EN DE

Spark New Zealand Limited (SPK) Fair Value & Analysis

Communication Services · AU · Market cap A$2.9B

SN Spark New Zealand Limited SPK · AU
PriceA$1.63
Fair ValueA$1.42
Upside-12.9%
Quality54/100
Watch Spark New Zealand Limited for free, get notified when fair value or trend changes. Watch for free
Weak Growth
Thin margins · 7.8% net margin
Moderate debt · generates free cash flow
13.40% dividend yield
Ranks above peers (9/15)
Moderate moat 52/100
Evidence: High Range A$0.8400 – A$2.42 Share as image

Fair value as of: Jul 13, 2026

From 22 valuation models · updated 28 days ago

Fair value updated Jul 13, 2026, revised from A$1.72 to A$1.42 (−17.4%) since Jun 24, 2026. Share price +7.2% over the past month.

A solid business, but screening 13% overvalued on our models.

What matters now

  • The model range is unusually wide (A$0.8400 to A$2.42). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

A$4.04 A$1.45 Fair Value A$1.42 May 2021 Aug 2026

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

How to read this chart

60‑month range A$1.45 – A$4.04 · fair‑value band A$0.8400 – A$2.42 · the A$1.63 price screens above the A$1.42 fair value. Dashed = 300-day average. As of Jul 13, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Spark New Zealand Limited (SPK) currently trades at A$1.63, while our model-based Fair Value estimate is A$1.42, implying the stock looks roughly 12.9% overvalued today. The Quality Score stands at 54/100 (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, Spark New Zealand Limited generated revenue of A$3.7B at a net margin of 7.8%. Revenue declined 1.2% year over year. It earns a return on equity of 19.7%. Net debt stands at A$2.3B. Fundamentals as of Jul 13, 2026

Our scenario range runs from A$0.8400 (bear case) to A$2.42 (bull case); at A$1.63, 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 27% 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 -13%, SPK 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 BearBaseBull Evidence
Highest evidence
Growth DCF A$0.6800 A$1.09 A$1.78 80
Residual Income A$0.8700 A$1.14 A$3.39 76
Rev-Margin DCF A$0.8800 A$1.64 A$2.56 74
All 22 models by family
DCF Models
FCF DCF A$0.6300 A$1.06 A$1.83 38
Owner Earnings A$1.25 A$1.90 A$3.08 31
5Y Revenue Exit A$0.8800 A$1.61 A$2.68 39
5Y EBITDA Exit A$2.14 A$3.80 A$5.99 41
5Y P/E Exit A$1.09 A$1.97 A$3.03 38
10Y Revenue Exit A$0.7200 A$1.25 A$1.82 36
10Y EBITDA Exit A$1.52 A$2.57 A$3.72 37
10Y P/E Exit A$0.8900 A$1.47 A$2.03 35
Earnings-Based
Graham-Dodd A$0.9400 A$1.14 A$1.29 54
EPV A$0.7300 A$0.9300 A$1.11 59
Multiples
P/E Multiple A$2.27 A$3.03 A$3.78 63
P/S Multiple A$1.75 A$2.34 A$2.92 58
P/B Multiple A$1.75 A$2.34 A$2.92 55
EV/EBIT A$1.74 A$2.51 A$3.27 53
EV/EBITDA A$3.77 A$5.21 A$6.65 54
EV/Revenue A$1.19 A$1.93 A$2.68 43
Asset-Based
NCAV (Graham) A$0.4000 A$0.5400 A$0.8000 50
Growth DCF
Growth DCF A$0.6800 A$1.09 A$1.78 80
Rev-Margin DCF A$0.8800 A$1.64 A$2.56 74
Economic Profit
Residual Income A$0.8700 A$1.14 A$3.39 76
ROIC Compounder A$0.7300 A$0.9500 A$1.19 72
Growth Earnings
Growth-Adj P/E A$1.60 A$2.29 A$2.97 68

Widest divergence: Multiples (A$2.34) versus Asset-Based (A$0.5400). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) A$3.7B
Revenue growth (YoY) -1.2%
Net margin 7.8%
Return on equity 19.7%
Free cash flow A$240M FY2025
P/E ratio 12.8
More key figures
Operating margin 7.6%
EPS (TTM) A$0.1200
Dividend yield 13.5%
EPS growth (YoY) +78.2%
Net debt A$2.3B FY2025

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

Quality Score breakdown

Overall quality 54/100

Of which business quality 53 · Market factors (momentum, volatility) 42

Profitability 55
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 33
Balance sheet, leverage, solvency risk
Investment 75
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 23
Price trend over the last 3–12 months (market factor)
52W Momentum 17
Distance to the 52-week high (market factor)
Net Issuance 75
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

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand. It operates through Mobile, Broadband, IT Products, Voice, IT Services, Procurement and Partners, and High-tech segments.

Full company description

Spark New Zealand Limited, together with its subsidiaries, provides telecommunications and digital services in New Zealand. It operates through Mobile, Broadband, IT Products, Voice, IT Services, Procurement and Partners, and High-tech segments. The company offers telecommunications, information technology, media, and other digital products and services, including mobile services; broadband services; IT products; IT services; voice services; procurement and partner services; and high-tech and data centers. It also provides IT infrastructure build and maintenance services, and distribution and supply chain services; environmental IOT solutions; international, wholesale, and outsourced telecommunications services; and digital and cloud services. In addition, the company is involved in decentralised identity and verifiable data activities; and data analytics, finance, and insurance business. It serves individuals, households, small businesses, governments, and large enterprise. The company was formerly known as Telecom Corporation of New Zealand Limited and changed its name to Spark New Zealand Limited in August 2014. Spark New Zealand Limited was incorporated in 1987 and is headquartered in Auckland, New Zealand.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Spark New Zealand Limited reported revenue of A$3.6B in FY2025 versus A$3.6B in FY2021, a compound +0.4%/yr. Reported net income was A$260M in FY2025, compounding −9.3%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
A$3.6B
Latest YoY
−6.2%
Avg. growth/yr (3Y)
−0.6%
Avg. growth/yr (5Y)
+0.2%
Avg. growth/yr (34Y)
+1.0%
Revenue +0.4%/yr
FY21 A$3.6B
FY22 A$3.7B
FY23 A$3.9B
FY24 A$3.9B
FY25 A$3.6B
Net income −9.3%/yr
FY21 A$384M
FY22 A$410M
FY23 A$1.1B
FY24 A$316M
FY25 A$260M

SPK screens 13% overvalued. Compare with China Mobile Limited →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Spark New Zealand Limited Fair Value". https://www.fairvalue-calculator.com/stock/SPK

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 54 · Above median
Fair Value upside −13% · Below median
Return on equity (TTM) 20% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 8% · Above median
Operating margin (TTM) 8% · Below median
Revenue growth -1% · Below median
Dividend yield (TTM) 13.4% · Top 25%
Debt / equity 0.70× · Higher than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 12.9× · Cheaper than median
P/B 1.36× · Cheaper than median
P/S (TTM) 0.56× · Cheaper than median
P/FCF 8.6× · Pricier than median
EV/EBITDA 3.7× · Cheaper than 75% of peers
PEG 13.14× · 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 16 · sector 30
FUTURE 0 · sector 15
PAST 79 · sector 28
HEALTH 65 · sector 89
DIVIDEND 100 · sector 72

Insider activity: 30/100

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 13, 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%

Compare Spark New Zealand Limited with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Communication Services stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is Spark New Zealand Limited (SPK) overvalued or undervalued?
As of Jul 13, 2026, our model estimates a fair value of A$1.42 versus a price of A$1.63, about −13% (overvalued).
What is the fair value of SPK?
Our model-based fair value for Spark New Zealand Limited is A$1.42 (as of Jul 13, 2026), built from audited fundamentals. The current price is A$1.63.
What is the quality score of SPK?
Spark New Zealand Limited has a Quality Score of 54/100. 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 Spark New Zealand Limited (SPK)?
Spark New Zealand Limited reported trailing-twelve-month revenue of about A$3.7B (latest available figure, as of Jul 13, 2026).
What is the net profit margin of SPK?
The net profit margin of Spark New Zealand Limited is about 7.8%, meaning it keeps roughly 7.8% of revenue as net income. Based on the latest reported figures.
Does Spark New Zealand Limited pay a dividend?
Spark New Zealand Limited currently shows a dividend yield of about 13.49% relative to its recent price (as of Jul 13, 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.

14 days Pro free · no card

Track Spark New Zealand Limited and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.