Spark New Zealand Limited

NZSE:SPK Stock Report

Market Cap: NZ$5.4b

Spark New Zealand Valuation

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

Below Fair Value: SPK (NZ$2.92) is trading below our estimate of fair value (NZ$5.12)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SPK. This is calculated by dividing SPK's market cap by their current earnings.
What is SPK's PE Ratio?
PE Ratio17x
EarningsNZ$316.00m
Market CapNZ$5.38b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SPK vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
TBIG Tower Bersama Infrastructure
29.3x8.8%Rp47.2t
A032640 LG Uplus
8.3x8.0%₩4.4t
HT Hrvatski Telekom d.d
21.8x3.8%€3.1b
MTELEKOM Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság
8x8.4%Ft1.2t
SPK Spark New Zealand
17x4.6%NZ$5.4b

Price-To-Earnings vs Peers: SPK is expensive based on its Price-To-Earnings Ratio (17x) compared to the peer average (16.9x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SPK 17.0xIndustry Avg. 16.8xNo. of Companies35PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SPK is expensive based on its Price-To-Earnings Ratio (17x) compared to the Global Telecom industry average (16.8x).

Price to Earnings Ratio vs Fair Ratio

What is SPK'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.

SPK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SPK'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 SPK forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentNZ$2.92
NZ$3.63
+24.3%
18.0%NZ$4.55NZ$2.80n/a8
Dec ’25NZ$2.93
NZ$3.90
+33.3%
18.8%NZ$5.00NZ$2.80n/a8
Nov ’25NZ$2.88
NZ$4.00
+39.0%
21.0%NZ$5.30NZ$2.85n/a8
Oct ’25NZ$3.00
NZ$4.40
+46.5%
15.8%NZ$5.30NZ$2.95n/a8
Sep ’25NZ$3.59
NZ$4.63
+28.9%
9.1%NZ$5.30NZ$4.20n/a8
Aug ’25NZ$4.41
NZ$4.94
+12.1%
7.1%NZ$5.50NZ$4.50n/a8
Jul ’25NZ$4.09
NZ$4.94
+20.7%
5.9%NZ$5.50NZ$4.65n/a8
Jun ’25NZ$4.18
NZ$4.98
+19.3%
5.5%NZ$5.50NZ$4.65n/a8
May ’25NZ$4.73
NZ$5.23
+10.6%
4.7%NZ$5.65NZ$4.90n/a8
Apr ’25NZ$4.77
NZ$5.23
+9.8%
4.7%NZ$5.65NZ$4.90n/a8
Mar ’25NZ$5.04
NZ$5.23
+3.9%
4.7%NZ$5.65NZ$4.90n/a8
Feb ’25NZ$5.30
NZ$5.17
-2.5%
5.2%NZ$5.70NZ$4.90n/a8
Jan ’25NZ$5.18
NZ$5.17
-0.2%
5.2%NZ$5.70NZ$4.90n/a8
Dec ’24NZ$5.10
NZ$5.17
+1.3%
5.2%NZ$5.70NZ$4.90NZ$2.938
Nov ’24NZ$5.02
NZ$5.17
+2.9%
5.2%NZ$5.70NZ$4.90NZ$2.888
Oct ’24NZ$4.81
NZ$5.22
+8.6%
5.2%NZ$5.70NZ$4.90NZ$3.008
Sep ’24NZ$5.04
NZ$5.22
+3.7%
5.2%NZ$5.70NZ$4.90NZ$3.598
Aug ’24NZ$5.15
NZ$5.19
+0.7%
6.7%NZ$5.80NZ$4.70NZ$4.418
Jul ’24NZ$5.09
NZ$5.17
+1.6%
6.9%NZ$5.80NZ$4.70NZ$4.098
Jun ’24NZ$5.28
NZ$5.18
-1.9%
7.0%NZ$5.80NZ$4.70NZ$4.188
May ’24NZ$5.20
NZ$5.14
-1.0%
6.0%NZ$5.50NZ$4.70NZ$4.738
Apr ’24NZ$5.06
NZ$5.15
+1.7%
6.0%NZ$5.50NZ$4.70NZ$4.778
Mar ’24NZ$5.01
NZ$5.13
+2.4%
5.7%NZ$5.50NZ$4.70NZ$5.049
Feb ’24NZ$5.28
NZ$5.25
-0.5%
5.5%NZ$5.60NZ$4.70NZ$5.308
Jan ’24NZ$5.40
NZ$5.20
-3.7%
6.8%NZ$5.60NZ$4.60NZ$5.188
Dec ’23NZ$5.19
NZ$5.21
+0.3%
6.8%NZ$5.60NZ$4.60NZ$5.108

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/31 02:28
End of Day Share Price 2024/12/31 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

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

Spark New Zealand Limited is covered by 18 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ware KuoBofA Global Research
Andrew ScottCGS International
Piyush ChoudharyCGS International