China Telecom Corporation Limited

SHSC:728 Stock Report

Market Cap: HK$593.8b

China Telecom Valuation

Is 728 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-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 728 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 728 (HK$4.44) is trading below our estimate of fair value (HK$12.03)

Significantly Below Fair Value: 728 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for 728?

Key metric: As 728 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 728. This is calculated by dividing 728's market cap by their current earnings.
What is 728's PE Ratio?
PE Ratio11.6x
EarningsCN¥32.64b
Market CapCN¥552.80b

Price to Earnings Ratio vs Peers

How does 728's PE Ratio compare to its peers?

The above table shows the PE ratio for 728 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average12.2x
762 China Unicom (Hong Kong)
8.9x5.4%HK$196.7b
788 China Tower
15.4x24.2%HK$174.8b
6823 HKT Trust and HKT
14.2x5.1%HK$71.2b
941 China Mobile
10.3x2.8%HK$1.6t
728 China Telecom
11.6x7.1%HK$593.8b

Price-To-Earnings vs Peers: 728 is good value based on its Price-To-Earnings Ratio (11.6x) compared to the peer average (12.2x).


Price to Earnings Ratio vs Industry

How does 728's PE Ratio compare vs other companies in the Asian Telecom Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
728 11.6xIndustry Avg. 15.4xNo. of Companies20PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 728 is good value based on its Price-To-Earnings Ratio (11.6x) compared to the Asian Telecom industry average (15.1x).


Price to Earnings Ratio vs Fair Ratio

What is 728'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.

728 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11.6x
Fair PE Ratio11.6x

Price-To-Earnings vs Fair Ratio: 728 is good value based on its Price-To-Earnings Ratio (11.6x) compared to the estimated Fair Price-To-Earnings Ratio (11.6x).


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 728 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentHK$4.44
HK$5.66
+27.5%
15.0%HK$8.62HK$4.91n/a15
Nov ’25HK$4.46
HK$5.74
+28.7%
15.0%HK$8.75HK$4.98n/a15
Oct ’25HK$4.46
HK$5.80
+30.1%
15.0%HK$8.85HK$5.06n/a15
Sep ’25HK$4.75
HK$5.74
+20.9%
14.9%HK$8.75HK$5.00n/a15
Aug ’25HK$4.62
HK$5.57
+20.7%
16.3%HK$8.73HK$4.68n/a15
Jul ’25HK$4.63
HK$5.41
+16.9%
16.7%HK$8.69HK$4.67n/a16
Jun ’25HK$4.48
HK$5.43
+21.1%
16.9%HK$8.75HK$4.70n/a16
May ’25HK$4.32
HK$5.42
+25.4%
16.9%HK$8.74HK$4.69n/a16
Apr ’25HK$4.19
HK$5.42
+29.3%
16.5%HK$8.66HK$4.69n/a16
Mar ’25HK$4.15
HK$5.37
+29.4%
17.7%HK$8.71HK$4.37n/a16
Feb ’25HK$3.99
HK$5.45
+36.6%
17.2%HK$8.77HK$4.40n/a19
Jan ’25HK$3.74
HK$5.48
+46.6%
17.7%HK$8.98HK$4.63n/a19
Dec ’24HK$3.64
HK$5.38
+47.7%
17.6%HK$8.79HK$4.53n/a19
Nov ’24HK$3.40
HK$5.30
+56.0%
17.6%HK$8.73HK$4.49HK$4.4620
Oct ’24HK$3.92
HK$5.31
+35.5%
17.2%HK$8.75HK$4.50HK$4.4620
Sep ’24HK$3.75
HK$5.28
+40.7%
17.2%HK$8.62HK$4.16HK$4.7521
Aug ’24HK$3.98
HK$5.25
+31.9%
16.5%HK$8.70HK$4.20HK$4.6221
Jul ’24HK$3.75
HK$5.28
+40.7%
16.7%HK$8.66HK$4.00HK$4.6320
Jun ’24HK$3.91
HK$5.40
+38.0%
15.6%HK$8.54HK$4.13HK$4.4820
May ’24HK$4.35
HK$5.42
+24.6%
15.9%HK$8.69HK$4.20HK$4.3221
Apr ’24HK$4.17
HK$5.31
+27.4%
12.0%HK$7.32HK$4.24HK$4.1921
Mar ’24HK$4.18
HK$4.46
+6.7%
17.7%HK$7.24HK$3.40HK$4.1522
Feb ’24HK$3.87
HK$4.41
+13.8%
18.1%HK$7.40HK$3.47HK$3.9921
Jan ’24HK$3.07
HK$4.18
+36.2%
21.2%HK$7.43HK$2.99HK$3.7421
Dec ’23HK$3.12
HK$4.06
+30.0%
21.4%HK$7.29HK$2.92HK$3.6421
Nov ’23HK$2.76
HK$3.96
+43.6%
22.3%HK$7.38HK$2.87HK$3.4022

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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