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Telkom SA SOC Ltd
JSE:TKG

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Telkom SA SOC Ltd
JSE:TKG
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Price: 5 840 Zac 0.9% Market Closed
Market Cap: 29.9B ZAR

EV/EBIT

5.3
Current
15%
Cheaper
vs 3-y average of 6.2

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.

EV/EBIT
5.3
=
Enterprise Value
Zac35B
/
EBIT
6.3B

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.

EV/EBIT
5.3
=
Enterprise Value
Zac35B
/
EBIT
6.3B

Valuation Scenarios

Telkom SA SOC Ltd is trading below its 3-year average

If EV/EBIT returns to its 3-Year Average (6.2), the stock would be worth Zac6 861.68 (17% upside from current price).

Statistics
Positive Scenarios
3/3
Maximum Downside
No Downside Scenarios
Maximum Upside
+144%
Average Upside
60%
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
=
5.3
Current
Zac35B
/
Mar 2026
5.5B
=
6.4
Forward
Zac35B
/
Mar 2027
5.9B
=
6
Forward
Zac35B
/
Mar 2028
6.3B
=
5.6
Forward

Forward EV/EBIT shows whether today’s EV/EBIT still looks high or low once future ebit are taken into account.

Peer Comparison

All Multiples
EV/EBIT
P/E
All Countries
Close
Market Cap EV/EBIT P/E
ZA
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
Telstra Group Ltd
F:5KB
36.7B EUR 20.5 27

Market Distribution

Lower than 74% of companies in South Africa
Percentile
26th
Based on 21 companies
26th percentile
5.3
Low
2.3 — 13
Typical Range
13 — 78.9
High
78.9 —
Distribution Statistics
South Africa
Min 2.3
30th Percentile 13
Median 13
70th Percentile 78.9
Max 1 954.4

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.

TKG Intrinsic Value
8 027.57 Zac
Undervaluation 27%
Intrinsic Value
Price Zac5 840
T
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