Spark New Zealand Ltd
NZX:SPK
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EV/IC
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.
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.
Valuation Scenarios
If EV/IC returns to its 3-Year Average (2.3), the stock would be worth NZ$3.13 (51% upside from current price).
| 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%
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| Country Average | 1.2 | NZ$1.59 |
-23%
|
Forward EV/IC
Today’s price vs future invested capital
Peer Comparison
| 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
| Min | 0.2 |
| 30th Percentile | 0.9 |
| Median | 1.2 |
| 70th Percentile | 1.8 |
| Max | 24.1 |
Other Multiples
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.