We’ve recently updated our valuation analysis.

Lumen Technologies Valuation

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

[object Object] Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

LUMN 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/Revenue1.7x
Enterprise Value/EBITDA4.5x
PEG Ratio-0.09x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for LUMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average42.1x
LBTY.A Liberty Global
1.5x-60.3%US$9.2b
CCOI Cogent Communications Holdings
117.7x38.6%US$2.7b
SATS EchoStar
27.6x-58.6%US$1.4b
SIFY Sify Technologies
21.5x30.3%US$252.2m
LUMN Lumen Technologies
2.8x-30.9%US$5.7b

Price-To-Earnings vs Peers: LUMN is good value based on its Price-To-Earnings Ratio (2.8x) compared to the peer average (42.1x).


Price to Earnings Ratio vs Industry

How does LUMN's PE Ratio compare vs other companies in the Global Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a2.4%
n/an/an/a

Price-To-Earnings vs Industry: LUMN is good value based on its Price-To-Earnings Ratio (2.8x) compared to the Global Telecom industry average (17x)


Price to Earnings Ratio vs Fair Ratio

What is LUMN'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.

LUMN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio2.8x
Fair PE Ratio5.9x

Price-To-Earnings vs Fair Ratio: LUMN is good value based on its Price-To-Earnings Ratio (2.8x) compared to the estimated Fair Price-To-Earnings Ratio (5.9x).


Share Price vs Fair Value

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

Below Fair Value: LUMN ($5.51) is trading below our estimate of fair value ($7.06)

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


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 LUMN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$5.51
US$7.60
+37.9%
30.7%US$14.00US$5.00n/a10
Nov ’23US$7.43
US$9.32
+25.4%
31.2%US$16.00US$6.00n/a11
Oct ’23US$7.28
US$11.09
+52.3%
17.5%US$16.00US$8.00n/a11
Sep ’23US$10.07
US$11.18
+11.0%
17.5%US$16.00US$8.00n/a11
Aug ’23US$11.03
US$11.20
+1.5%
18.3%US$16.00US$8.00n/a10
Jul ’23US$11.14
US$11.20
+0.5%
18.3%US$16.00US$8.00n/a10
Jun ’23US$11.96
US$11.20
-6.4%
18.3%US$16.00US$8.00n/a10
May ’23US$10.06
US$11.20
+11.3%
18.8%US$16.00US$8.00n/a10
Apr ’23US$11.51
US$11.25
-2.3%
19.0%US$16.00US$8.00n/a10
Mar ’23US$10.42
US$11.25
+8.0%
19.0%US$16.00US$8.00n/a10
Feb ’23US$12.58
US$12.00
-4.6%
19.7%US$17.00US$8.00n/a10
Jan ’23US$12.55
US$12.00
-4.4%
19.7%US$17.00US$8.00n/a10
Dec ’22US$11.79
US$12.00
+1.8%
19.7%US$17.00US$8.00US$5.5910
Nov ’22US$12.07
US$11.71
-3.0%
18.5%US$16.10US$8.00US$7.4310
Oct ’22US$12.68
US$11.80
-6.9%
19.3%US$16.00US$8.00US$7.2810
Sep ’22US$12.13
US$11.80
-2.7%
19.3%US$16.00US$8.00US$10.0710
Aug ’22US$12.47
US$11.55
-7.3%
25.1%US$18.00US$7.00US$11.0311
Jul ’22US$13.74
US$11.34
-17.5%
25.3%US$18.00US$7.00US$11.1412
Jun ’22US$14.14
US$11.18
-21.0%
25.8%US$18.00US$7.00US$11.9612
May ’22US$12.83
US$10.78
-16.0%
26.4%US$18.00US$7.00US$10.0613
Apr ’22US$13.11
US$10.78
-17.8%
26.4%US$18.00US$7.00US$11.5113
Mar ’22US$12.51
US$10.85
-13.2%
27.1%US$18.00US$7.00US$10.4213
Feb ’22US$11.77
US$10.51
-10.7%
28.5%US$18.00US$7.00US$12.5813
Jan ’22US$9.75
US$10.51
+7.8%
28.5%US$18.00US$7.00US$12.5513
Dec ’21US$10.55
US$10.64
+0.8%
29.1%US$18.00US$7.00US$11.7913

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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