Spark New Zealand Limited

OTCPK:NZTC.F Stock Report

Market Cap: US$3.2b

Spark New Zealand Valuation

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

Below Fair Value: NZTC.F ($1.76) is trading below our estimate of fair value ($3.09)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NZTC.F?

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

The above table shows the Price to Earnings ratio for NZTC.F. This is calculated by dividing NZTC.F's market cap by their current earnings.
What is NZTC.F's PE Ratio?
PE Ratio17.4x
EarningsNZ$316.00m
Market CapNZ$5.49b

Price to Earnings Ratio vs Peers

How does NZTC.F's PE Ratio compare to its peers?

The above table shows the PE ratio for NZTC.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.9x
IDT IDT
20xn/aUS$1.3b
LICT LICT
18.7xn/aUS$228.3m
IRDM Iridium Communications
29.8x7.9%US$3.3b
VZ Verizon Communications
18.9x15.6%US$181.6b
NZTC.F Spark New Zealand
17.4x4.6%US$5.5b

Price-To-Earnings vs Peers: NZTC.F is good value based on its Price-To-Earnings Ratio (17.4x) compared to the peer average (21.9x).

Price to Earnings Ratio vs Industry

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

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NZTC.F 17.4xIndustry Avg. 15.9xNo. of Companies26PE01224364860+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NZTC.F is expensive based on its Price-To-Earnings Ratio (17.4x) compared to the Global Telecom industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is NZTC.F'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.

NZTC.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NZTC.F's Price-To-Earnings Fair Ratio for valuation analysis.

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 NZTC.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$1.76
US$2.35
+33.6%
18.8%US$3.01US$1.69n/a8
Nov ’25US$1.75
US$2.39
+36.7%
21.0%US$3.17US$1.70n/a8
Oct ’25US$1.81
US$2.79
+54.3%
15.8%US$3.36US$1.87n/a8
Sep ’25US$2.21
US$2.87
+30.0%
9.1%US$3.29US$2.61n/a8
Aug ’25US$2.70
US$2.94
+8.9%
7.1%US$3.27US$2.68n/a8
Jul ’25US$2.50
US$3.00
+20.1%
5.9%US$3.35US$2.83n/a8
Jun ’25US$2.53
US$3.06
+20.8%
5.5%US$3.38US$2.85n/a8
May ’25US$2.78
US$3.20
+15.0%
4.7%US$3.45US$2.99n/a8
Apr ’25US$2.84
US$3.20
+12.5%
4.7%US$3.45US$2.99n/a8
Mar ’25US$2.99
US$3.20
+6.8%
4.7%US$3.45US$2.99n/a8
Feb ’25US$3.11
US$3.08
-0.9%
5.2%US$3.40US$2.92n/a8
Jan ’25US$3.31
US$3.08
-6.9%
5.2%US$3.40US$2.92n/a8
Dec ’24US$3.13
US$3.08
-1.5%
5.2%US$3.40US$2.92n/a8
Nov ’24US$2.90
US$3.12
+7.7%
5.2%US$3.45US$2.96US$1.758
Oct ’24US$2.84
US$3.10
+9.2%
5.2%US$3.38US$2.90US$1.818
Sep ’24US$2.90
US$3.10
+6.8%
5.2%US$3.38US$2.90US$2.218
Aug ’24US$3.14
US$3.19
+1.6%
6.7%US$3.57US$2.89US$2.708
Jul ’24US$3.10
US$3.14
+1.4%
6.9%US$3.52US$2.86US$2.508
Jun ’24US$3.19
US$3.22
+1.1%
7.0%US$3.61US$2.92US$2.538
May ’24US$3.21
US$3.20
-0.3%
6.0%US$3.42US$2.92US$2.788
Apr ’24US$3.01
US$3.22
+6.9%
6.0%US$3.44US$2.94US$2.848
Mar ’24n/a
US$3.20
0%
5.7%US$3.43US$2.93US$2.999
Feb ’24US$3.35
US$3.41
+1.7%
5.5%US$3.63US$3.05US$3.118
Jan ’24US$3.41
US$3.32
-2.6%
6.8%US$3.58US$2.94US$3.318
Dec ’23US$3.24
US$3.14
-3.2%
6.8%US$3.37US$2.77US$3.138
Nov ’23US$3.00
US$3.20
+6.8%
7.9%US$3.60US$2.80US$2.908

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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