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PCCW Limited (PCWLF) fair value: what the stock is really worth

As of Oct 2, 2026: fair value of PCCW Limited $1.02, price $0.65, upside +56.9%, quality 52 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? Yes
  2. Good quality? Yes
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Communication Services · US · Home Hong Kong · ISIN HK0008011667

PL PCCW Limited logo Thin data Sep 24, 2026

PCCW Limited

PCWLF · US

Clearly undervaluedStrong Fair Value upside, but quality is only moderate.

✓Fair value $1.02 · Strongly undervalued (+56.9%)
!Quality 52/100
!Mixed Growth (revenue 5y +2.3 %/yr)
!Loss-making · -0.1% net margin (TTM)
✓Negative equity (buybacks among others) · generates free cash flow
!Narrow moat 44/100
!Evidence only low, so the estimate is less certain
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What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$0.7642 $0.2491 Fair Value $1.02 Jan 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.

How to read this chart

60‑month range $0.2491 – $0.7642 · fair‑value band $1.00 – $1.71 · the $0.6500 price screens below the $1.02 fair value. Dashed = 300-day average. As of Sep 24, 2026.

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Company profile

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.

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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.

Stock analysis

PCCW Limited (PCWLF) currently trades at $0.6500, while our model-based Fair Value estimate is $1.02, implying the stock looks roughly 36.3% undervalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of $1.38 per share, and 11 of the 13 models we run sit above the $0.6500 price.

Bear case: the Multiples group reads lowest at $0.6000, and 2 of the 13 models stay below the price. Evidence for this calculation is low.

Scenario range: $1.00 (bear) to $1.71 (bull), the price of $0.6500 sits below 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 52/100 (solid quality), in the Communication Services sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

PCCW Limited reported revenue of HK$40.2B in FY2025 versus HK$35.5B in FY2021, a compound +3.2%/yr. Reported net income was −HK$27.0M in FY2025.

Key figures

Market cap $5.0B · P/S ratio 0.13 · Net margin −0.1% · Return on equity 28.6% · Return on assets (EBIT) 5.2% · Operating margin 14.6% · Revenue (TTM) HK$40.3B · Revenue growth (YoY) +7.4%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 32 out of 100 (medium confidence).

What moves the price

The share trades about 15% below its 52-week high and 5% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Communication Services peers we cover trades at 36% fair-value upside, at 57%, PCWLF screens cheaper than that median.

Fair Value models

Bear $1.00 Fair Value $1.02 Bull $1.71
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single 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. 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. Evidence ⓘEvidence = 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.
Highest evidence
FCF DCF $0.9600 $1.99 $3.56 77
Growth DCF $0.9700 $1.87 $3.12 76
Owner Earnings $0.5700 $1.38 $2.61 72
All 15 models by family
DCF Models
FCF DCF $0.9600 $1.99 $3.56 77
Owner Earnings $0.5700 $1.38 $2.61 72
5Y Revenue Exit $0.3100 $0.8600 $1.54 68
5Y EBITDA Exit $0.9300 $2.05 $3.37 72
10Y Revenue Exit $0.5100 $1.07 $1.81 64
10Y EBITDA Exit $0.9200 $1.89 $3.20 66
Earnings-Based
EPV n/a n/a $0.0700 68
Dividend Discount
Gordon GGM $0.4300 $0.8500 $1.29 67
DDM Multi-Stage $0.4300 $0.7300 $0.9000 67
Multiples
EV/EBIT $0.2500 $0.6000 $0.9600 61
EV/EBITDA $1.12 $1.77 $2.42 66
EV/Revenue n/a $0.3400 $0.6900 50
Growth DCF
Growth DCF $0.9700 $1.87 $3.12 76
Rev-Margin DCF $0.3100 $0.8700 $1.55 68
Economic Profit
ROIC Compounder n/a n/a $0.1900 68

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Quality Score breakdown

Overall quality 52/100

Of which business quality 48 · Market factors (momentum, volatility) 43

Profitability 18
Margins and returns on capital today
Quality Growth 44
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 53
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 37
Distance to the 52-week high (market factor)
Net Issuance 81
Share count: buybacks or dilution?

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Revenue & earnings trend

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. 58/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+7.2%
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.
+3.7%
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.
+2.3%
Start year 2020 (pandemic). Over 10 years: +0.2% a year
Revenue growth 26 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.
+23.9%
Profit margin (trend) ⓘ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.
11.8% (2020) → 13.5% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2025 is a loss year, no rate is defined from a loss
not computed

Growth Forecast

Little optimism in the price
The price assumes less growth than the company has delivered so far.
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).
−2.4%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (figures in HKD, Hong Kong: IMF forecast 2.1% a year to 2030, 1.8% from 2016 to 2025) that is about −4.4% a year for the price.

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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 · 237 stocks

Beats the industry median on 6/11 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 52 · Below median
Fair Value upside −41.0% · Bottom 25%
Profitability
Return on equity (TTM) 28.6% · Top 25%
Return on assets 3.3% · Below median
Net margin (TTM) −0.1% · Bottom 25%
Operating margin (TTM) 14.6% · Above median
Growth and dividend
Revenue growth 7.4% · Above median
Dividend yield (TTM) 55.5% · Top 25%

Valuation Multiplesvs Telecom Services median · lower = cheaper

P/S (TTM) 0.13× · Cheapest 25%
P/FCF 0.7× · Cheapest 25%
EV/EBITDA 7.8× · Pricier than median

Context: sector, industry, market

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

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
China Mobile Limited 80941 HK$67.30 HK$114.85 +71%
Verizon Communications Inc VZ $45.87 $70.27 +53%
T-Mobile US, Inc TMUS $162.98 $272.88 +67%
AT&T Inc T $24.48 $51.11 +109%
Bharti Airtel Limited BHARTIARTL ₹1,741 ₹1,883 +8%
China Telecom Corporation 601728 ¥6.16 ¥8.36 +36%
Saudi Telecom Company 7010 43.22 SAR 41.80 SAR −3%
Singapore Telecommunications Limited Z74 4.28 SGD 2.16 SGD −50%
Swisscom AG SCMN CHF 639.00 CHF 505.18 −21%
Telstra Group TLS A$4.83 A$4.43 −8%

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

Frequently asked questions

Is PCCW Limited (PCWLF) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $1.02 versus a price of $0.6500, about +57% upside (undervalued).
What is the fair value of PCWLF?
Our model-based fair value for PCCW Limited is $1.02 (as of Sep 24, 2026), built from audited fundamentals. The current price: $0.6500.
What is the quality score of PCWLF?
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 price target for PCCW Limited (PCWLF)?
Our model-based price target is the fair value of $1.02 (as of Sep 24, 2026) from 15 valuation models. Cautious scenario $1.00, optimistic scenario $1.71. It is a calculation from audited fundamentals, not an analyst target.
What is the PCCW Limited stock forecast for 2026?
Our models put fair value at $1.02, about +57% upside versus a price of $0.6500 (undervalued). Cautious scenario $1.00, optimistic scenario $1.71. The calculation is refreshed regularly with new filings.
What is the revenue of PCCW Limited (PCWLF)?
PCCW Limited reported trailing-twelve-month revenue of about HK$40.3B (latest available figure, as of Sep 24, 2026).
What growth is priced into PCCW Limited (PCWLF)?
For today's price to be fair in a discounted-cash-flow model, PCCW Limited would have to grow free cash flow by -2.4 % per year for five years (discount rate 8.5 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.3 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of PCWLF use?
Our models discount PCCW Limited at 8.5 %: a base by market capitalisation (mid), damped by beta 0.38, country premium for USA. 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 PCCW Limited that is -2.4 % per year a year over ten years, using the same discount rate (8.5 %) and the same formula as our fair value.
How much growth has PCCW Limited (PCWLF) delivered so far?
Over the past 5 years revenue at PCCW Limited grew +2.3 % a year. The price currently implies -2.4 % per year free-cash-flow growth a 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 PCCW Limited (PCWLF) growing?
The median revenue growth in the sector is +3.0 % a year. That is the yardstick for the growth priced into PCCW Limited (-2.4 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of PCCW Limited (PCWLF)?
The free-cash-flow yield on the price is 19.63 %: that much free cash flow PCCW Limited produces per unit of market value. When it exceeds the discount rate of our models (8.5 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of PCCW Limited (PCWLF)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For PCCW Limited it is $1.02 per share (as of Sep 24, 2026), against a price of $0.6500. It is the blended result of 15 valuation models (cash flow, earnings, asset, dividend).
Is PCCW Limited stock overvalued or undervalued in 2026?
As of Sep 24, 2026, PCWLF trades below its calculated fair value: price $0.6500, fair value $1.02, a gap of about +57% (undervalued). 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 PCWLF?
No. The price is what the market pays today ($0.6500); the fair value is what the company's own numbers justify ($1.02). For PCCW Limited the two are $0.3700 per share apart. That gap is exactly why we show both numbers side by side.
How much is PCCW Limited worth?
The market values PCCW Limited at about $5.0B (market capitalisation, as of Sep 24, 2026). Per share that is $0.6500; our models calculate a fair value of $1.02 per share.
What do the bullish and bearish scenarios say about PCWLF?
Our models span a range for PCCW Limited: cautious scenario $1.00, base $1.02, optimistic $1.71 per share (as of Sep 24, 2026, price $0.6500). The range comes from different growth and margin assumptions, not from analyst opinions.
How solid is the balance sheet of PCCW Limited (PCWLF)?
Balance-sheet figures for PCCW Limited (as of Sep 24, 2026): return on equity 28.6%. They feed the Quality Score of 52/100, which measures business quality independently of the share price.
How far is PCWLF from its 52-week high?
PCCW Limited trades at $0.6500, about 15% below its 52-week high of $0.7642 and 5% above the low of $0.6162 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $1.02 is for.
Which stocks are comparable to PCCW Limited?
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 PCCW Limited stock attractive at the current price?
The data as of Sep 24, 2026: price $0.6500, calculated fair value $1.02 (+57%), Quality Score 52/100, from 15 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 PCWLF calculated?
We run PCCW Limited through 15 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $1.02, 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 14.5 % above its aggregate fair value. PCCW Limited currently trades 36 % 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 PCCW Limited (PCWLF)?
The closing price on Oct 2, 2026 was $0.6500. Our model-based fair value is $1.02, about +57% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with PCCW Limited right now?
The price is below even our cautious bear case ($1.00). The market is more pessimistic than our downside scenario. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution. Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.

Key figures of PCCW Limited

How large is the market capitalisation of PCCW Limited (PCWLF)?
The market capitalisation of PCCW Limited is $5.0B. 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 PCCW Limited (PCWLF)?
The price-to-sales ratio of PCCW Limited is 0.13 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What is the net margin of PCCW Limited (PCWLF)?
The net margin of PCCW Limited is −0.1% (fiscal year 2025). 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 PCCW Limited (PCWLF)?
The return on equity (ROE) of PCCW Limited is 28.6% (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 PCCW Limited (PCWLF)?
On an EBIT basis the return on assets of PCCW Limited is 5.2% (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 PCCW Limited (PCWLF)?
The operating margin of PCCW Limited is 14.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at PCCW Limited (PCWLF)?
Revenue at PCCW Limited is growing +7.4% versus a year earlier (3y avg +3.7%). 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 PCCW Limited (PCWLF)?
Earnings per share at PCCW Limited are growing +18.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does PCCW Limited (PCWLF) carry?
The net debt of PCCW Limited is HK$68.3B (fiscal year 2025, ≈ 8.8 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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