Singapore Telecommunications Limited

SGX:Z74 Stock Report

Market Cap: S$38.3b

Singapore Telecommunications Valuation

Is Z74 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • 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 Z74 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Z74 (SGD2.34) is trading below our estimate of fair value (SGD6.79)

Significantly Below Fair Value: Z74 is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for Z74?

Other financial metrics that can be useful for relative valuation.

Z74 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/Revenue3.3x
Enterprise Value/EBITDA14.9x
PEG Ratio-3x

Price to Earnings Ratio vs Peers

How does Z74's PE Ratio compare to its peers?

The above table shows the PE ratio for Z74 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.1x
SCMN Swisscom
15.6x-0.3%CHF26.6b
ORA Orange
12.4x9.4%€28.1b
TLS Telstra Group
20.9x7.0%AU$42.5b
BCE BCE
19.5x10.0%CA$40.6b
Z74 Singapore Telecommunications
12.4x-4.1%S$38.3b

Price-To-Earnings vs Peers: Z74 is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (17.1x).


Price to Earnings Ratio vs Industry

How does Z74's PE Ratio compare vs other companies in the Asian Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a9.3%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: Z74 is good value based on its Price-To-Earnings Ratio (12.4x) compared to the Asian Telecom industry average (15x).


Price to Earnings Ratio vs Fair Ratio

What is Z74'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.

Z74 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio18.7x

Price-To-Earnings vs Fair Ratio: Z74 is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.7x).


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 Z74 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentS$2.34
S$3.08
+31.7%
13.2%S$4.40S$2.40n/a17
Apr ’25S$2.54
S$3.06
+20.4%
13.8%S$4.40S$2.40n/a17
Mar ’25S$2.34
S$3.07
+31.0%
14.1%S$4.40S$2.40n/a16
Feb ’25S$2.41
S$3.08
+27.9%
14.1%S$4.40S$2.40n/a16
Jan ’25S$2.47
S$3.08
+24.7%
14.1%S$4.40S$2.40n/a16
Dec ’24S$2.30
S$3.08
+34.0%
14.1%S$4.40S$2.40n/a16
Nov ’24S$2.39
S$3.10
+29.6%
13.9%S$4.40S$2.52n/a17
Oct ’24S$2.42
S$3.08
+27.1%
14.1%S$4.40S$2.52n/a17
Sep ’24S$2.38
S$3.09
+29.7%
13.9%S$4.40S$2.52n/a18
Aug ’24S$2.64
S$3.14
+19.1%
12.7%S$4.40S$2.52n/a18
Jul ’24S$2.50
S$3.13
+25.1%
13.0%S$4.40S$2.52n/a17
Jun ’24S$2.50
S$3.14
+25.5%
12.7%S$4.40S$2.52n/a18
May ’24S$2.55
S$3.14
+23.1%
12.5%S$4.40S$2.62n/a18
Apr ’24S$2.46
S$3.14
+27.6%
12.5%S$4.40S$2.62S$2.5418
Mar ’24S$2.40
S$3.13
+30.4%
12.6%S$4.40S$2.62S$2.3418
Feb ’24S$2.55
S$3.19
+25.1%
10.9%S$4.40S$2.72S$2.4118
Jan ’24S$2.57
S$3.19
+24.2%
10.9%S$4.40S$2.72S$2.4718
Dec ’23S$2.68
S$3.19
+19.1%
10.9%S$4.40S$2.72S$2.3018
Nov ’23S$2.52
S$3.23
+28.2%
11.7%S$4.40S$2.80S$2.3917
Oct ’23S$2.66
S$3.23
+21.3%
11.4%S$4.40S$2.80S$2.4218
Sep ’23S$2.63
S$3.22
+22.6%
11.3%S$4.40S$2.80S$2.3818
Aug ’23S$2.64
S$3.22
+22.1%
12.2%S$4.50S$2.70S$2.6418
Jul ’23S$2.55
S$3.21
+26.0%
12.2%S$4.50S$2.70S$2.5018
Jun ’23S$2.60
S$3.16
+21.6%
12.2%S$4.50S$2.70S$2.5018
May ’23S$2.77
S$3.14
+13.3%
12.2%S$4.50S$2.74S$2.5519
Apr ’23S$2.65
S$3.14
+18.5%
12.2%S$4.50S$2.74S$2.4619

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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