Millicom (NasdaqGS:TIGO) Valuation in Focus Following Latin America Expansion and Profit Growth

Millicom International Cellular (NasdaqGS:TIGO) has stepped up its expansion in Latin America after acquiring Telefónica’s businesses in Uruguay and Ecuador. Early 2025 profit growth and a rising subscriber base are drawing fresh attention, even as revenue trends remain mixed.

See our latest analysis for Millicom International Cellular.

Millicom’s acquisition-fueled push into Latin America and a solid run of early 2025 profit growth have helped drive momentum. Its latest share price is up 85% year-to-date, and its three-year total shareholder return has soared past 360%. While shares dipped modestly following recent news, longer-term performance suggests that optimism around growth outweighs short-term revenue worries.

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With shares surging and profit momentum outpacing revenue growth, the real question now is whether Millicom is undervalued given recent success or if the market has already priced in its future growth potential.

Most Popular Narrative: 5.2% Undervalued

According to the most followed narrative, Millicom’s calculated fair value of $49.14 sits just above its last close price of $46.56. Observers see the share price reflecting increased confidence, but not fully pricing in every driver behind the target.

The market may be overestimating Millicom's future revenue growth by assuming that rapid postpaid penetration and ARPU uplift, driven by digital transformation and rising data demand in Latin America, will consistently materialize despite increasing price competition from low-cost entrants and aggressive offers (e.g., WOM, Telefonica). This could cap ARPU and slow subscriber acquisition, negatively impacting top-line growth.

Read the complete narrative.

Want to know which future financial levers analysts are betting on? The current fair value calculation hinges on assumptions about profit margins, revenue growth, and a future multiple typically reserved for sector standouts. Do you agree with how they are projecting Latin American expansion? Dive in to see what numbers are moving the goalposts in this narrative.

Result: Fair Value of $49.14 (UNDERVALUED)

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

However, surging postpaid growth and operational efficiency could invalidate overly cautious views on Millicom’s earnings and margin outlook if these trends continue.

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

Build Your Own Millicom International Cellular Narrative

If the current story does not quite match your take or you’d rather chart your own course, you can craft a fresh perspective in just a few 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.

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