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China Telecom Corp Ltd
SSE:601728

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China Telecom Corp Ltd
SSE:601728
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Price: 6.03 CNY -0.17% Market Closed
Market Cap: ¥551.8B

EV/GP

3.2
Current
13%
Cheaper
vs 3-y average of 3.6

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.2
=
Enterprise Value
¥452.5B
/
Gross Profit
¥152.3B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
3.2
=
Enterprise Value
¥452.5B
/
Gross Profit
¥152.3B

Valuation Scenarios

China Telecom Corp Ltd is trading below its 3-year average

If EV/GP returns to its 3-Year Average (3.6), the stock would be worth ¥6.92 (15% upside from current price).

Statistics
Positive Scenarios
4/4
Maximum Downside
No Downside Scenarios
Maximum Upside
+328%
Average Upside
91%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 3.2 ¥6.03
0%
3-Year Average 3.6 ¥6.92
+15%
5-Year Average 3.5 ¥6.57
+9%
Industry Average 3.5 ¥6.65
+10%
Country Average 13.6 ¥25.82
+328%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
CN
China Telecom Corp Ltd
SSE:601728
551.8B CNY 3.2 16.7
US
Verizon Communications Inc
NYSE:VZ
201.1B USD 4.1 11.6
US
AT&T Inc
NYSE:T
181.9B USD 4 8.5
DE
Deutsche Telekom AG
XETRA:DTE
133.4B EUR 3.4 13.9
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY 0 11.7
SG
Singapore Telecommunications Ltd
SGX:Z74
75.8B SGD 10.5 12.2
FR
Orange SA
PAR:ORA
47.2B EUR 2.9 87.8
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 5.9 12.8
CH
Swisscom AG
SIX:SCMN
34.3B CHF 4.1 27.2
AU
Telstra Corporation Ltd
ASX:TLS
60.4B AUD 5 26.7
AU
Telstra Group Ltd
F:5KB
36.3B EUR 5 26.7

Market Distribution

Lower than 89% of companies in China
Percentile
11th
Based on 6 967 companies
11th percentile
3.2
Low
0 — 8
Typical Range
8 — 23.3
High
23.3 —
Distribution Statistics
China
Min 0
30th Percentile 8
Median 13.6
70th Percentile 23.3
Max 17 898 541.1

China Telecom Corp Ltd
Glance View

In the vast and bustling realm of China's telecommunications industry, China Telecom Corp Ltd. stands as a towering giant, weaving a complex web of connectivity across the nation and beyond. Originally a part of the expansive government-run China Telecom system, the company has transformed itself over the years into a formidable force in the global telecom market. With a rich legacy dating back to 2002 when it spun off from the larger governmental umbrella following aggressive reforms, China Telecom quickly adapted to the dynamic digital age. Serving as one of the leading providers of high-quality fixed-line and mobile telecommunications services, the company has facilitated seamless connections across urban and rural landscapes alike. Its operations are not limited to just providing basic telecom services but extend to offering an expansive array of internet access, information services, and even cloud computing solutions, positioning itself as a versatile player in an increasingly interconnected world. Behind China Telecom's sprawling network lies its strategic ability to monetize a varied portfolio of services, making it a linchpin in China's digital infrastructure. The company's revenue streams are built on the provision of voice, data, and multimedia services, driven by both consumer and enterprise demand. Its mobile service wing boasts a staggering number of subscribers, a testament to China's vast population and the growing necessity of mobile connectivity. Beyond traditional telecommunications, China Telecom has embraced the burgeoning world of data, diversifying into cloud computing and data center services, capitalizing on the digital transformation sweeping across industries. By offering integrated solutions that cater to businesses looking to digitize their operations, China Telecom has adeptly positioned itself as an indispensable partner in China's ongoing technological revolution. The company's strategic investments in next-generation technologies and infrastructure ensure it remains at the forefront of innovation, continually expanding its footprint both domestically and on the international stage.

Intrinsic Value
8.5 CNY
Undervaluation 29%
Intrinsic Value
Price ¥6.03
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