MTN Group (MTN.JO)
Communications · JSE · South Africa
Fundamentals
Valuation and ratings
MTN Group trades at R234.00, which is 36% above the R150.00 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.
Our moat model scores it 65 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 20.7 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About MTN Group
MTN Group Limited, together with its subsidiaries, provides mobile telecommunications services in South Africa, Nigeria, South and East Africa, West and Central Africa, and the Middle East and North Africa. The company offers data, voice and SMS, interconnect, and roaming services; and sells mobile devices. It also provides digital and fintech services, such as value-added services, rich media services, insurance, airtime lending, in-store payments, remittances, prepaid services, and e-commerce services; and MTN Mobile Money fintech platform. In addition, the company offers managed network services, cloud, unified communications, internet of things, and security as a service; network as a services, including subsea cables, terrestrial and metro fibre, data centre and cable landing stations, and towers and radio access network assets; and marketplace solutions for government agencies, insurance firms, banking institutions, and SMEs. MTN Group Limited was incorporated in 1994 and is based in Johannesburg, South Africa.
MTN.JO passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is MTN Group (MTN.JO) undervalued?
Against our discounted cash flow estimate of R150.00, MTN.JO at R234.00 is 36% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is MTN.JO's P/E ratio?
MTN.JO trades at 20.7 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.