We’ve recently updated our valuation analysis.

Safaricom Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SCOM key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.7x
Enterprise Value/EBITDA7.8x
PEG Ratio-6.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SCOM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.1x
MTSS Mobile TeleSystems
9.7x16.9%₽463.3b
7020 Etihad Etisalat
19.5x9.3%ر.س26.7b
4904 Far EasTone Telecommunications
24.3x9.9%NT$219.9b
MAXIS Maxis Berhad
25.6x8.8%RM31.5b
SCOM Safaricom
14.9x-2.1%KSh981.6b

Price-To-Earnings vs Peers: SCOM is good value based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (23.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a14.5%
n/an/an/a

Price-To-Earnings vs Industry: SCOM is good value based on its Price-To-Earnings Ratio (14.9x) compared to the Global Wireless Telecom industry average (14.9x)


Price to Earnings Ratio vs Fair Ratio

What is SCOM'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.

SCOM PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.9x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SCOM's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SCOM when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCOM (KES24.5) is trading above our estimate of fair value (KES8.42)

Significantly Below Fair Value: SCOM is trading above our estimate of fair value.


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 SCOM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentKSh24.50
KSh31.58
+28.9%
20.7%KSh43.60KSh24.50n/a6
Jan ’24KSh24.15
KSh34.57
+43.2%
15.7%KSh43.60KSh27.00n/a5
Dec ’23KSh24.50
KSh34.98
+42.8%
12.6%KSh43.60KSh27.00n/a8
Nov ’23KSh25.00
KSh34.29
+37.2%
16.9%KSh43.60KSh21.50n/a8
Oct ’23KSh24.95
KSh35.59
+42.7%
18.5%KSh46.00KSh21.50n/a9
Sep ’23KSh27.85
KSh35.59
+27.8%
18.5%KSh46.00KSh21.50n/a9
Aug ’23KSh29.15
KSh35.75
+22.7%
17.5%KSh46.00KSh21.50n/a10
Jul ’23KSh25.05
KSh36.85
+47.1%
17.9%KSh46.00KSh21.50n/a10
Jun ’23KSh26.00
KSh37.67
+44.9%
16.8%KSh46.00KSh23.00n/a11
May ’23KSh33.70
KSh39.66
+17.7%
11.2%KSh46.00KSh31.00n/a10
Apr ’23KSh34.50
KSh39.73
+15.2%
11.7%KSh46.00KSh31.00n/a9
Mar ’23KSh36.15
KSh38.95
+7.7%
11.2%KSh44.34KSh31.00n/a8
Feb ’23KSh37.50
KSh39.17
+4.4%
11.5%KSh44.34KSh31.00KSh24.008
Jan ’23KSh37.95
KSh38.60
+1.7%
12.1%KSh44.34KSh31.00KSh24.158
Dec ’22KSh37.90
KSh37.82
-0.2%
12.2%KSh44.34KSh31.00KSh24.5011
Nov ’22KSh41.95
KSh37.81
-9.9%
11.2%KSh44.00KSh31.00KSh25.0011
Oct ’22KSh43.20
KSh37.99
-12.1%
10.4%KSh44.00KSh31.00KSh24.9512
Sep ’22KSh42.60
KSh37.99
-10.8%
10.4%KSh44.00KSh31.00KSh27.8512
Aug ’22KSh41.95
KSh37.23
-11.3%
9.7%KSh44.00KSh31.00KSh29.1513
Jul ’22KSh42.00
KSh37.15
-11.5%
9.8%KSh44.00KSh31.00KSh25.0513
Jun ’22KSh40.85
KSh36.77
-10.0%
9.6%KSh42.99KSh31.00KSh26.0013
May ’22KSh40.35
KSh35.16
-12.9%
10.0%KSh42.99KSh30.25KSh33.7012
Apr ’22KSh37.05
KSh33.98
-8.3%
11.3%KSh42.99KSh30.00KSh34.5010
Mar ’22KSh38.70
KSh33.76
-12.8%
11.0%KSh42.99KSh30.00KSh36.1510
Feb ’22KSh35.15
KSh32.59
-7.3%
6.4%KSh36.15KSh30.00KSh37.5011

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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