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How these 20 global telcos stack up

Thiveyen Kathirrasan
Thiveyen Kathirrasan • 2 min read
How these 20 global telcos stack up
For those keen on investing in the telco sector, we at The Edge Singapore have filtered a list of stocks. Photo: Bloomberg
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For those keen on investing in the telco sector, we at The Edge Singapore have filtered a list of stocks.

These global telco stocks include Singapore-listed Singapore Telecommunications Z74 -

and StarHub CC3 - , and 18 other stocks which are the largest in the sector.

The only exception for investability is Saudi-listed Saudi Telecom.

We subsequently scored these 20 companies individually based on multiple financial metrics using the latest available financial data.

The scores are purely quantitative and have taken into consideration the company’s historical financials, yields, profitability, sentiment, financial safety and a separate valuation that compares the price growth to the weighted value growth over multiple periods.

This weighted value includes revenue, net income and cash flows. Investors ought to carry out a detailed qualitative analysis of the stocks of the highest-scoring telcos before adding them to their investment portfolio.

See also: Singtel in talks to build data centre in Johor — sources

Table 1 shows the list of the 20 telco-themed companies along with their scores and valuation. The top-scoring companies are Telkom Indonesia and China Mobile. Separately, Saudi Telecom, Chunghwa Telecom and China Mobile are the top-three scoring companies in terms of financial safety.

The financial safety metric considers liquidity and solvency ratios such as cash ratio, current ratio, net gearing and interest cover; along with the quality of its shareholder equity, if any.

See also: Is the Singapore telco market heading for a consolidation?

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Disclaimer: This article is for information purposes only and does not constitute a recommendation or solicitation or expression of views to influence readers to buy or sell stocks, including the stocks mentioned herein. This article does not take into account the investor’s financial situation, investment objectives, investment horizon, risk profile, risk tolerance and preferences. Any personal investments should be done at the investor’s own discretion and/or after consulting licensed investment professionals, at their own risk.

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