Singtel (Z74.SI)
Communications · SGX · Singapore
Fundamentals
Valuation and ratings
Singtel trades at S$4.40, which is 34% above the S$2.89 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 67 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 12.9 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 Singtel
Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, and internationally. It operates through Optus, Singtel Singapore, NCS, and Digital InfraCo segments. The company provides mobile, equipment sales, fixed voice and data, satellite, ICT and managed services; pay television, content and digital services, and ICT services and sells equipments; and technology services to clients through its Gov+, Enterprise, and Telco+ groups. It also offers regional data center services under Nxera; satellite carrier services; and Paragon, a digital acceleration platform for 5G multi-access edge compute and cloud orchestration, as well as AI Cloud Service through RE:AI. In addition, the company offers services comprising insurance, my Singtel app, my smart network, GXS bank, dash, Singtel paylater, and telephony services. The company was incorporated in 1992 and is headquartered in Singapore.
Z74.SI 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 Singtel (Z74.SI) undervalued?
Against our discounted cash flow estimate of S$2.89, Z74.SI at S$4.40 is 34% 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 Z74.SI's P/E ratio?
Z74.SI trades at 12.9 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.