Millicom (NasdaqGS:TIGO) Valuation in Focus After Strategic Latin America Pivot and Colombian Merger Move

Simply Wall St

Millicom International Cellular (NasdaqGS:TIGO) just made a bold move that has investors watching closely. The company is sharpening its focus on Latin America after a full exit from its African operations, a shift that cuts currency risk and streamlines its regional playbook. With additional acquisitions in more stable, dollarized economies and a headline-making merger deal with ColTel in Colombia, supported by a major agreement with local utility EPM, Millicom is retooling itself in a way that could redefine its market position. At the same time, all eyes are on how regulatory reviews and the ongoing DOJ investigation might play into the success of this transformation.

This strategic pivot comes after a year of serious momentum for Millicom’s stock. Shares have jumped over 90% in the past twelve months and climbed nearly 38% in the past quarter alone. Earlier this year, the company’s renewed focus and asset moves caught attention, and now the ColTel and EPM deals mark a new chapter. Even with solid annual revenue growth, net income has faced pressure, underlining both the promise and the risk as management bets big on this regional overhaul.

After such a strong run, is Millicom’s growth story just getting started, or are buyers arriving late to the party with future gains already baked into the price?

Most Popular Narrative: 10% Overvalued

Based on the prevailing narrative, Millicom is seen as slightly overvalued compared to its current fair value estimate. This sentiment is driven by moderate growth prospects and financial headwinds weighing on the turnaround story.

Valuation for Millicom has caught up with regional peers, eroding its previous discount advantage. Growth outlook for Millicom is softer compared to other Latin American telecom companies.

Want to see what’s fueling this bold valuation call? The core of this narrative is a mix of recent blockbuster deals, aggressive buybacks, and tough assumptions about future profit margins and capital costs. Wondering which critical profit benchmarks and cash generation targets the analysts are betting on to support their price target? Explore the details that make or break this fair value calculation.

Result: Fair Value of $45.57 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, strong organic growth in key markets or successful M&A execution could meaningfully improve Millicom’s revenue and margin outlook, potentially reversing expectations.

Find out about the key risks to this Millicom International Cellular narrative.

Another Perspective: Discounted Cash Flow Tells a Different Story

While analysts using traditional valuation multiples believe Millicom is somewhat overvalued, our SWS DCF model offers a different perspective. This model suggests the company’s shares still have significant upside. Which view will ultimately prove more accurate for investors?

Look into how the SWS DCF model arrives at its fair value.

TIGO Discounted Cash Flow as at Sep 2025

Stay updated when valuation signals shift by adding Millicom International Cellular to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Millicom International Cellular Narrative

If you see things differently or want to dig deeper on your own terms, you can build your own Millicom story in just minutes. Do it your way

A great starting point for your Millicom International Cellular research is our analysis highlighting 3 key rewards and 4 important warning signs that could impact your investment decision.

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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.

Valuation is complex, but we're here to simplify it.

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