Assessing Singtel’s Value After a 49.8% Surge and Regional Partnerships in 2025

• Thinking about whether Singapore Telecommunications is a bargain or just riding the wave? You are not alone; this stock attracts attention from both value seekers and growth hunters.
• The price has been on a strong run lately, jumping 8.9% in the past week and adding up to an impressive 49.8% gain so far this year.
• Recent headlines highlight the company's aggressive network investments and renewed regional partnerships. Both of these factors have contributed to heightened investor confidence. Along with government pushes for digital infrastructure, these developments are adding real momentum and context to the recent surge in the share price.
• Sizing up the fundamentals, Singapore Telecommunications notched a value score of 5 out of 6 on our valuation checks, making it one of the more compelling names in the sector right now. We will walk through what this means with different valuation approaches shortly, and stay tuned for a perspective at the end that could give you far more insight than the usual price targets.

Singapore Telecommunications delivered 50.3% returns over the last year. See how this stacks up to the rest of the Telecom industry.

Approach 1: Singapore Telecommunications Discounted Cash Flow (DCF) Analysis

The Discounted Cash Flow (DCF) model estimates a company's intrinsic value by projecting its future cash flows and then discounting them back to present value. For Singapore Telecommunications, this involves analyzing expected Free Cash Flow (FCF) over time and adjusting these projections to account for the time value of money.

Based on the latest figures, Singapore Telecommunications generated Free Cash Flow of approximately SGD 1.66 billion over the last twelve months. Analysts expect this to rise steadily, with projected FCF reaching around SGD 4.22 billion by 2029. While detailed analyst estimates extend for five years, projections beyond that are carefully extrapolated to capture long-term expectations.

Using the 2 Stage Free Cash Flow to Equity model, the DCF analysis determines an intrinsic value per share of SGD 6.51. This is compared to the current share price, revealing a notable discounted valuation. The calculation suggests that the stock is trading at a 28.9% discount to its intrinsic value.

In summary, the DCF model indicates that Singapore Telecommunications may be undervalued at current levels. Investors focused on fundamentals may find an appealing margin of safety supporting the recent rally.

Result: UNDERVALUED

Our Discounted Cash Flow (DCF) analysis suggests Singapore Telecommunications is undervalued by 28.9%. Track this in your watchlist or portfolio, or discover 876 more undervalued stocks based on cash flows.

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

Approach 2: Singapore Telecommunications Price vs Earnings

The Price-to-Earnings (PE) ratio is a widely used metric for valuing profitable companies, as it measures how much investors are willing to pay for each dollar of earnings. For businesses like Singapore Telecommunications with a steady profit profile, the PE ratio provides a straightforward way to compare value across the telecom sector.

Generally, companies with strong growth prospects or lower risk profiles tend to justify higher PE ratios, while slower-growth or riskier firms often trade at a discount. This is why understanding the context, such as future earnings growth and market sentiment, is important when considering what PE is “fair.”

Singapore Telecommunications currently trades at a PE ratio of 12.3x. This is noticeably lower than both the industry average of 16.0x and the peer group average of 21.5x. This suggests the stock may be trading at a relative discount based on conventional benchmarks.

However, Simply Wall St's proprietary “Fair Ratio” goes a step further by calculating what the PE ratio should be, considering the company’s growth trajectory, profit margins, market cap, industry, and risk profile. For Singapore Telecommunications, the Fair Ratio comes in at 20.0x. This is a more tailored measure and often more informative than generic industry or peer averages, as it takes into account the unique characteristics of the business that can affect valuation.

Comparing the current PE to this Fair Ratio, Singapore Telecommunications’ shares look undervalued by this metric, trading significantly below what would reasonably be expected for a company with its attributes.

Result: UNDERVALUED

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1404 companies where insiders are betting big on explosive growth.

Upgrade Your Decision Making: Choose your Singapore Telecommunications Narrative

Earlier we mentioned that there is an even better way to understand valuation. Let's introduce you to Narratives. A Narrative is your story behind the numbers. It is where you set out your assumptions for fair value and future performance, linking how you see Singapore Telecommunications’ business evolving to precise financial forecasts. By connecting the company’s story to a dynamic forecast and a fair value calculation, Narratives make investing more personal, insightful, and actionable.

Narratives are easily accessible on Simply Wall St's Community page, used by millions of investors to share, refine, and visualize their perspectives. They help you decide when to buy or sell by showing how your fair value compares with the current market price. Plus, Narratives refresh automatically when new details, such as earnings releases or major news, are available, so your outlook always stays current.

For instance, one investor’s Narrative for Singapore Telecommunications might forecast robust international expansion and a fair value of SGD 8.20 per share, while another could see competitive risks ahead and estimate a fair value of only SGD 4.75. This flexibility empowers you to invest with conviction based on your own analysis and updated information, making the whole process smarter and more tailored to your view.

Do you think there's more to the story for Singapore Telecommunications? Head over to our Community to see what others are saying!

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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