Telkom SA SOC (TKG.JO)
Communications · JSE · South Africa
Fundamentals
Valuation and ratings
Telkom SA SOC trades at R59.23, which is 21% below the R71.70 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 50 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 8.0 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 Telkom SA SOC
Telkom SA SOC Ltd operates as an integrated communications and information technology (IT) services provider in South Africa, the United States, the United Kingdom, rest of Europe, and internationally. It operates through Openserve, Telkom Consumer, and BCX segments. The company offers mobile and fixed-line telecommunication services, including broadband, optical and carrier, business-to-business connectivity, interconnect-based services, broadband data, voice, content, and gaming solutions; and small and medium entity information, communication, and technology solutions, as well as business mobility, global telecommunication, CPE-related services, converged communication, managed application-centric data networking, managed local area networking, unified collaboration as a service, and internet and value-added services. It also provides IT, advertising, digital and social media advertising, e-commerce, and omni-channel services; and printed directory and international maritime services. In addition, the company rents network equipment, property, and vehicles; and offers insurance products and services. It serves residential, business, government, wholesale, and corporate customers. Telkom SA SOC Ltd was incorporated in 1991 and is headquartered in Centurion, South Africa.
TKG.JO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Telkom SA SOC (TKG.JO) undervalued?
Against our discounted cash flow estimate of R71.70, TKG.JO at R59.23 is 21% below 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 TKG.JO's P/E ratio?
TKG.JO trades at 8.0 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.
The full research page for TKG.JO, with financial statements, ownership detail, peer comparison and alerts, is free inside the app.
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.