T

Telkom SA SOC Ltd
JSE:TKG

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Telkom SA SOC Ltd
JSE:TKG
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Price: 6 378 Zac 1.05% Market Closed
Market Cap: 32.6B ZAR

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Mar 7, 2026.

Estimated DCF Value of one TKG stock is 7 979.2 Zac. Compared to the current market price of 6 378 Zac, the stock is Undervalued by 20%.

TKG DCF Value
Base Case
7 979.2 Zac
Undervaluation 20%
DCF Value
Price
T
Worst Case
Base Case
Best Case
7 979.2
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 7 979.2 Zac

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 19.4B ZAR. The present value of the terminal value is 25.5B ZAR. The total present value equals 44.9B ZAR.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
Hide DCF Settings
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 44.9B ZAR
+ Cash & Equivalents 5.7B ZAR
+ Investments 692m ZAR
Firm Value 51.3B ZAR
- Debt 10.5B ZAR
- Minority Interest -19m ZAR
Equity Value 40.8B ZAR
/ Shares Outstanding 511.1m
Value per Share 79.79 ZAR
ZAR / Zac Exchange Rate 1
TKG DCF Value 7 979.2 Zac
Undervalued by 20%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
46.8B 52.6B
Operating Income
5.5B 6.6B
FCFF
5.3B 5B

What is the DCF value of one TKG stock?

Estimated DCF Value of one TKG stock is 7 979.2 Zac. Compared to the current market price of 6 378 Zac, the stock is Undervalued by 20%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Telkom SA SOC Ltd's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 44.9B ZAR.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 7 979.2 Zac per share.

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