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Singapore Telecommunications Ltd
SGX:Z74

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Singapore Telecommunications Ltd
SGX:Z74
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Price: 4.59 SGD 1.32% Market Closed
Market Cap: S$75.7B

EV/IC

2.1
Current
38%
More Expensive
vs 3-y average of 1.5

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
2.1
=
Enterprise Value
S$91.5B
/
Invested Capital
S$39.8B

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
2.1
=
Enterprise Value
S$91.5B
/
Invested Capital
S$39.8B

Valuation Scenarios

Singapore Telecommunications Ltd is trading above its 3-year average

If EV/IC returns to its 3-Year Average (1.5), the stock would be worth S$3.33 (27% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-61%
Maximum Upside
No Upside Scenarios
Average Downside
33%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 2.1 S$4.59
0%
3-Year Average 1.5 S$3.33
-27%
5-Year Average 1.3 S$2.75
-40%
Industry Average 2.1 S$4.5
-2%
Country Average 0.8 S$1.81
-61%

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
SG
Singapore Telecommunications Ltd
SGX:Z74
75.8B SGD 2.1 12.2
US
Verizon Communications Inc
NYSE:VZ
200.8B USD 0.9 11.6
US
AT&T Inc
NYSE:T
182B USD 0.8 8.6
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
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
59.9B AUD 1.9 26.5
AU
Telstra Group Ltd
F:5KB
36.3B EUR 1.9 26.7

Market Distribution

Higher than 77% of companies in Singapore
Percentile
77th
Based on 587 companies
77th percentile
2.1
Low
0 — 0.5
Typical Range
0.5 — 1.5
High
1.5 —
Distribution Statistics
Singapore
Min 0
30th Percentile 0.5
Median 0.8
70th Percentile 1.5
Max 45 619.7

Singapore Telecommunications Ltd
Glance View

Singapore Telecommunications Ltd., commonly known as Singtel, stands as a beacon in the telecommunications landscape of Asia. Founded in 1879, it has transformed from its humble beginnings as a domestic telephone company into a leading global communications powerhouse. Singtel's operations are steeped in innovation, driven by a persistent pursuit of connectivity across borders. The company provides a wide array of services, including mobile, broadband, and fixed line telephony services, which form the backbone of its revenue generation. Its influence extends beyond Singapore, maintaining strategic stakes in regional heavyweight telecommunications companies like Bharti Airtel in India and Telkomsel in Indonesia. This global presence allows Singtel to tap into diverse markets, amplifying its ability to harness cross-border synergies and offering its customers seamless communication solutions. The company’s robustness lies in its dual approach to market expansion and technological advancement. Recently, Singtel has been actively expanding its digital footprint by venturing into high-growth arenas such as cybersecurity, digital marketing, and data centers. These diversified ventures reflect a strategic maneuver to adapt to the fast-evolving digital landscape, meeting the ever-surging demand for data-centric services. Through its digital businesses, Singtel leverages the growing reliance on cloud computing and data storage, offering enterprise solutions that bolster its revenue streams. Moreover, the company remains committed to enhancing its core telecommunications infrastructure, investing in next-generation networks that promise faster, more reliable connectivity. This blend of legacy telecom expertise and forward-looking digital investments positions Singtel as a pivotal player in shaping the future of communication across the Asia Pacific region.

Z74 Intrinsic Value
3.36 SGD
Overvaluation 27%
Intrinsic Value
Price S$4.59
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