MTN Group Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MTN (ZAR87.9) is trading below our estimate of fair value (ZAR244.4)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

MTN 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/Revenue1.4x
Enterprise Value/EBITDA4.1x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MTN's PS Ratio compare to its peers?

The above table shows the PS ratio for MTN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.9x
VOD Vodacom Group
1.4x5.0%R207.1b
A017670 SK Telecom
0.7x1.9%₩11.9t
4904 Far EasTone Telecommunications
3.1x5.1%NT$314.8b
7020 Etihad Etisalat
2.2x4.4%ر.س39.0b
MTN MTN Group
0.8x7.5%R158.8b

Price-To-Sales vs Peers: MTN is good value based on its Price-To-Sales Ratio (0.8x) compared to the peer average (1.9x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.4%
n/an/an/a
No more companies

Price-To-Sales vs Industry: MTN is good value based on its Price-To-Sales Ratio (0.8x) compared to the Global Wireless Telecom industry average (1.4x).


Price to Sales Ratio vs Fair Ratio

What is MTN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MTN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.8x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: MTN is good value based on its Price-To-Sales Ratio (0.8x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


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 MTN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentR87.90
R103.45
+17.7%
17.8%R130.00R73.00n/a11
Oct ’25R89.76
R107.18
+19.4%
14.8%R130.00R77.00n/a11
Sep ’25R88.86
R106.64
+20.0%
17.2%R140.00R77.00n/a11
Aug ’25R77.36
R106.17
+37.2%
16.6%R140.00R77.00n/a12
Jul ’25R85.43
R106.75
+25.0%
17.0%R140.00R80.00n/a12
Jun ’25R82.06
R106.75
+30.1%
17.0%R140.00R80.00n/a12
May ’25R90.58
R106.75
+17.9%
15.2%R130.00R80.00n/a12
Apr ’25R93.74
R110.75
+18.1%
15.4%R130.00R80.00n/a12
Mar ’25R84.06
R126.09
+50.0%
26.6%R200.00R80.00n/a11
Feb ’25R95.79
R139.20
+45.3%
19.7%R200.00R114.00n/a10
Jan ’25R115.50
R143.60
+24.3%
18.1%R200.00R103.00n/a10
Dec ’24R103.36
R142.60
+38.0%
18.8%R200.00R103.00n/a10
Nov ’24R92.98
R143.60
+54.4%
18.6%R200.00R103.00n/a10
Oct ’24R112.85
R160.67
+42.4%
23.7%R250.00R114.00R89.769
Sep ’24R122.53
R160.78
+31.2%
23.7%R250.00R114.00R88.869
Aug ’24R140.24
R164.00
+16.9%
22.7%R250.00R114.00R77.3610
Jul ’24R138.15
R167.80
+21.5%
21.4%R250.00R114.00R85.4310
Jun ’24R120.91
R169.80
+40.4%
21.7%R250.00R114.00R82.0610
May ’24R128.32
R175.44
+36.7%
20.1%R250.00R121.00R90.589
Apr ’24R127.47
R176.56
+38.5%
20.0%R250.00R121.00R93.749
Mar ’24R145.09
R178.30
+22.9%
18.4%R250.00R121.00R84.0610
Feb ’24R143.80
R180.30
+25.4%
18.6%R250.00R121.00R95.7910
Jan ’24R127.30
R183.80
+44.4%
20.1%R250.00R121.00R115.5010
Dec ’23R132.03
R183.80
+39.2%
20.1%R250.00R121.00R103.3610
Nov ’23R130.72
R189.63
+45.1%
20.4%R250.00R121.00R92.988
Oct ’23R119.88
R189.63
+58.2%
20.4%R250.00R121.00R112.858

Analyst Forecast: Target price is less than 20% higher than the current share price.


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