Telkom SA SOC Ltd
JSE:TKG
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EV/EBIT
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Enterprise Value to EBIT (EV/EBIT) ratio compares a company`s total enterprise value to its earnings before interest and taxes. It shows how much investors are paying for each dollar of the company`s earnings, including both equity and debt.
Valuation Scenarios
If EV/EBIT returns to its 3-Year Average (6.2), the stock would be worth Zac6 861.68 (17% upside from current price).
| Scenario | EV/EBIT Value | Implied Price | Upside/Downside |
|---|---|---|---|
| Current Multiple | 5.3 | Zac5 840 |
0%
|
| 3-Year Average | 6.2 | Zac6 861.68 |
+17%
|
| 5-Year Average | 6.3 | Zac6 900.1 |
+18%
|
| Country Average | 13 | Zac14 252.19 |
+144%
|
Forward EV/EBIT
Today’s price vs future ebit
| Today's Enterprise Value | EBIT | Forward EV/EBIT | ||
|---|---|---|---|---|
|
Zac35B
|
/ |
Oct 2025
6.3B
|
= |
|
|
Zac35B
|
/ |
Mar 2026
5.5B
|
= |
|
|
Zac35B
|
/ |
Mar 2027
5.9B
|
= |
|
|
Zac35B
|
/ |
Mar 2028
6.3B
|
= |
|
Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.
Peer Comparison
| Market Cap | EV/EBIT | P/E | ||||
|---|---|---|---|---|---|---|
| ZA |
T
|
Telkom SA SOC Ltd
JSE:TKG
|
29.1B ZAR | 5.3 | 3.6 | |
| US |
|
Verizon Communications Inc
NYSE:VZ
|
195.6B USD | 9.8 | 11.4 | |
| US |
|
AT&T Inc
NYSE:T
|
182.5B USD | 11.9 | 8.6 | |
| DE |
|
Deutsche Telekom AG
XETRA:DTE
|
133.6B EUR | 9.4 | 13.9 | |
| CN |
|
China Telecom Corp Ltd
SSE:601728
|
545.4B CNY | 11.8 | 16.2 | |
| JP |
|
Nippon Telegraph and Telephone Corp
TSE:9432
|
12.5T JPY | 10.2 | 11.6 | |
| SG |
|
Singapore Telecommunications Ltd
SGX:Z74
|
77.4B SGD | 58.1 | 12.5 | |
| FR |
|
Orange SA
PAR:ORA
|
46.9B EUR | 17.3 | 87.2 | |
| SA |
|
Saudi Telecom Company SJSC
SAU:7010
|
189.1B SAR | 12.9 | 12.8 | |
| CH |
|
Swisscom AG
SIX:SCMN
|
34.4B CHF | 24.6 | 27.7 | |
| AU |
T
|
Telstra Group Ltd
F:5KB
|
36.7B EUR | 20.5 | 27 |
Market Distribution
| Min | 2.3 |
| 30th Percentile | 13 |
| Median | 13 |
| 70th Percentile | 78.9 |
| Max | 1 954.4 |
Other Multiples
Telkom SA SOC Ltd
Glance View
Telkom SA SOC Ltd., born in South Africa’s historical telecommunications landscape, stands as a pivotal entity in the country’s digital and telecommunications journey. Established in 1991, during the pivotal period of South Africa's transition, it inherited a legacy tethered to fixed-line services, a domain it once dominated as a government monopoly. Over time, the company evolved in sync with the dynamic technological landscape, transitioning from its traditional roots into a multifaceted telecom giant. Today, Telkom extends its offerings beyond fixed-line telephony, delving into broadband, mobile communications, and information technology services. This transformation encapsulates a broader shift indicative of the global move from wired communication to digital and mobile solutions. In recent years, Telkom has focused on diversifying its revenue streams, marked by significant investments in its mobile and fiber-optic infrastructure. Much of its revenue now stems from these modernized sectors, with a growing customer base in mobile data and broadband services. By embracing the shift towards mobile and data-driven paradigms, Telkom has cleverly positioned itself within the rapidly changing digital landscape of Africa. It operates through several subsidiaries, including the popular mobile network brand, Telkom Mobile, and BCX, which serves enterprise customers with ICT solutions. This strategic pivot not only underscores its resilience but also anchors its profitability by catering to both retail and corporate sectors, ensuring a balanced portfolio that leverages traditional strengths and future-forward innovations.