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Saudi Telecom Company (7010) Fair Value & Analysis

Communication Services · SA · Market cap 216B SAR

ST Saudi Telecom Company 7010 · SR
Price43.14 SAR
Fair Value50.52 SAR
Upside+17.1%
Quality61/100
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Mixed Growth
Solidly profitable · 18.9% net margin
Low debt · generates free cash flow
Ranks above peers (12/14)
Wide moat 65/100
Evidence: High Range 37.66 SAR – 63.69 SAR Share as image

Fair value as of: Jul 30, 2026

From 25 valuation models · updated 11 days ago

Share price −0.2% over the past month.

A solid business, screening 17% undervalued on our models.

What matters now

  • Our model range runs from 37.66 SAR (bear) to 63.69 SAR (bull), base 50.52 SAR. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 61/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

44.80 SAR 21.43 SAR Fair Value 50.52 SAR Jan 2020 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 30, 2026.

How to read this chart

60‑month range 21.43 SAR – 44.80 SAR · fair‑value band 37.66 SAR – 63.69 SAR · the 43.14 SAR price screens below the 50.52 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 30, 2026.

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Analysis

Saudi Telecom Company (7010) currently trades at 43.14 SAR, while our model-based Fair Value estimate is 50.52 SAR, implying the stock looks roughly 17.1% undervalued today. The Quality Score stands at 61/100 (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, Saudi Telecom Company generated revenue of 78.5B SAR at a net margin of 18.9%. Revenue grew 3.8% year over year. It earns a return on equity of 16.8%. Net debt stands at 5.8B SAR. Fundamentals as of Jul 30, 2026

Our scenario range runs from 37.66 SAR (bear case) to 63.69 SAR (bull case); at 43.14 SAR, 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 4% below its 52-week high and 9% 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 17%, 7010 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 15.05 SAR 21.91 SAR 31.89 SAR 80
Residual Income 19.53 SAR 23.68 SAR 52.67 SAR 76
Rev-Margin DCF 21.13 SAR 34.53 SAR 48.99 SAR 74
All 25 models by family
DCF Models
FCF DCF 14.59 SAR 21.99 SAR 33.25 SAR 38
Owner Earnings 29.58 SAR 44.49 SAR 67.16 SAR 31
5Y Revenue Exit 21.13 SAR 34.55 SAR 51.37 SAR 39
5Y EBITDA Exit 30.29 SAR 51.01 SAR 74.56 SAR 41
5Y P/E Exit 33.11 SAR 56.07 SAR 79.36 SAR 38
10Y Revenue Exit 17.86 SAR 29.64 SAR 44.74 SAR 36
10Y EBITDA Exit 24.53 SAR 41.08 SAR 62.21 SAR 37
10Y P/E Exit 26.34 SAR 44.61 SAR 65.82 SAR 35
Earnings-Based
Graham-Dodd 20.21 SAR 50.56 SAR 65.61 SAR 54
PEG = 1.0 9.26 SAR 13.22 SAR 17.19 SAR 46
EPV 25.84 SAR 30.43 SAR 34.52 SAR 59
Dividend Discount
Gordon GGM 40.39 SAR 79.03 SAR 138.18 SAR 70
DDM Multi-Stage 40.39 SAR 62.33 SAR 87.25 SAR 61
Multiples
P/E Multiple 49.03 SAR 65.38 SAR 81.72 SAR 63
P/S Multiple 37.89 SAR 50.52 SAR 63.15 SAR 58
P/B Multiple 37.89 SAR 50.52 SAR 63.15 SAR 55
EV/EBIT 34.52 SAR 46.09 SAR 57.66 SAR 53
EV/EBITDA 43.93 SAR 58.64 SAR 73.35 SAR 54
EV/Revenue 26.12 SAR 37.41 SAR 48.69 SAR 43
Asset-Based
NCAV (Graham) 8.36 SAR 11.20 SAR 16.72 SAR 50
Growth DCF
Growth DCF 15.05 SAR 21.91 SAR 31.89 SAR 80
Rev-Margin DCF 21.13 SAR 34.53 SAR 48.99 SAR 74
Economic Profit
Residual Income 19.53 SAR 23.68 SAR 52.67 SAR 76
ROIC Compounder 27.07 SAR 34.08 SAR 42.24 SAR 72
Growth Earnings
Growth-Adj P/E 37.66 SAR 53.80 SAR 69.94 SAR 68

Widest divergence: Dividend Discount (62.33 SAR) versus Asset-Based (11.20 SAR). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) 78.5B SAR
Revenue growth (YoY) +3.8%
Net margin 18.9%
Return on equity 16.8%
Free cash flow 6.5B SAR FY2025
P/E ratio 14.4
More key figures
Operating margin 20.0%
EPS (TTM) 2.99 SAR
EPS growth (YoY) +1.4%
Net debt 5.8B SAR FY2025

Figures from reported company fundamentals · as of Jul 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 61/100

Of which business quality 59 · Market factors (momentum, volatility) 64

Profitability 56
Margins and returns on capital today
Quality Growth 36
Are margins and returns improving?
Cashflow 44
Earnings quality: real cash, not paper profit
Fin. Strength 75
Balance sheet, leverage, solvency risk
Investment 61
Disciplined investing over empire-building
Low Volatility 100
Calm price path (market factor)
Momentum 45
Price trend over the last 3–12 months (market factor)
52W Momentum 55
Distance to the 52-week high (market factor)
Net Issuance 83
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

Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally.

Full company description

Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally. The company establishes, manages, operates, and maintains fixed and mobile telecommunication networks, systems, and infrastructures; delivers, provides, maintains, and manages diverse telecommunication and information technology (IT) services; prepares, plans, and studies for technical, financial, and administrative aspects of telecommunication and IT services; expands and develops telecommunication networks, systems, and infrastructure; offers transfer of internet services; and wholesales and retails, imports, exports, purchases, owns, leases, manufactures, promotes, sells, develops, designs, setups, and maintains devices, equipment, and components. It also provides consultancy services; integrated communication and information technology solutions, including telecom, IT services, managed services, cloud services, and internet of things, etc.; information-based systems and technologies; financial and managerial support and other services; development, training, asset management, and other related services; solutions for decision support, business intelligence, and data investment; supply chain and other related services; and digital banking and cybersecurity services. In addition, the company engages in the selling, buying, leasing, managing, developing, and maintenance of real estate properties; and construction, maintenance, and repair of telecommunication, and radar stations and towers. Saudi Telecom Company was founded in 1998 and is headquartered in Riyadh, the Kingdom of Saudi Arabia.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Saudi Telecom Company reported revenue of 77.8B SAR in FY2025 versus 63.0B SAR in FY2021, a compound +5.4%/yr. Reported net income was 14.8B SAR in FY2025, compounding +7.0%/yr from FY2021.

Growth Quality 71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
77.8B SAR
Latest YoY
+2.5%
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.
+4.9%
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.
+5.7%
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.
+4.5%
Revenue +5.4%/yr
FY21 63.0B SAR
FY22 67.4B SAR
FY23 72.3B SAR
FY24 75.9B SAR
FY25 77.8B SAR
Net income +7.0%/yr
FY21 11.3B SAR
FY22 12.2B SAR
FY23 13.3B SAR
FY24 24.7B SAR
FY25 14.8B SAR
Character of growth · EPS growth decomposed (2014-2025) +6.8 % p.a.
Revenue per share +4.7 pp

of which total revenue +4.7 pp · buybacks/dilution +0.0 pp

EBIT margin −1.9 pp
Tax rate +0.4 pp
Residual (interest, one-offs) +3.6 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). "Saudi Telecom Company Fair Value". https://www.fairvalue-calculator.com/stock/7010

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 61 · Top 25%
Fair Value upside +17% · Above median
Return on equity (TTM) 17% · Top 25%
Return on assets 6% · Above median
Net margin (TTM) 19% · Top 25%
Operating margin (TTM) 20% · Above median
Revenue growth 4% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.17× · Lower than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 14.4× · Cheaper than median
P/B 0.69× · Cheaper than 75% of peers
P/S (TTM) 0.73× · Cheaper than median
P/FCF 8.8× · Pricier than median
EV/EBITDA 2.6× · 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 56 · sector 29
FUTURE 19 · sector 15
PAST 67 · sector 28
HEALTH 91 · sector 88
DIVIDEND 0 · 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 30, 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 Saudi Telecom Company (7010) overvalued or undervalued?
As of Jul 30, 2026, our model estimates a fair value of 50.52 SAR versus a price of 43.14 SAR, about +17% (undervalued).
What is the fair value of 7010?
Our model-based fair value for Saudi Telecom Company is 50.52 SAR (as of Jul 30, 2026), built from audited fundamentals. The current price is 43.14 SAR.
What is the quality score of 7010?
Saudi Telecom Company has a Quality Score of 61/100. 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 Saudi Telecom Company (7010)?
Saudi Telecom Company reported trailing-twelve-month revenue of about 78.5B SAR (latest available figure, as of Jul 30, 2026).
What is the net profit margin of 7010?
The net profit margin of Saudi Telecom Company is about 18.9%, meaning it keeps roughly 18.9% 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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