Telkom (TKG) fair value: what the stock is really worth
As of Nov 9, 2026: fair value (intrinsic value) of Telkom stock ZAR 64.76, price ZAR 62.37, upside +3.8%, quality 57 out of 100. Rating: fairly valued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range R20.60 – R66.61 · fair‑value band R45.93 – R84.25 · the R62.37 price screens below the R64.76 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Telkom SA SOC Ltd operates as an integrated communications and information technology (IT) services provider in South Africa, the United States, the United Kingdom, rest of Europe, and internationally. It operates through Openserve, Telkom Consumer, and BCX segments.
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The company offers mobile and fixed-line telecommunication services, including broadband, optical and carrier, business-to-business connectivity, interconnect-based services, broadband data, voice, content, and gaming solutions; and small and medium entity information, communication, and technology solutions, as well as business mobility, global telecommunication, CPE-related services, converged communication, managed application-centric data networking, managed local area networking, unified collaboration as a service, and internet and value-added services.
It also provides IT, advertising, digital and social media advertising, e-commerce, and omni-channel services; and printed directory and international maritime services. In addition, the company rents network equipment, property, and vehicles; and offers insurance products and services.
It serves residential, business, government, wholesale, and corporate customers. Telkom SA SOC Ltd was incorporated in 1991 and is headquartered in Centurion, South Africa.
Stock analysis
Telkom (TKG) currently trades at R62.37, while our model-based Fair Value estimate is R64.76, so the stock looks roughly fairly valued today (gap 3.7%).
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Valuation
Bull case: the Multiples group reads highest at a median of R183.56 per share, and 20 of the 24 models we run sit above the R62.37 price.
Bear case: the Asset-Based group reads lowest at R41.06, and 4 of the 24 models stay below the price. Data coverage for this calculation is medium.
Scenario range: R45.93 (bear) to R84.25 (bull), the price of R62.37 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Communication Services sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Telkom reported revenue of 44.5B ZAR in FY2026 versus 42.8B ZAR in FY2022, a compound +1.0%/yr. Reported net income was 3.5B ZAR in FY2026, compounding +7.7%/yr from FY2022.
Key figures
Market cap 31.1B ZAR Small · P/E ratio 8.8 · P/S ratio 0.69 · EPS (TTM) R7.12 · Dividend yield 4.3% · Net margin 7.9% · Return on equity 10.2% · Return on assets (EBIT) 2.5% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).
What moves the price
The share trades about 6% below its 52-week high and 28% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 51% fair-value upside, at 4%, TKG screens richer than that median.
Fair Value models
BearR45.93Fair Value R64.76BullR84.25
Price R62.37 · Upside +3.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (2.70 ZAR per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCFR72.08R85.87R110.0882
Growth DCFR73.27R86.29R107.2680
Owner EarningsR63.78R75.83R96.9778
All 24 models by family
DCF Models
FCF DCFR72.08R85.87R110.0882
Owner EarningsR63.78R75.83R96.9778
5Y Revenue ExitR103.06R149.84R219.9172
5Y EBITDA ExitR103.91R151.29R215.8475
5Y P/E ExitR90.65R128.78R175.7171
10Y Revenue ExitR84.75R116.86R153.0468
10Y EBITDA ExitR87.68R117.63R150.9369
10Y P/E ExitR81.00R105.61R130.0965
Earnings-Based
Graham-DoddR48.78R75.61R90.4667
EPVR90.95R100.40R107.9874
Dividend Discount
Gordon GGMR0.0800R0.0900R0.100069
DDM Multi-StageR0.0800R0.1000R0.110067
Multiples
P/E MultipleR118.36R157.82R197.2763
P/S MultipleR91.46R121.95R152.4458
P/B MultipleR160.88R214.51R268.1455
EV/EBITR167.24R227.37R287.4966
EV/EBITDAR135.36R184.85R234.3567
EV/RevenueR123.65R182.27R240.9053
Asset-Based
NCAV (Graham)R30.64R41.06R61.2954
Growth DCF
Growth DCFR73.27R86.29R107.2680
Rev-Margin DCFR103.06R151.72R212.4673
Economic Profit
Residual IncomeR56.96R60.74R66.7976
ROIC CompounderR91.41R102.19R112.6372
Growth Earnings
Growth-Adj P/ER83.44R119.20R154.9567
The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
+1.4%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.0%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+0.6%
Start year 2021 (pandemic). Over 10 years: +1.8% a year
Revenue growth 25 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+1.4%
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What shareholders gained per year (last 5 years), in ZAR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in ZAR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+12.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.0%
Dividend (yield on the price)4.3%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.8.0% vs 1.6%, picking up
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.11% → 17%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far and about what analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+1.1%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+3.2%
Yearly sales growth analysts expect, extended to five years.
After inflation (South Africa: IMF forecast 3.3% a year to 2030, 4.9% from 2016 to 2025) that is about −2.1% a year for the price and 0.0% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Telecom Services · 234 stocks
Beats the industry median on 12/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score57 · Above median
Fair Value upside+3.8% · Below median
Profitability
Return on equity (12 months)10.2% · Above median
Return on assets5.5% · Above median
Net margin (12 months)7.9% · Above median
Operating margin (12 months)12.6% · Above median
Growth and dividend
Revenue growth (quarter YoY)−0.7% · Below median
Dividend yield (12 months)4.3% · Above median
Balance sheet
Debt / equity0.13× · Below median
Valuation Multiplesvs Telecom Services median · lower = cheaper
P/E (12 months)8.8× · Cheapest 25%
P/B0.86× · Cheaper than median
P/S (12 months)0.69× · Cheapest 25%
Price / free cash flow (fiscal year)8.8× · Cheaper than median
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Telkom Fair Value". https://www.fairvalue-calculator.com/stock/TKG
Frequently asked questions
Is Telkom (TKG) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of R64.76 versus a price of R62.37, about +4% upside (fairly valued).
What is the fair value of TKG?
Our model-based fair value for Telkom is R64.76 (as of Nov 6, 2026), built from audited fundamentals. The current price: R62.37.
What is the quality score of TKG?
Telkom has a Quality Score of 57/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Telkom (TKG)?
Our model-based price target is the fair value of R64.76 (as of Nov 6, 2026) from 24 valuation models. Cautious scenario R45.93, optimistic scenario R84.25. It is a calculation from audited fundamentals, not an analyst target.
What is the Telkom stock forecast for 2026?
Our models put fair value at R64.76, about +4% upside versus a price of R62.37 (fairly valued). Cautious scenario R45.93, optimistic scenario R84.25. The calculation is refreshed regularly with new filings.
What is the revenue of Telkom (TKG)?
Telkom reported trailing-twelve-month revenue of about 44.7B ZAR (latest available figure, as of Nov 6, 2026).
Does Telkom pay a dividend?
Telkom currently shows a dividend yield of 4.33% relative to its recent price (as of Nov 6, 2026).
How much is the dividend of Telkom (TKG) and when is the ex-dividend date?
Telkom pays a dividend of R2.70 per share a year, a dividend yield of 4.3%. The last ex-dividend date was Jun 24, 2026. The payout ratio is 37.9% of earnings. Free cash flow covers the dividend 2.63 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Telkom (TKG)?
For today's price to be fair in a discounted-cash-flow model, Telkom would have to grow free cash flow by +1.1 % per year for five years (discount rate 13.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.6 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of TKG use?
Our models discount Telkom at 13.4 %: a base by market capitalisation (small), damped by beta 0.55, country premium for South Africa. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Telkom that is +1.1 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (13.4 %) and the same formula as our fair value.
How much growth has Telkom (TKG) delivered so far?
Over the past 5 years revenue at Telkom grew +0.6 % a year. The price currently implies free-cash-flow growth of +1.1 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Telkom (TKG) growing?
The median revenue growth in the sector is +3.8 % a year. That is the yardstick for the growth priced into Telkom (+1.1 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Telkom (TKG)?
The free-cash-flow yield on the price is 11.32 %: that much free cash flow Telkom produces per unit of market value. When it exceeds the discount rate of our models (13.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Telkom (TKG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Telkom it is R64.76 per share (as of Nov 6, 2026), against a price of R62.37. It is the blended result of 24 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Telkom stock overvalued or undervalued in 2026?
As of Nov 6, 2026, TKG trades below its calculated fair value: price R62.37, fair value R64.76, a gap of about +4% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TKG?
No. The price is what the market pays today (R62.37); the fair value is what the company's own numbers justify (R64.76). For Telkom the two are R2.39 per share apart. That gap is exactly why we show both numbers side by side.
How much is Telkom worth?
The market values Telkom at about 31.1B ZAR (market capitalisation, as of Nov 6, 2026). Per share that is R62.37; our models calculate a fair value of R64.76 per share.
What do the bullish and bearish scenarios say about TKG?
Our models span a range for Telkom: cautious scenario R45.93, base R64.76, optimistic R84.25 per share (as of Nov 6, 2026, price R62.37). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TKG?
Telkom trades at a price-to-earnings ratio of 8.8 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R64.76 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 8.8. Other multiples: P/B 0.9, P/S 0.7, EV/EBITDA 2.9.
How solid is the balance sheet of Telkom (TKG)?
Balance-sheet figures for Telkom (as of Nov 6, 2026): return on equity 10.2%, debt of 0.13 per unit of equity. They feed the Quality Score of 57/100, which measures business quality independently of the share price.
How far is TKG from its 52-week high?
Telkom trades at R62.37, about 6% below its 52-week high of R66.61 and 28% above the low of R48.85 (as of Nov 9, 2026). Distance from the high says nothing about value: that is what the fair value of R64.76 is for.
Which stocks are comparable to Telkom?
From the same area (Communication Services) we also value China Mobile Limited, Verizon Communications Inc, T-Mobile US, Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Telkom stock attractive at the current price?
The data as of Nov 6, 2026: price R62.37, calculated fair value R64.76 (+4%), Quality Score 57/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TKG calculated?
We run Telkom through 24 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of R64.76 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. Telkom currently trades 4% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Telkom (TKG)?
The closing price on Nov 9, 2026 was R62.37. Our model-based fair value is R64.76, about +4% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Telkom right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range (R45.93 to R84.25) leaves room in how you read the outcome.
Where does the earnings growth of Telkom (TKG) come from?
Earnings per share at Telkom grew +4.4 % a year from 2015 to 2026. Broken into its drivers: revenue per share +2.5 %, EBIT margin +2.1 %, tax rate −0.7 %, residual (interest, one-offs) +0.5 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Telkom
How large is the market capitalisation of Telkom (TKG)?
The market capitalisation of Telkom is 31.1B ZAR. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Telkom (TKG)?
The price-to-sales ratio of Telkom is 0.69 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Telkom (TKG)?
Earnings per share at Telkom are R7.12 (price ÷ EPS = P/E 8.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Telkom (TKG)?
The dividend yield of Telkom is 4.3% (payout 37.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Telkom (TKG)?
The net margin of Telkom is 7.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Telkom (TKG)?
The return on equity (ROE) of Telkom is 10.2% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Telkom (TKG)?
On an EBIT basis the return on assets of Telkom is 2.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Telkom (TKG)?
The operating margin of Telkom is 12.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Telkom (TKG)?
Revenue at Telkom is growing −0.7% versus a year earlier (3y avg +1.0%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Telkom (TKG)?
Earnings per share at Telkom are growing −69.8% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Telkom (TKG) carry?
The net debt of Telkom is 6.5B ZAR (fiscal year 2026, ≈ 1.8 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Some data
Nov 6, 2026