What Recent Digital Initiatives Mean for PLDT Share Value in 2025

If you’ve been considering what to do with your PLDT shares lately, you’re definitely not alone. The stock has had plenty of reasons to grab attention. It is up just over 1% this week and month, even as the broader telecom sector keeps investors guessing. However, zooming out tells a more uncertain story, with a nearly 14% drop year-to-date and a steeper 18% decline over the past twelve months. Still, those numbers aren’t telling the whole story when you look at what has been shaping sentiment in recent months.

Recent headlines hint at a company in transition. PLDT has been ramping up its digital initiatives and preparing to invest in new infrastructure projects, which has investors partly hopeful about its growth prospects despite a competitive market. These steps may explain some of the relative short-term stabilization in the stock price, as markets seem to be recalibrating risk in light of longer-term opportunities for the telecom giant.

Amid these shifts, it is worth pointing out that by traditional yardsticks, PLDT appears to be a bargain right now. The company’s valuation score comes in at a solid 6 out of 6, which means it is considered undervalued by every standard check we run. Of course, numbers are only part of the story. So, let’s break down how these valuations work, what they reveal, and, even more interestingly, why there might be an even better way to think about PLDT’s true worth at the end of this article.

Why PLDT is lagging behind its peers

Approach 1: PLDT Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company’s true value by forecasting its future cash flows and discounting them back to today’s value. This approach gives investors a clearer sense of what the business is really worth, regardless of current market swings.

For PLDT, the DCF analysis uses the 2 Stage Free Cash Flow to Equity model. Despite reporting a negative Free Cash Flow (FCF) of about ₱215.6 Million last year, projections point to a dramatic turnaround over the next decade. By 2027, analyst estimates see PLDT generating Free Cash Flow of roughly ₱63.6 Billion. Simply Wall St’s longer-term extrapolations push that figure even higher toward ₱111.9 Billion by 2035. Most of the projected growth comes after 2027 and is based on a gradual ramp-up rather than analyst optimism alone.

This long-term perspective yields an intrinsic value estimate of about ₱4,838 per share, suggesting the stock trades at a 77.0% discount to its fair value using this model. Based on these projections, PLDT stands out as deeply undervalued compared to its historical and industry standards.

Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for PLDT.

Our Discounted Cash Flow (DCF) analysis suggests PLDT is undervalued by 77.0%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

Approach 2: PLDT Price vs Earnings

The Price-to-Earnings (PE) ratio is a widely used valuation metric, especially relevant for profitable companies like PLDT. It allows investors to compare the current share price with the company’s actual earnings, making it easier to judge whether the stock offers good value based on what the business is generating now.

The right PE ratio depends a lot on expectations for future growth and the risks a company faces. Faster-growing or lower-risk firms usually command higher PE ratios, while slower-growing or riskier businesses tend to trade at lower ones.

PLDT’s current PE ratio is 7.5x. To put that in perspective, it sits well below the Wireless Telecom industry average of 18.3x and the peer group average of 15.9x. These numbers might make PLDT appear to be significantly undervalued relative to its peers and the broader sector.

This is where Simply Wall St’s Fair Ratio comes into play. It is a proprietary metric that refines traditional comparisons. The Fair Ratio for PLDT is 8.0x, representing the PE you would expect after weighing not just industry averages or peers, but also the company’s earnings growth, profit margins, size, and risk profile. This approach offers a richer, more customized picture of value than broad-brush benchmarks.

Comparing PLDT’s actual PE ratio of 7.5x with its Fair Ratio of 8.0x, the numbers are very close. This suggests the stock is valued about where it should be right now, factoring in both its fundamentals and the current environment.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your PLDT Narrative

Earlier we mentioned that there's an even better way to understand valuation, so let's introduce you to Narratives. A Narrative is your personalized story for a company like PLDT. It is your unique perspective that ties together why you think the business will perform a certain way, what you expect for future revenues, earnings and margins, and ultimately what you believe its shares should be worth.

Narratives connect the numbers with the underlying company story, linking your assumptions about PLDT’s business outlook straight to a forecast and fair value. This makes your investment logic much clearer. On Simply Wall St’s Community page, millions of investors use Narratives as a simple, accessible tool for guiding their decisions. You can see your view side-by-side with others, compare your fair value to the current share price, and monitor how it stacks up as new information, such as news or earnings, arrives.

For example, looking at PLDT today, some investors project aggressive digital expansion, margin improvements, and rising cash flow, setting a bullish Narrative with a fair value as high as ₱2070 per share. Others, more cautious about regulatory risks and competition, rate PLDT much lower, down to a bear-case of ₱1200 per share. Narratives let you decide where you stand and help you act confidently when price opportunities arise.

Do you think there's more to the story for PLDT? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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