Singapore Telecommunications Limited

SGX:Z74 Stock Report

Market Cap: S$51.5b

Singapore Telecommunications Valuation

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

Valuation Score

2/6

Valuation Score 2/6

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

Below Fair Value: Z74 (SGD3.12) is trading below our estimate of fair value (SGD7.49)

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?

Key metric: As Z74 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for Z74. This is calculated by dividing Z74's market cap by their current revenue.
What is Z74's PS Ratio?
PS Ratio3.7x
SalesS$14.09b
Market CapS$51.51b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for Z74 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average2.8x
EAND Emirates Telecommunications Group Company PJSC
2.4x8.4%د.إ138.3b
SCMN Swisscom
2.3x0.4%CHF 25.8b
2412 Chunghwa Telecom
4.2x1.8%NT$954.2b
TLS Telstra Group
2x2.4%AU$45.9b
Z74 Singapore Telecommunications
3.7x2.6%S$51.5b

Price-To-Sales vs Peers: Z74 is expensive based on its Price-To-Sales Ratio (3.7x) compared to the peer average (2.8x).

Price to Sales Ratio vs Industry

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

15 CompaniesPrice / SalesEstimated GrowthMarket Cap
Z74 3.7xIndustry Avg. 1.8xNo. of Companies18PS01.63.24.86.48+
15 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: Z74 is expensive based on its Price-To-Sales Ratio (3.7x) compared to the Asian Telecom industry average (1.8x).

Price to Sales Ratio vs Fair Ratio

What is Z74'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.

Z74 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.7x
Fair PS Ratio2.9x

Price-To-Sales vs Fair Ratio: Z74 is expensive based on its Price-To-Sales Ratio (3.7x) compared to the estimated Fair Price-To-Sales Ratio (2.9x).

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$3.12
S$3.72
+19.2%
7.1%S$4.60S$3.37n/a17
Dec ’25S$3.10
S$3.71
+19.7%
7.3%S$4.60S$3.36n/a17
Nov ’25S$3.10
S$3.70
+19.3%
7.5%S$4.60S$3.36n/a17
Oct ’25S$3.23
S$3.55
+9.9%
11.1%S$4.60S$2.50n/a16
Sep ’25S$3.13
S$3.45
+10.4%
11.7%S$4.60S$2.50n/a17
Aug ’25S$2.95
S$3.43
+16.1%
11.9%S$4.60S$2.50n/a17
Jul ’25S$2.76
S$3.19
+15.6%
12.7%S$4.40S$2.50n/a17
Jun ’25S$2.48
S$3.17
+28.0%
12.8%S$4.40S$2.50n/a17
May ’25S$2.38
S$3.07
+28.9%
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$2.40S$3.1016
Nov ’24S$2.39
S$3.10
+29.6%
13.9%S$4.40S$2.52S$3.1017
Oct ’24S$2.42
S$3.08
+27.1%
14.1%S$4.40S$2.52S$3.2317
Sep ’24S$2.38
S$3.09
+29.7%
13.9%S$4.40S$2.52S$3.1318
Aug ’24S$2.64
S$3.14
+19.1%
12.7%S$4.40S$2.52S$2.9518
Jul ’24S$2.50
S$3.13
+25.1%
13.0%S$4.40S$2.52S$2.7617
Jun ’24S$2.50
S$3.14
+25.5%
12.7%S$4.40S$2.52S$2.4818
May ’24S$2.55
S$3.14
+23.1%
12.5%S$4.40S$2.62S$2.3818
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

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 06:18
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2024/03/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Singapore Telecommunications Limited is covered by 42 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Anand RamachandranBarclays
Choong Chen FoongBNP Paribas Securities (Asia)
Sukriti BansalBofA Global Research