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

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

Discounted Cash Flow
Simply Wall St
KSh14.53
Fair Value
22.5% overvalued intrinsic discount
7
Number of Analysts

Below Fair Value: SCOM (KES17.8) is trading above our estimate of fair value (KES14.53)

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


Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SCOM. This is calculated by dividing SCOM's market cap by their current earnings.
What is SCOM's PE Ratio?
PE Ratio12.5x
EarningsKSh56.94b
Market CapKSh713.16b

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.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average13.5x
GLO Globe Telecom
13.6x4.7%₱332.1b
11.1x16.4%R$35.8b
AXIATA Axiata Group Berhad
18.6x8.2%RM 21.1b
TEL PLDT
10.6x11.9%₱284.1b
SCOM Safaricom
12.5xn/aKSh713.2b

Price-To-Earnings vs Peers: SCOM is good value based on its Price-To-Earnings Ratio (12.5x) compared to the peer average (13.5x).


Price to Earnings Ratio vs Industry

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

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
SCOM 12.5xIndustry Avg. 16.6xNo. of Companies10PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SCOM is good value based on its Price-To-Earnings Ratio (12.5x) compared to the Global Wireless Telecom industry average (16.4x).


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 Ratio12.5x
Fair PE Ration/a

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


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
CurrentKSh17.80
KSh23.21
+30.4%
23.9%KSh32.00KSh16.60n/a7
Jan ’26KSh17.05
KSh22.80
+33.7%
23.2%KSh32.00KSh16.60n/a8
Dec ’25KSh15.00
KSh22.80
+52.0%
23.2%KSh32.00KSh16.60n/a8
Nov ’25KSh16.75
KSh24.11
+44.0%
23.1%KSh33.00KSh17.00n/a7
Oct ’25KSh15.00
KSh24.26
+61.7%
23.3%KSh33.00KSh17.00n/a7
Sep ’25KSh14.50
KSh24.47
+68.8%
22.4%KSh33.00KSh17.00n/a7
Aug ’25KSh15.35
KSh23.91
+55.8%
22.3%KSh33.00KSh17.00n/a8
Jul ’25KSh17.45
KSh23.88
+36.9%
19.1%KSh33.00KSh17.00n/a11
Jun ’25KSh17.90
KSh23.98
+34.0%
19.9%KSh33.00KSh17.00n/a10
May ’25KSh15.95
KSh21.61
+35.5%
11.1%KSh24.30KSh17.00n/a8
Apr ’25KSh17.75
KSh21.49
+21.1%
10.7%KSh24.30KSh17.00n/a9
Mar ’25KSh13.50
KSh21.49
+59.2%
10.7%KSh24.30KSh17.00n/a9
Feb ’25KSh13.50
KSh21.49
+59.2%
10.7%KSh24.30KSh17.00n/a9
Jan ’25KSh13.90
KSh21.87
+57.3%
11.6%KSh25.77KSh17.00KSh17.0510
Dec ’24KSh14.05
KSh23.29
+65.8%
23.9%KSh39.08KSh17.00KSh15.0011
Nov ’24KSh12.30
KSh24.06
+95.6%
26.0%KSh39.08KSh19.00KSh16.758
Oct ’24KSh14.60
KSh23.89
+63.6%
26.2%KSh39.08KSh17.00KSh15.008
Sep ’24KSh15.10
KSh24.66
+63.3%
26.0%KSh39.08KSh17.00KSh14.507
Aug ’24KSh17.35
KSh26.02
+50.0%
27.9%KSh39.08KSh17.00KSh15.358
Jul ’24KSh17.50
KSh26.02
+48.7%
27.9%KSh39.08KSh17.00KSh17.458
Jun ’24KSh16.60
KSh26.33
+58.6%
26.3%KSh39.08KSh19.50KSh17.908
May ’24KSh16.50
KSh27.06
+64.0%
20.6%KSh36.50KSh19.50KSh15.955
Apr ’24KSh18.10
KSh28.06
+55.0%
15.9%KSh36.50KSh24.30KSh17.755
Mar ’24KSh23.35
KSh31.58
+35.2%
20.7%KSh43.60KSh24.50KSh13.506
Feb ’24KSh24.00
KSh31.58
+31.6%
20.7%KSh43.60KSh24.50KSh13.506
Jan ’24KSh24.15
KSh34.57
+43.2%
15.7%KSh43.60KSh27.00KSh13.905
Analyst Price Target
Consensus Narrative from 7 Analysts
KSh23.21
Fair Value
23.3% undervalued intrinsic discount
7
Number of Analysts

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.


Discover undervalued companies

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/08 07:53
End of Day Share Price 2025/01/08 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Safaricom PLC is covered by 19 analysts. 5 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Linet MuriungiAbsa Bank Limited
Maureen KiriguaAfrican Alliance
null nullAIB-AXYS Africa Limited