Saudi Telecom Valuation

Q: What is the Fair Price of 7010 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

7010 (SAR39.8) is trading below our estimate of [[fair value]] (SAR53.53)

Is 7010 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

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 7010 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 7010 (SAR39.8) is trading below our estimate of fair value (SAR53.53)

Significantly Below Fair Value: 7010 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 7010?

Key metric: As 7010 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 7010. This is calculated by dividing 7010's market cap by their current earnings.
What is 7010's PE Ratio?
PE Ratio	14.9x
Earnings	ر.س13.30b
Market Cap	ر.س197.73b

7010 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	2.5x
Enterprise Value/EBITDA	8.6x
PEG Ratio	2.3x

Price to Earnings Ratio vs Peers

How does 7010's PE Ratio compare to its peers?

The above table shows the PE ratio for 7010 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	14.9x
7040 Etihad Atheeb Telecommunication	19.5x	n/a	ر.س3.9b
7020 Etihad Etisalat	14.7x	8.4%	ر.س41.7b
EAND Emirates Telecommunications Group Company PJSC	13.8x	6.6%	د.إ151.0b
728 China Telecom	11.7x	7.1%	HK$607.6b
7010 Saudi Telecom	14.9x	6.5%	ر.س197.7b

Price-To-Earnings vs Peers: 7010 is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the peer average (14.9x).

Price to Earnings Ratio vs Industry

How does 7010's PE Ratio compare vs other companies in the Asian Telecom Industry?

1 Company	Price / Earnings	Estimated Growth	Market Cap

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: 7010 is expensive based on its Price-To-Earnings Ratio (14.9x) compared to the Asian Telecom industry average (14.9x).

Price to Earnings Ratio vs Fair Ratio

What is 7010'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.

7010 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14.9x
Fair PE Ratio	22.4x

Price-To-Earnings vs Fair Ratio: 7010 is good value based on its Price-To-Earnings Ratio (14.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.4x).

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 7010 forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	ر.س39.80	ر.س44.82 +12.6%	4.3%	ر.س48.40	ر.س42.00	n/a	16
Nov ’25	ر.س42.15	ر.س44.76 +6.2%	4.5%	ر.س48.40	ر.س42.00	n/a	16
Oct ’25	ر.س43.85	ر.س44.45 +1.4%	5.3%	ر.س48.40	ر.س40.00	n/a	16
Sep ’25	ر.س43.30	ر.س44.42 +2.6%	5.3%	ر.س48.40	ر.س40.00	n/a	16
Aug ’25	ر.س38.35	ر.س44.16 +15.2%	5.2%	ر.س48.40	ر.س40.00	n/a	17
Jul ’25	ر.س38.00	ر.س44.06 +15.9%	5.5%	ر.س48.40	ر.س40.00	n/a	17
Jun ’25	ر.س36.00	ر.س44.51 +23.6%	5.4%	ر.س48.40	ر.س40.00	n/a	17
May ’25	ر.س37.30	ر.س44.53 +19.4%	5.5%	ر.س48.40	ر.س40.00	n/a	17
Apr ’25	ر.س38.90	ر.س44.86 +15.3%	5.0%	ر.س48.40	ر.س40.50	n/a	16
Mar ’25	ر.س42.45	ر.س44.95 +5.9%	5.0%	ر.س48.40	ر.س40.60	n/a	16
Feb ’25	ر.س41.75	ر.س44.95 +7.7%	5.0%	ر.س48.40	ر.س40.60	n/a	16
Jan ’25	ر.س40.40	ر.س44.04 +9.0%	7.3%	ر.س48.40	ر.س36.00	n/a	16
Dec ’24	ر.س38.45	ر.س43.79 +13.9%	7.4%	ر.س48.40	ر.س36.00	n/a	16
Nov ’24	ر.س38.55	ر.س43.54 +12.9%	7.7%	ر.س48.40	ر.س36.00	ر.س42.15	14
Oct ’24	ر.س37.55	ر.س44.57 +18.7%	9.0%	ر.س50.00	ر.س36.00	ر.س43.85	13
Sep ’24	ر.س39.80	ر.س44.52 +11.9%	9.5%	ر.س50.00	ر.س36.00	ر.س43.30	13
Aug ’24	ر.س41.90	ر.س45.46 +8.5%	9.9%	ر.س54.00	ر.س38.40	ر.س38.35	13
Jul ’24	n/a	ر.س45.65 0%	9.9%	ر.س54.00	ر.س38.40	ر.س38.00	13
Jun ’24	ر.س42.25	ر.س45.35 +7.3%	10.6%	ر.س54.00	ر.س38.40	ر.س36.00	13
May ’24	ر.س44.45	ر.س46.54 +4.7%	11.8%	ر.س56.00	ر.س38.40	ر.س37.30	13
Apr ’24	ر.س40.05	ر.س46.14 +15.2%	11.8%	ر.س56.00	ر.س38.40	ر.س38.90	14
Mar ’24	ر.س35.70	ر.س46.17 +29.3%	12.6%	ر.س54.00	ر.س34.00	ر.س42.45	15
Feb ’24	ر.س37.00	ر.س46.29 +25.1%	11.9%	ر.س54.00	ر.س34.00	ر.س41.75	15
Jan ’24	ر.س37.20	ر.س46.38 +24.7%	12.0%	ر.س54.00	ر.س34.00	ر.س40.40	15
Dec ’23	ر.س37.50	ر.س47.84 +27.6%	10.4%	ر.س54.00	ر.س35.50	ر.س38.45	14
Nov ’23	ر.س40.20	ر.س48.01 +19.4%	10.6%	ر.س54.00	ر.س35.50	ر.س38.55	14

Analyst Forecast: Target price is less than 20% higher than the current share price.