Spark New Zealand Limited

OTCPK:NZTC.F Stock Report

Market Cap: US$3.1b

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.

Discounted Cash Flow
Simply Wall St
US$2.78
Fair Value
42.5% undervalued intrinsic discount
8
Number of Analysts

Below Fair Value: NZTC.F ($1.6) is trading below our estimate of fair value ($2.78)

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 Ratio17.5x
EarningsNZ$316.00m
Market CapNZ$5.53b

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 Average20x
IDT IDT
16.4xn/aUS$1.2b
LICT LICT
19xn/aUS$233.6m
IRDM Iridium Communications
28x11.0%US$3.2b
VZ Verizon Communications
16.7x14.4%US$163.2b
NZTC.F Spark New Zealand
17.5x4.4%US$5.5b

Price-To-Earnings vs Peers: NZTC.F is good value based on its Price-To-Earnings Ratio (17.5x) compared to the peer average (20x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NZTC.F 17.5xIndustry Avg. 16.4xNo. of Companies30PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NZTC.F is expensive based on its Price-To-Earnings Ratio (17.5x) compared to the Global Telecom industry average (16.4x).

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 Ratio17.5x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: NZTC.F is expensive based on its Price-To-Earnings Ratio (17.5x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).

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$1.60
US$2.04
+27.4%
18.0%US$2.55US$1.57n/a8
Jan ’26US$1.64
US$2.05
+25.3%
18.0%US$2.58US$1.59n/a8
Dec ’25US$1.70
US$2.35
+38.3%
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$2.92US$1.648
Dec ’24US$3.13
US$3.08
-1.5%
5.2%US$3.40US$2.92US$1.708
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
Analyst Price Target
Consensus Narrative from 8 Analysts
US$1.94
Fair Value
17.5% undervalued intrinsic discount
8
Number of Analysts

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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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/20 17:34
End of Day Share Price 2025/01/17 00:00
Earnings2024/06/30
Annual Earnings2024/06/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Spark New Zealand Limited is covered by 18 analysts. 8 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ware KuoBofA Global Research
Andrew ScottCGS International
Piyush ChoudharyCGS International