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Al-Babtain Power & Telecom Co. (2320) Fair Value & Analysis

Industrials · SA · Market cap 3.4B SAR

AB Al-Babtain Power & Telecom Co. 2320 · SR
Price61.20 SAR
Fair Value110.85 SAR
Upside+81.1%
Quality75/100
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Healthy Growth
Solidly profitable · 17.1% net margin
Low debt · generates free cash flow
Ranks above peers (13/14)
Wide moat 82/100
Evidence: High Range 80.02 SAR – 141.67 SAR Share as image

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 3 days ago

Share price +2.0% over the past month.

A strong business, screening 81% undervalued on our models.

What matters now

  • The rarer combination: high quality (75/100) AND below fair value. That earns a closer look rather than a quick verdict.
  • The price is below even our cautious bear case (80.02 SAR). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (5 years)

73.20 SAR 12.09 SAR Fair Value 110.85 SAR Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range 12.09 SAR – 73.20 SAR · fair‑value band 80.02 SAR – 141.67 SAR · the 61.20 SAR price screens below the 110.85 SAR fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Al-Babtain Power & Telecom Co. (2320) currently trades at 61.20 SAR, while our model-based Fair Value estimate is 110.85 SAR, implying the stock looks roughly 81.1% undervalued today. The Quality Score stands at 75/100 (high quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Al-Babtain Power & Telecom Co. generated revenue of 3.0B SAR at a net margin of 17.1%. Revenue grew 18.5% year over year. It earns a return on equity of 40.1%. Net debt stands at 796M SAR. Fundamentals as of Aug 13, 2026

Our scenario range runs from 80.02 SAR (bear case) to 141.67 SAR (bull case); at 61.20 SAR, the current price sits below 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 18% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -34% fair-value upside, at 81%, 2320 screens cheaper 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 79.31 SAR 117.51 SAR 171.11 SAR 80
Residual Income 45.61 SAR 61.70 SAR 409.96 SAR 76
Rev-Margin DCF 63.66 SAR 99.23 SAR 141.38 SAR 74
All 26 models by family
DCF Models
FCF DCF 78.63 SAR 122.88 SAR 189.59 SAR 38
Owner Earnings 68.67 SAR 107.20 SAR 165.31 SAR 31
5Y Revenue Exit 63.66 SAR 98.97 SAR 144.05 SAR 39
5Y EBITDA Exit 82.20 SAR 134.39 SAR 195.98 SAR 41
5Y P/E Exit 93.22 SAR 155.43 SAR 221.95 SAR 38
10Y Revenue Exit 66.75 SAR 100.21 SAR 145.52 SAR 36
10Y EBITDA Exit 80.09 SAR 124.53 SAR 185.03 SAR 37
10Y P/E Exit 87.01 SAR 138.97 SAR 204.80 SAR 35
Earnings-Based
Graham-Dodd 48.17 SAR 165.68 SAR 222.44 SAR 54
Lynch FV 38.23 SAR 54.62 SAR 71.00 SAR 50
PEG = 1.0 38.23 SAR 54.62 SAR 71.00 SAR 46
EPV 74.67 SAR 86.23 SAR 96.21 SAR 59
Dividend Discount
Gordon GGM 26.35 SAR 52.50 SAR 79.50 SAR 70
DDM Multi-Stage 26.35 SAR 44.84 SAR 55.42 SAR 61
Multiples
P/E Multiple 111.57 SAR 148.76 SAR 185.95 SAR 63
P/S Multiple 67.02 SAR 89.36 SAR 111.69 SAR 58
P/B Multiple 69.15 SAR 92.20 SAR 115.25 SAR 55
EV/EBIT 115.56 SAR 153.60 SAR 191.64 SAR 53
EV/EBITDA 93.90 SAR 124.72 SAR 155.55 SAR 54
EV/Revenue 57.72 SAR 81.85 SAR 105.98 SAR 43
Asset-Based
NCAV (Graham) 10.24 SAR 13.73 SAR 20.49 SAR 50
Growth DCF
Growth DCF 79.31 SAR 117.51 SAR 171.11 SAR 80
Rev-Margin DCF 63.66 SAR 99.23 SAR 141.38 SAR 74
Economic Profit
Residual Income 45.61 SAR 61.70 SAR 409.96 SAR 76
ROIC Compounder 79.14 SAR 96.81 SAR 115.77 SAR 72
Growth Earnings
Growth-Adj P/E 95.60 SAR 136.58 SAR 177.55 SAR 68

Widest divergence: Growth Earnings (136.58 SAR) versus Asset-Based (13.73 SAR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 3.0B SAR
Revenue growth (YoY) +18.5%
Net margin 17.1%
Return on equity 40.1%
Free cash flow 445M SAR FY2025
P/E ratio 7.7
More key figures
Operating margin 21.9%
EPS (TTM) 7.94 SAR
EPS growth (YoY) +62.4%
Net debt 796M SAR FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 75/100

Of which business quality 70 · Market factors (momentum, volatility) 50

Profitability 73
Margins and returns on capital today
Quality Growth 72
Are margins and returns improving?
Cashflow 66
Earnings quality: real cash, not paper profit
Fin. Strength 58
Balance sheet, leverage, solvency risk
Investment 68
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 44
Distance to the 52-week high (market factor)
Net Issuance 92
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

Al-Babtain Power and Telecommunications Company, together with its subsidiaries, produces lighting poles, power transmission towers and accessories, and communication towers in Saudi Arabia and internationally.

Full company description

Al-Babtain Power and Telecommunications Company, together with its subsidiaries, produces lighting poles, power transmission towers and accessories, and communication towers in Saudi Arabia and internationally. The company operates through the Towers and Metal Structures Sector; Poles and Lighting Sector; Design, Supply, and Installation Sector; and Solar Energy Sector segments. The Towers and Metal Structures Sector segment produces power transmission towers, galvanized communication towers and tests, and galvanized steel structures. The Poles and Lighting Sector segment engages in the production and galvanization of electricity and lighting poles, masts, and accessories; and production of street lighting lanterns for playgrounds and gardens, as well as electricity distribution panels. The Design, Supply, and Installation Sector segment supplies, installs, and maintains communication systems. The Solar Energy Sector segment is involved in the production of mobile metal components for solar photovoltaic energy tracking systems. In addition, it designs and produces poles, masts, and lanterns for lighting, and squares; manufactures, markets, and sells decorative poles and LED lighting; and installs, operates, and maintains programs for wired and wireless communication systems, computer devices, and networks, as well as mechanical and electrical equipment for factories; and metal moving components for single and biaxial solar PV tracking systems, and fixed metal components for the solar PV system. The company also installs, maintains, and repairs wind energy networks, and generates electric energy; and offers electrical and mechanical works, as well as provides oil and gas field services, including contracting; and operation and maintenance services for communication programs and systems. Al-Babtain Power and Telecommunications Company was founded in 1955 and is headquartered in Riyadh, Saudi Arabia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Al-Babtain Power & Telecom Co. reported revenue of 2.9B SAR in FY2025 versus 1.5B SAR in FY2021, a compound +18.0%/yr. Reported net income was 453M SAR in FY2025, compounding +72.6%/yr from FY2021.

Growth Quality 100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
2.9B SAR
Latest YoY
+1.6%
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.
+9.0%
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.
+15.5%
Avg. growth/yr (19Y) 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.
+7.3%
Revenue +18.0%/yr
FY21 1.5B SAR
FY22 2.2B SAR
FY23 2.5B SAR
FY24 2.8B SAR
FY25 2.9B SAR
Net income +72.6%/yr
FY21 51.0M SAR
FY22 52.6M SAR
FY23 141M SAR
FY24 266M SAR
FY25 453M SAR
Character of growth · EPS growth decomposed (2014-2025) +4.3 % p.a.
Revenue per share +2.6 pp

of which total revenue +7.4 pp · buybacks/dilution −4.8 pp

EBIT margin +2.9 pp
Tax rate −0.3 pp
Residual (interest, one-offs) −1.0 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Al-Babtain Power & Telecom Co. Fair Value". https://www.fairvalue-calculator.com/stock/2320

Peer Group

Engineering & Construction · 837 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 75 · Top 25%
Fair Value upside +81% · Top 25%
Return on equity (TTM) 40% · Top 25%
Return on assets 12% · Top 25%
Net margin (TTM) 17% · Top 25%
Operating margin (TTM) 22% · Top 25%
Revenue growth 19% · Above median
Dividend yield (TTM) 5.7% · Top 25%
Debt / equity 0.05× · Lower than median

Valuation Multiples vs Engineering & Construction median · lower = cheaper

P/E (TTM) 7.7× · Cheaper than 75% of peers
P/B 0.69× · Cheaper than median
P/S (TTM) 0.30× · Cheaper than median
P/FCF 2.0× · Pricier than median
EV/EBITDA 1.3× · Cheaper than 75% of peers

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 100 · sector 14
FUTURE 93 · sector 15
PAST 100 · sector 26
HEALTH 98 · sector 94
DIVIDEND 100 · sector 43

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 Engineering & Construction stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Larsen & Toubro Limited LT ₹4,020 ₹1,994 -50%
Samsung C&T Corporation 028260 357,500 KRW 261,411 KRW -27%
Hyundai Engineering & Construction Co 000720 113,700 KRW 61,453 KRW -46%
Samsung E&A Co 028050 49,300 KRW 43,624 KRW -12%
Rail Vikas Nigam Limited RVNL ₹230.00 ₹48.92 -79%
Daewoo Engineering & Construction Co 047040 18,400 KRW 6,507 KRW -65%
KEPCO Engineering & Construction Company 052690 99,800 KRW 19,346 KRW -81%
GS Engineering & Construction Corporation 006360 35,200 KRW 23,135 KRW -34%
DL E&C Co 375500 73,500 KRW 148,433 KRW +102%
KEPCO Plant Service & Engineering Co 051600 46,350 KRW 43,924 KRW -5%

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Frequently asked questions

Is Al-Babtain Power & Telecom Co. (2320) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of 110.85 SAR versus a price of 61.20 SAR, about +81% (undervalued).
What is the fair value of 2320?
Our model-based fair value for Al-Babtain Power & Telecom Co. is 110.85 SAR (as of Aug 13, 2026), built from audited fundamentals. The current price is 61.20 SAR.
What is the quality score of 2320?
Al-Babtain Power & Telecom Co. has a Quality Score of 75/100. 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 Al-Babtain Power & Telecom Co. (2320)?
Al-Babtain Power & Telecom Co. reported trailing-twelve-month revenue of about 3.0B SAR (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 2320?
The net profit margin of Al-Babtain Power & Telecom Co. is about 17.1%, meaning it keeps roughly 17.1% of revenue as net income. Based on the latest reported figures.

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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