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PCCW Limited (0008) Fair Value & Analysis

Communication Services · HK · Market cap HK$41.3B

PL PCCW Limited 0008 · HK
PriceHK$5.53
Fair ValueHK$3.15
Upside-43.0%
Quality52/100
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Mixed Growth
Loss-making · -0.1% net margin
Negative equity (buybacks among others) · generates free cash flow
7.04% dividend yield
Ranks above peers (8/13)
Narrow moat 44/100
Evidence: High Range HK$3.15 – HK$6.07 Share as image

Fair value as of: Aug 2, 2026

From 15 valuation models · updated 8 days ago

Share price −0.7% over the past month.

A solid business, but screening 43% overvalued on our models.

What matters now

  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (HK$3.15 to HK$6.07) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

HK$5.99 HK$2.18 Fair Value HK$3.15 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$2.18 – HK$5.99 · fair‑value band HK$3.15 – HK$6.07 · the HK$5.53 price screens above the HK$3.15 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

PCCW Limited (0008) currently trades at HK$5.53, while our model-based Fair Value estimate is HK$3.15, implying the stock looks roughly 43.0% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, PCCW Limited generated revenue of HK$40.3B at a net margin of -0.1%. Revenue grew 7.4% year over year. It earns a return on equity of 28.6%. Net debt stands at HK$66.0B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$3.15 (bear case) to HK$6.07 (bull case); at HK$5.53, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 9% below its 52-week high and 13% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at -43%, 0008 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model 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. Evidence
Highest evidence
Growth DCF HK$5.35 HK$11.58 HK$20.73 80
Rev-Margin DCF HK$1.71 HK$6.17 HK$11.48 74
ROIC Compounder HK$0.9600 HK$3.13 72
All 15 models by family
DCF Models
FCF DCF HK$5.22 HK$12.41 HK$23.75 38
Owner Earnings HK$2.03 HK$7.26 HK$15.51 31
5Y Revenue Exit HK$1.71 HK$6.10 HK$11.68 39
5Y EBITDA Exit HK$6.70 HK$15.65 HK$26.28 41
10Y Revenue Exit HK$2.64 HK$7.02 HK$12.90 36
10Y EBITDA Exit HK$6.06 HK$13.73 HK$24.30 37
Earnings-Based
EPV HK$0.4600 HK$1.33 59
Dividend Discount
Gordon GGM HK$3.51 HK$7.29 HK$11.56 70
DDM Multi-Stage HK$3.51 HK$6.11 HK$7.65 61
Multiples
EV/EBIT HK$2.27 HK$5.19 HK$8.10 53
EV/EBITDA HK$9.06 HK$14.24 HK$19.42 54
EV/Revenue HK$0.1500 HK$3.00 HK$5.84 43
Growth DCF
Growth DCF HK$5.35 HK$11.58 HK$20.73 80
Rev-Margin DCF HK$1.71 HK$6.17 HK$11.48 74
Economic Profit
ROIC Compounder HK$0.9600 HK$3.13 72

Widest divergence: DCF Models (HK$7.26) versus Earnings-Based (HK$0.4600). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$40.3B
Revenue growth (YoY) +7.4%
Net margin -0.1%
Return on equity 28.6%
Free cash flow HK$7.7B FY2025
Operating margin 14.6%
More key figures
EPS (TTM) HK$-0.0600
Dividend yield 7.0%
EPS growth (YoY) +18.3%
Net debt HK$66.0B FY2025

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 48 · Market factors (momentum, volatility) 59

Profitability 18
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 79
Earnings quality: real cash, not paper profit
Fin. Strength 6
Balance sheet, leverage, solvency risk
Investment 88
Disciplined investing over empire-building
Low Volatility 95
Calm price path (market factor)
Momentum 42
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

PCCW Limited, together with its subsidiaries, provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. It operates through HKT Limited (HKT), Media Business, and Other Businesses of the Group (Other Businesses) segments.

Full company description

PCCW Limited, together with its subsidiaries, provides telecommunications and related services in Hong Kong, Mainland and other parts of China, Singapore, and internationally. It operates through HKT Limited (HKT), Media Business, and Other Businesses of the Group (Other Businesses) segments. The company offers local telephony, local data and broadband, mobile, enterprise solutions, international telecommunications, and network-based telecommunications services; outsourcing and contact center services; IT solutions; and technical consulting and engineering services. It also provides free television, pay television program, interactive multimedia, and mobile video on demand and advertising services through OTT platform; sells advertising in various telephone directories and on the Internet, and mobile handsets and accessories; publishes directories; and distributes media content. In addition, the company offers broadcasting and related services, management and engineering support services, customer relationship management and customer contact management solutions, and content related services; and over-the-top video services under the Viu brand, as well as sells customer premises equipment and related solutions. Further, it engages in the sale, distribution, and marketing of telecommunication products and services; provision of data services; system design, project management, system implementation, managed services, hardware, hosting, software development, testing, and maintenance; the provision of computer and IP/IT related value-added services to business customers; operates customer loyalty program and online merchandise sales; and content production, talent management, and entertainment business. Additionally, the company offers e-commerce, travel, insurance, big data analytics, fintech, and health-tech services. The company was founded in 1925 and is headquartered in Quarry Bay, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

PCCW Limited reported revenue of HK$40.3B in FY2025 versus HK$35.5B in FY2021, a compound +3.2%/yr. Reported net income was −HK$27.0M in FY2025.

Growth Quality 58/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$40.3B
Latest YoY
+7.2%
Avg. growth/yr (3Y) 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.
+3.7%
Avg. growth/yr (5Y) 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.
+2.3%
Avg. growth/yr (26Y) 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.
+23.9%
Revenue +3.2%/yr
FY21 HK$35.5B
FY22 HK$36.1B
FY23 HK$36.3B
FY24 HK$37.6B
FY25 HK$40.3B
Net income
FY21 HK$1.3B
FY22 HK$393M
FY23 −HK$471M
FY24 −HK$66.0M
FY25 −HK$27.0M

0008 screens 43% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "PCCW Limited Fair Value". https://www.fairvalue-calculator.com/stock/0008

Peer Group

Telecom Services · 250 stocks

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.

Quality Score 52 · Below median
Fair Value upside −43% · Bottom 25%
Return on equity (TTM) 29% · Top 25%
Return on assets 3% · Above median
Net margin (TTM) -0% · Below median
Operating margin (TTM) 15% · Above median
Revenue growth 7% · Above median
Dividend yield (TTM) 7.0% · Top 25%

Valuation Multiples vs Telecom Services median · lower = cheaper

P/S (TTM) 0.13× · Cheaper than 75% of peers
P/FCF 0.7× · Cheaper than median
EV/EBITDA 7.8× · Pricier than median
PEG 1.68× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 29
FUTURE 37 · sector 15
PAST 100 · sector 28
HEALTH 100 · sector 88
DIVIDEND 100 · sector 73

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is PCCW Limited (0008) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$3.15 versus a price of HK$5.53, about −43% (overvalued).
What is the fair value of 0008?
Our model-based fair value for PCCW Limited is HK$3.15 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$5.53.
What is the quality score of 0008?
PCCW Limited has a Quality Score of 52/100. 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 revenue of PCCW Limited (0008)?
PCCW Limited reported trailing-twelve-month revenue of about HK$40.3B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0008?
The net profit margin of PCCW Limited is about -0.1%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does PCCW Limited pay a dividend?
PCCW Limited currently shows a dividend yield of about 7.04% relative to its recent price (as of Aug 2, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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