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China Telecom Corporation (601728) Fair Value & Analysis

Communication Services · CN · Market cap 550B CNY

CT China Telecom Corporation 601728 · SHG
Price¥6.30
Fair Value¥8.36
Upside+32.7%
Quality57/100
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Mixed Growth
Thin margins · 6.1% net margin
Low debt · generates free cash flow
4.62% dividend yield
Ranks above peers (9/15)
Narrow moat 39/100
Evidence: High Range ¥6.39 – ¥10.32 Share as image

Fair value as of: Jul 18, 2026

From 26 valuation models · updated 20 days ago

Share price +14.1% over the past month.

A solid business, screening 33% undervalued on our models.

What matters now

  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from ¥6.39 (bear) to ¥10.32 (bull), base ¥8.36. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 57/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

¥8.17 ¥3.12 Fair Value ¥8.36 Aug 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range ¥3.12 – ¥8.17 · fair‑value band ¥6.39 – ¥10.32 · the ¥6.30 price screens below the ¥8.36 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

China Telecom Corporation (601728) currently trades at ¥6.30, while our model-based Fair Value estimate is ¥8.36, implying the stock looks roughly 32.7% undervalued today. We read business quality at 57/100 (solid quality), in the Communication Services 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, China Telecom Corporation generated revenue of 520B CNY at a net margin of 6.1%. Revenue declined 2.6% year over year. It earns a return on equity of 6.7%. The balance sheet holds a net cash position of 38.6B CNY. Fundamentals as of Jul 18, 2026

Our scenario range runs from ¥6.39 (bear case) to ¥10.32 (bull case); at ¥6.30, 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 19% 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 33%, 601728 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 BearBaseBull Evidence
Highest evidence
Growth DCF ¥9.51 ¥13.53 ¥19.49 80
Residual Income ¥4.96 ¥5.29 ¥5.79 76
Rev-Margin DCF ¥6.76 ¥9.47 ¥12.53 74
All 26 models by family
DCF Models
FCF DCF ¥9.30 ¥13.73 ¥20.64 38
Owner Earnings ¥11.14 ¥16.58 ¥25.06 31
5Y Revenue Exit ¥6.76 ¥9.38 ¥12.63 39
5Y EBITDA Exit ¥14.54 ¥23.65 ¥34.17 41
5Y P/E Exit ¥7.71 ¥11.12 ¥14.61 38
10Y Revenue Exit ¥7.44 ¥10.05 ¥13.35 36
10Y EBITDA Exit ¥12.62 ¥20.08 ¥29.87 37
10Y P/E Exit ¥8.20 ¥11.28 ¥14.87 35
Earnings-Based
Graham-Dodd ¥2.91 ¥8.16 ¥10.73 54
Lynch FV ¥1.65 ¥2.36 ¥3.06 50
PEG = 1.0 ¥1.65 ¥2.36 ¥3.06 46
EPV ¥4.90 ¥5.55 ¥6.13 59
Dividend Discount
Gordon GGM ¥3.11 ¥6.78 ¥11.41 70
DDM Multi-Stage ¥3.11 ¥5.01 ¥7.07 61
Multiples
P/E Multiple ¥6.41 ¥8.55 ¥10.69 63
P/S Multiple ¥5.45 ¥7.27 ¥9.08 58
P/B Multiple ¥5.45 ¥7.27 ¥9.08 55
EV/EBIT ¥7.84 ¥10.05 ¥12.26 53
EV/EBITDA ¥19.31 ¥25.35 ¥31.39 54
EV/Revenue ¥5.68 ¥7.59 ¥9.51 43
Asset-Based
NCAV (Graham) ¥2.97 ¥3.98 ¥5.94 50
Growth DCF
Growth DCF ¥9.51 ¥13.53 ¥19.49 80
Rev-Margin DCF ¥6.76 ¥9.47 ¥12.53 74
Economic Profit
Residual Income ¥4.96 ¥5.29 ¥5.79 76
ROIC Compounder ¥4.90 ¥5.55 ¥6.34 72
Growth Earnings
Growth-Adj P/E ¥5.15 ¥7.35 ¥9.56 68

Widest divergence: DCF Models (¥11.28) versus Earnings-Based (¥2.36). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 520B CNY
Revenue growth (YoY) -2.6%
Net margin 6.1%
Return on equity 6.7%
Free cash flow 53.8B CNY FY2025
P/E ratio 16.7
More key figures
Operating margin 6.2%
EPS (TTM) ¥0.3600
Dividend yield 4.6%
EPS growth (YoY) -17.4%
Net cash 38.6B CNY FY2025

Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 59 · Market factors (momentum, volatility) 52

Profitability 35
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 90
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 35
Distance to the 52-week high (market factor)
Net Issuance 82
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

China Telecom Corporation Limited, together with its subsidiaries, provides mobile communications, wireline and satellite communications, internet access, cloud computing and computing power, AI, big data, quantum, ICT integration in the People's Republic of China.

Full company description

China Telecom Corporation Limited, together with its subsidiaries, provides mobile communications, wireline and satellite communications, internet access, cloud computing and computing power, AI, big data, quantum, ICT integration in the People's Republic of China. The company offers mobile communications; wireline and smart family; industrial digitalisation; and other services. The company also develops and deploys industry-specific large models and digital platforms, including the Xingchen platform series, to support digital transformation in sectors such as manufacturing, education, healthcare, government, and smart city management. The company was incorporated in 2002 and is based in Beijing, China. China Telecom Corporation Limited operates as a subsidiary of China Telecom Group Co., Ltd.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Telecom Corporation reported revenue of ¥523B in FY2025 versus ¥440B in FY2021, a compound +4.4%/yr. Reported net income was ¥33.2B in FY2025, compounding +6.3%/yr from FY2021.

Growth Quality 65/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
523B CNY
Latest YoY
−1.2%
Avg. growth/yr (3Y)
+2.8%
Avg. growth/yr (5Y)
+5.9%
Avg. growth/yr (24Y)
+6.0%
Revenue +4.4%/yr
FY21 ¥440B
FY22 ¥481B
FY23 ¥514B
FY24 ¥529B
FY25 ¥523B
Net income +6.3%/yr
FY21 ¥25.9B
FY22 ¥27.6B
FY23 ¥30.4B
FY24 ¥33.0B
FY25 ¥33.2B

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Cite: Fair Value Calculator (2026). "China Telecom Corporation Fair Value". https://www.fairvalue-calculator.com/stock/601728

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Telecom Services · 252 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 57 · Above median
Fair Value upside +33% · Above median
Return on equity (TTM) 7% · Below median
Return on assets 3% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 6% · Below median
Revenue growth -3% · Below median
Dividend yield (TTM) 4.6% · Above median
Debt / equity 0.01× · Lower than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 16.7× · Cheaper than median
P/B 1.19× · Cheaper than median
P/S (TTM) 1.06× · Pricier than median
P/FCF 1.5× · Cheaper than median
EV/EBITDA 3.9× · Cheaper than 75% of peers
PEG 3.77× · Pricier 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 77 · sector 29
FUTURE 0 · sector 15
PAST 27 · sector 28
HEALTH 99 · sector 89
DIVIDEND 92 · sector 73

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 Jul 18, 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%
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%
TLKM TLKM 2,530 IDR 3,898 IDR +54%

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Frequently asked questions

Is China Telecom Corporation (601728) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of ¥8.36 versus a price of ¥6.30, about +33% (undervalued).
What is the fair value of 601728?
Our model-based fair value for China Telecom Corporation is ¥8.36 (as of Jul 18, 2026), built from audited fundamentals. The current price is ¥6.30.
What is the quality score of 601728?
China Telecom Corporation has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of China Telecom Corporation (601728)?
China Telecom Corporation reported trailing-twelve-month revenue of about 520B CNY (latest available figure, as of Jul 18, 2026).
What is the net profit margin of 601728?
The net profit margin of China Telecom Corporation is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does China Telecom Corporation pay a dividend?
China Telecom Corporation currently shows a dividend yield of about 4.53% relative to its recent price (as of Jul 18, 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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