Telekom Networks Malawi Valuation

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

TNM (MWK26.01) is trading above our estimate of [[fair value]] (MWK18.38)

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

Valuation Score

1/6

Valuation Score 1/6

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

Below Fair Value: TNM (MWK26.01) is trading above our estimate of fair value (MWK18.38)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TNM. This is calculated by dividing TNM's market cap by their current revenue.
What is TNM's PS Ratio?
PS Ratio	2.1x
Sales	MK 121.82b
Market Cap	MK 261.45b

TNM 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/Revenue	2.3x
Enterprise Value/EBITDA	9.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TNM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	4x
AIRTEL Airtel Malawi	3.9x	n/a	MK 870.2b
3773 Yinsheng Digifavor	9.5x	n/a	HK$1.2b
5135 Air-U	1.9x	n/a	JP¥21.6b
ATEL Airtel Networks Zambia	0.7x	n/a	K4.5b
TNM Telekom Networks Malawi	2.1x	n/a	MK 261.5b

Price-To-Sales vs Peers: TNM is good value based on its Price-To-Sales Ratio (2.1x) compared to the peer average (4.7x).

Price to Sales Ratio vs Industry

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

9 Companies	Price / Sales	Estimated Growth	Market Cap

9 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: TNM is expensive based on its Price-To-Sales Ratio (2.1x) compared to the Global Wireless Telecom industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

What is TNM'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.

TNM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.1x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TNM's Price-To-Sales 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?

Analyst Forecast: Insufficient data to show price forecast.