK£21.97n/a3
May ’25UK£17.20
UK£25.82
+50.1%
11.9%UK£29.50UK£21.97n/a3
Apr ’25UK£16.28
UK£25.82
+58.6%
11.9%UK£29.50UK£21.97n/a3
Mar ’25UK£14.92
UK£27.75
+86.0%
6.3%UK£29.50UK£26.00n/a2
Feb ’25UK£14.10
UK£27.75
+96.8%
6.3%UK£29.50UK£26.00n/a2
Jan ’25UK£16.12
UK£27.75
+72.1%
6.3%UK£29.50UK£26.00n/a2
Dec ’24UK£15.18
UK£27.75
+82.8%
6.3%UK£29.50UK£26.00n/a2
Nov ’24UK£15.76
UK£27.50
+74.5%
5.5%UK£29.00UK£26.00UK£16.902
Oct ’24UK£14.90
UK£28.75
+93.0%
9.6%UK£31.50UK£26.00UK£18.042
Sep ’24UK£15.84
UK£28.75
+81.5%
9.6%UK£31.50UK£26.00UK£18.442
Aug ’24UK£16.68
UK£28.75
+72.4%
9.6%UK£31.50UK£26.00UK£18.222
Jul ’24UK£16.90
UK£28.75
+70.1%
9.6%UK£31.50UK£26.00UK£17.642
Jun ’24UK£15.32
UK£28.75
+87.7%
9.6%UK£31.50UK£26.00UK£18.822
May ’24UK£18.06
UK£28.75
+59.2%
9.6%UK£31.50UK£26.00UK£17.202
Apr ’24UK£18.90
UK£28.75
+52.1%
9.6%UK£31.50UK£26.00UK£16.282
Mar ’24UK£18.80
UK£28.75
+52.9%
9.6%UK£31.50UK£26.00UK£14.922
Feb ’24UK£19.74
UK£28.75
+45.6%
9.6%UK£31.50UK£26.00UK£14.102
Jan ’24UK£21.95
UK£27.00
+23.0%
16.7%UK£31.50UK£22.50UK£16.122
Dec ’23UK£25.00
UK£26.67
+6.7%
13.9%UK£31.50UK£22.50UK£15.183
Nov ’23UK£21.60
UK£26.00
+20.4%
11.0%UK£29.50UK£22.50UK£15.763

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

Discover undervalued companies

Magnora

NOK 1.7b

Operates as a renewable energy development company in Norway, Sweden, and the United States.

0MHQ

NOK 25.15

7D

1.8%

1Y

-22.5%

Greencoat Renewables

€909.8m

Owns and operates renewable infrastructure in the Republic of Ireland, France, Finland, Germany, Spain, and Sweden.

GRP

€0.82

7D

0%

1Y

-12.8%

Enagás

€3.3b

Develops, operates, and maintains gas infrastructures in Spain and internationally.

0EBQ

€12.80

7D

1.2%

1Y

-21.8%