Shares in Telstra are at an attractive 21% discount to our AUD 4.50 fair value estimate. There is no impact on that intrinsic valuation from the restructure and trading update, with fiscal 2024 earnings guidance reaffirmed and management's fiscal 2025 projections in line with our expectations.
Telstra has market-leading shares across all vital telecommunications segments and is likely to maintain these positions in the future.
Regulatory risks are real. Wholesale NBN prices are high and could increase further, while government decision on mobile roaming could force Telstra to open up its network to other operators in regional and rural areas.
|
Metric
|
TLS
|
Z74
|
SPK
|
|---|---|---|---|
Price/Earnings (Normalized) | 36.14 | 18.06 | 18.77 |
Price/Book Value | 2.62 | 1.71 | 4.38 |
Price/Sales | 1.79 | 2.91 | 2.26 |
Price/Cash Flow | 6.41 | 9.74 | 10.15 |
|
Metric
|
TLS
|
Z74
|
SPK
|
|---|---|---|---|
Quick Ratio | 0.52 | 1.26 | 0.90 |
Current Ratio | 0.66 | 1.35 | 1.00 |
Interest Coverage | 4.61 | 2.99 | 5.08 |
|
Metric
|
TLS
|
Z74
|
SPK
|
|---|---|---|---|
Return on Assets (Normalized) | 5.03% | 4.85% | 0.13% |
Return on Equity (Normalized) | 14.83% | 9.03% | 0.31% |
Return on Invested Capital (Normalized) | 6.62% | 6.74% | −0.02% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
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