Telecard Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: TELE (PKR8.21) is trading below our estimate of fair value (PKR108.34)

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


Key Valuation Metric

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

Key metric: As TELE is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TELE. This is calculated by dividing TELE's market cap by their current revenue.
What is TELE's PS Ratio?
PS Ratio0.3x
SalesPK₨10.80b
Market CapPK₨2.78b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TELE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
WTL WorldCall Telecom
1.6xn/aPK₨7.3b
PAKD Pak Datacom
0.6xn/aPK₨895.6m
PTC Pakistan Telecommunication
0.5xn/aPK₨105.5b
GEMSPNL Supernet
0.2xn/aPK₨1.8b
TELE Telecard
0.3xn/aPK₨2.8b

Price-To-Sales vs Peers: TELE is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.7x).


Price to Sales Ratio vs Industry

How does TELE's PS Ratio compare vs other companies in the Asian Telecom Industry?

15 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.9x3.9%
TELE Telecard
0.3xn/aUS$10.00m
TELE 0.3xIndustry Avg. 1.9xNo. of Companies20PS01.63.24.86.48+
15 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.9x13.1%
TELE Telecard
0.3xn/aUS$10.00m
No more companies

Price-To-Sales vs Industry: TELE is good value based on its Price-To-Sales Ratio (0.3x) compared to the Asian Telecom industry average (1.8x).


Price to Sales Ratio vs Fair Ratio

What is TELE'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.

TELE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TELE'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.


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