Spok Holdings Valuation

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

SPOK ($16.22) is trading below our estimate of [[fair value]] ($31.89)

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

Below Fair Value: SPOK ($16.22) is trading below our estimate of fair value ($31.89)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for SPOK. This is calculated by dividing SPOK's market cap by their current earnings.
What is SPOK's PE Ratio?
PE Ratio	22.4x
Earnings	US$14.69m
Market Cap	US$325.37m

SPOK 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	2.2x
Enterprise Value/EBITDA	12.9x
PEG Ratio	3x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for SPOK 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	16.2x
GOGO Gogo	18.1x	19.3%	US$1.0b
UCL uCloudlink Group	10.9x	n/a	US$46.9m
VEON VEON	7.2x	n/a	US$2.2b
TIGO Millicom International Cellular	28.7x	27.9%	US$4.5b
SPOK Spok Holdings	22.4x	7.4%	US$325.4m

Price-To-Earnings vs Peers: SPOK is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the peer average (16.2x).

Price to Earnings Ratio vs Industry

How does SPOK'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: SPOK is expensive based on its Price-To-Earnings Ratio (22.4x) compared to the Global Wireless Telecom industry average (16.9x).

Price to Earnings Ratio vs Fair Ratio

What is SPOK'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.

SPOK PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	22.4x
Fair PE Ratio	24.1x

Price-To-Earnings vs Fair Ratio: SPOK is good value based on its Price-To-Earnings Ratio (22.4x) compared to the estimated Fair Price-To-Earnings Ratio (24.1x).

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.

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