Spark New Zealand Ltd
NZX:SPK

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Spark New Zealand Ltd
NZX:SPK
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Price: 2.07 NZD -0.48% Market Closed
Market Cap: NZ$3.9B

EV/IC

1.5
Current
34%
Cheaper
vs 3-y average of 2.3

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.5
=
Enterprise Value
NZ$6B
/
Invested Capital
NZ$3.7B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.5
=
Enterprise Value
NZ$6B
/
Invested Capital
NZ$3.7B

Valuation Scenarios

Spark New Zealand Ltd is trading below its 3-year average

If EV/IC returns to its 3-Year Average (2.3), the stock would be worth NZ$3.13 (51% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-23%
Maximum Upside
+76%
Average Upside
27%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 1.5 NZ$2.07
0%
3-Year Average 2.3 NZ$3.13
+51%
5-Year Average 2.7 NZ$3.65
+76%
Industry Average 1.6 NZ$2.17
+5%
Country Average 1.2 NZ$1.59
-23%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
NZ
Spark New Zealand Ltd
NZX:SPK
3.9B NZD 1.5 13.5
US
Verizon Communications Inc
NYSE:VZ
201.1B USD 0.9 11.6
US
AT&T Inc
NYSE:T
181.9B USD 0.8 8.5
DE
Deutsche Telekom AG
XETRA:DTE
133.4B EUR 0.9 13.9
CN
China Telecom Corp Ltd
SSE:601728
551.8B CNY 0.8 16.7
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY 0.7 11.7
SG
Singapore Telecommunications Ltd
SGX:Z74
75.8B SGD 2.1 12.2
FR
Orange SA
PAR:ORA
47.2B EUR 0.8 87.8
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 1.6 12.8
CH
Swisscom AG
SIX:SCMN
34.3B CHF 1.5 27.2
AU
Telstra Corporation Ltd
ASX:TLS
60.4B AUD 1.9 26.7

Market Distribution

In line with most companies in New Zealand
Percentile
64rd
Based on 232 companies
64rd percentile
1.5
Low
0.2 — 0.9
Typical Range
0.9 — 1.8
High
1.8 —
Distribution Statistics
New Zealand
Min 0.2
30th Percentile 0.9
Median 1.2
70th Percentile 1.8
Max 24.1

Spark New Zealand Ltd
Glance View

Spark New Zealand Ltd, rooted deeply in the technology and telecommunications landscape, stands as a beacon of connectivity in the region. Historically, the company traces its origins to Telecom New Zealand, which underwent a significant transformation to become the dynamic entity it is today. This evolution reflects its commitment to adapting and thriving amidst technological advancements. Headquartered in Auckland, Spark has crafted its route to success by providing an extensive range of telecommunications and digital services, including mobile, internet, and broadband services, to both individual consumers and businesses. The company plays a pivotal role in enhancing the digital fabric of New Zealand, consistently focusing on customer-centric innovations and robust service delivery. The company's revenue engine functions through a multi-stream model, leveraging both traditional and contemporary telecommunication services. A significant portion of its income stems from mobile network services, where Spark competes vigorously to capture market share in a competitive landscape. Additionally, broadband and internet services form another vital pillar, underpinned by its expansive fiber optic network. Beyond these core services, Spark has ventured into digital services, including cloud computing and cybersecurity solutions, catering to the increasing digitalization needs of businesses. By aligning with technological trends and embracing new technologies such as 5G, Spark strategically positions itself not just as a telecom provider, but as a pivotal player in the digital transformation journey of New Zealand.

SPK Intrinsic Value
3.38 NZD
Undervaluation 39%
Intrinsic Value
Price NZ$2.07
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