Mobile TeleSystems Valuation

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

MTSS (RUB275.05) is trading below our estimate of [[fair value]] (RUB1047.89)

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: MTSS (RUB275.05) is trading below our estimate of fair value (RUB1047.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for MTSS. This is calculated by dividing MTSS's market cap by their current earnings.
What is MTSS's PE Ratio?
PE Ratio	9.7x
Earnings	₽47.52b
Market Cap	₽463.28b

MTSS 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	1.7x
Enterprise Value/EBITDA	5.6x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MTSS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	15.7x
AFKS Sistema Financial	25.2x	n/a	₽142.3b
RTKM Rostelecom	7.8x	25.3%	₽222.8b
MGTS Moscow City Telephone Network	9.3x	n/a	₽117.2b
TEL2 B Tele2	20.6x	7.5%	SEK 78.1b
MTSS Mobile TeleSystems	9.7x	16.9%	₽463.3b

Price-To-Earnings vs Peers: MTSS is good value based on its Price-To-Earnings Ratio (9.7x) compared to the peer average (15.9x).

Price to Earnings Ratio vs Industry

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

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: MTSS is good value based on its Price-To-Earnings Ratio (9.7x) compared to the Global Wireless Telecom industry average (16.9x).

Price to Earnings Ratio vs Fair Ratio

What is MTSS'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.

MTSS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	9.7x
Fair PE Ratio	14.2x

Price-To-Earnings vs Fair Ratio: MTSS is good value based on its Price-To-Earnings Ratio (9.7x) compared to the estimated Fair Price-To-Earnings Ratio (14.2x).

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.