Spark New Zealand Ltd (SPKKY) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Spark New Zealand Ltd $5.12, price $5.40, upside -5.2%, quality 54 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
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 $4.73 – $12.73 · fair‑value band $3.38 – $8.15 · the $5.40 price screens above the $5.12 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 24, 2026.
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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.
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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.
Stock analysis
Spark New Zealand Ltd ADR (SPKKY) currently trades at $5.40, while our model-based Fair Value estimate is $5.12, so the stock looks roughly fairly valued today (gap 5.5%).
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Valuation
Bull case: the Multiples group reads highest at a median of $6.57 per share, and 10 of the 24 models we run sit above the $5.40 price.
Bear case: the Asset-Based group reads lowest at $1.51, and 14 of the 24 models stay below the price. Evidence for this calculation is high.
Scenario range: $3.38 (bear) to $8.15 (bull), the price of $5.40 sits inside 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 54/100 (solid quality), in the Communication Services sector.
Weak Growth: Revenue growth is weak: less than 2 % a year.
Spark New Zealand Ltd ADR reported revenue of 3.6B NZD in FY2025 versus 3.6B NZD in FY2021, a compound +0.2%/yr. Reported net income was 260M NZD in FY2025, compounding −9.3%/yr from FY2021.
Key figures
Market cap $2.0B · P/E ratio 13.2 · P/S ratio 0.95 · EPS (TTM) $0.4100 · Dividend yield 12.7% · Net margin 7.2% · Return on equity 19.7% · Return on assets (EBIT) 20.2%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 48 out of 100 (low confidence).
What moves the price
The share trades about 20% 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 −5%, SPKKY screens richer than that median.
Fair Value models
Bear $3.38Fair Value $5.12Bull $8.15
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. Based on fiscal year 2025 figures (about 12 months old). Earnings retained since then ($0.2050 per share) are deliberately not added.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.
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.40/100
Revenue growth is weak: less than 2 % a year.
Revenue growth 1 year
−3.6%
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.
−0.6%
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.
+0.2%
Start year 2020 (pandemic). Over 10 years: +0.8% a year
Revenue growth 34 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.
+1.0%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+4.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year−8.7%
Dividend (yield on the price)12.7%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−8.7% vs −3.5%, slowing
Profit margin 2020 to 2025 ⓘ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.31% → 10%
Start year 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
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).
+10.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+0.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in NZD, New Zealand: IMF forecast 2.3% a year to 2030, 3.0% from 2016 to 2025) that is about +8.1% a year for the price and −1.5% for the forecasts.
Compare Spark New Zealand Ltd ADR with another stock
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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 · 238 stocks
Beats the industry median on 9/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score54 · Above median
Fair Value upside+127.7% · Top 25%
Profitability
Return on equity (TTM)19.7% · Top 25%
Return on assets6.7% · Top 25%
Net margin (TTM)7.8% · Above median
Operating margin (TTM)7.6% · Below median
Growth and dividend
Revenue growth−1.2% · Below median
Dividend yield (TTM)12.7% · Top 25%
Balance sheet
Debt / equity0.70× · Above median
Valuation Multiplesvs Telecom Services median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Spark New Zealand Ltd ADR Fair Value". https://www.fairvalue-calculator.com/stock/SPKKY
Frequently asked questions
Is Spark New Zealand Ltd (SPKKY) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $5.12 versus a price of $5.40, about −5% upside (fairly valued).
What is the fair value of SPKKY?
Our model-based fair value for Spark New Zealand Ltd ADR is $5.12 (as of Sep 24, 2026), built from audited fundamentals. The current price: $5.40.
What is the quality score of SPKKY?
Spark New Zealand Ltd ADR 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 price target for Spark New Zealand Ltd (SPKKY)?
Our model-based price target is the fair value of $5.12 (as of Sep 24, 2026) from 24 valuation models. Cautious scenario $3.38, optimistic scenario $8.15. It is a calculation from audited fundamentals, not an analyst target.
What is the Spark New Zealand Ltd ADR stock forecast for 2026?
Our models put fair value at $5.12, about −5% upside versus a price of $5.40 (fairly valued). Cautious scenario $3.38, optimistic scenario $8.15. The calculation is refreshed regularly with new filings.
What is the revenue of Spark New Zealand Ltd (SPKKY)?
Spark New Zealand Ltd ADR reported trailing-twelve-month revenue of about 3.7B NZD (latest available figure, as of Sep 24, 2026).
Does Spark New Zealand Ltd ADR pay a dividend?
Spark New Zealand Ltd ADR currently shows a dividend yield of about 12.67% relative to its recent price (as of Sep 24, 2026).
What growth is priced into Spark New Zealand Ltd (SPKKY)?
For today's price to be fair in a discounted-cash-flow model, Spark New Zealand Ltd ADR would have to grow free cash flow by +10.6 % per year for five years (discount rate 9.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +0.2 % per year. As of Sep 24, 2026.
What discount rate (WACC) does the fair value of SPKKY use?
Our models discount Spark New Zealand Ltd ADR at 9.8 %: a base by market capitalisation (small), damped by beta 0.13, 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 Spark New Zealand Ltd ADR that is +10.6 % per year a year over ten years, using the same discount rate (9.8 %) and the same formula as our fair value.
How much growth has Spark New Zealand Ltd (SPKKY) delivered so far?
Over the past 5 years revenue at Spark New Zealand Ltd ADR grew +0.2 % a year. The price currently implies +10.6 % 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 Spark New Zealand Ltd (SPKKY) growing?
The median revenue growth in the sector is +3.1 % a year. That is the yardstick for the growth priced into Spark New Zealand Ltd ADR (+10.6 % 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 Spark New Zealand Ltd (SPKKY)?
The free-cash-flow yield on the price is 6.77 %: that much free cash flow Spark New Zealand Ltd ADR produces per unit of market value. When it exceeds the discount rate of our models (9.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Spark New Zealand Ltd (SPKKY)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Spark New Zealand Ltd ADR it is $5.12 per share (as of Sep 24, 2026), against a price of $5.40. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Spark New Zealand Ltd ADR stock overvalued or undervalued in 2026?
As of Sep 24, 2026, SPKKY trades above its calculated fair value: price $5.40, fair value $5.12, a gap of about −5% (fairly valued). 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 SPKKY?
No. The price is what the market pays today ($5.40); the fair value is what the company's own numbers justify ($5.12). For Spark New Zealand Ltd ADR the two are $0.2800 per share apart. That gap is exactly why we show both numbers side by side.
How much is Spark New Zealand Ltd ADR worth?
The market values Spark New Zealand Ltd ADR at about $2.0B (market capitalisation, as of Sep 24, 2026). Per share that is $5.40; our models calculate a fair value of $5.12 per share.
What do the bullish and bearish scenarios say about SPKKY?
Our models span a range for Spark New Zealand Ltd ADR: cautious scenario $3.38, base $5.12, optimistic $8.15 per share (as of Sep 24, 2026, price $5.40). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of SPKKY?
Spark New Zealand Ltd ADR trades at a price-to-earnings ratio of 13.2 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $5.12 is built from several models across several years. Other multiples: PEG 13.1, P/B 2.4, P/S 1.0, EV/EBITDA 5.5.
What is the PEG ratio of SPKKY?
The PEG ratio of Spark New Zealand Ltd ADR is 13.08 (P/E divided by earnings growth, as of Sep 24, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Spark New Zealand Ltd (SPKKY)?
Balance-sheet figures for Spark New Zealand Ltd ADR (as of Sep 24, 2026): return on equity 19.7%, debt of 0.70 per unit of equity. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is SPKKY from its 52-week high?
Spark New Zealand Ltd ADR trades at $5.40, about 20% below its 52-week high of $6.72 and 5% above the low of $5.12 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $5.12 is for.
Which stocks are comparable to Spark New Zealand Ltd ADR?
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 Spark New Zealand Ltd ADR stock attractive at the current price?
The data as of Sep 24, 2026: price $5.40, calculated fair value $5.12 (−5%), Quality Score 54/100, from 24 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 SPKKY calculated?
We run Spark New Zealand Ltd ADR through 24 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 $5.12, 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. Spark New Zealand Ltd ADR itself currently trades above fair value. 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 Spark New Zealand Ltd (SPKKY)?
The closing price on Oct 2, 2026 was $5.40. Our model-based fair value is $5.12, about −5% upside (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Spark New Zealand Ltd ADR right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($3.38 to $8.15) leaves room in how you read the outcome.
Where does the earnings growth of Spark New Zealand Ltd (SPKKY) come from?
Earnings per share at Spark New Zealand Ltd ADR grew +4.1 % a year from 2014 to 2025. Broken into its drivers: revenue per share +1.4 %, EBIT margin −2.2 %, tax rate +1.2 %, residual (interest, one-offs) +3.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Spark New Zealand Ltd ADR
How large is the market capitalisation of Spark New Zealand Ltd (SPKKY)?
The market capitalisation of Spark New Zealand Ltd ADR is $2.0B. 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 Spark New Zealand Ltd (SPKKY)?
The price-to-sales ratio of Spark New Zealand Ltd ADR is 0.95 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Spark New Zealand Ltd (SPKKY)?
Earnings per share at Spark New Zealand Ltd ADR are $0.4100 (price ÷ EPS = P/E 13.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Spark New Zealand Ltd (SPKKY)?
The dividend yield of Spark New Zealand Ltd ADR is 12.7% (payout 167%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Spark New Zealand Ltd (SPKKY)?
The net margin of Spark New Zealand Ltd ADR is 7.2% (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 Spark New Zealand Ltd (SPKKY)?
The return on equity (ROE) of Spark New Zealand Ltd ADR is 19.7% (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 Spark New Zealand Ltd (SPKKY)?
On an EBIT basis the return on assets of Spark New Zealand Ltd ADR is 20.2% (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 Spark New Zealand Ltd (SPKKY)?
The operating margin of Spark New Zealand Ltd ADR is 7.6% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Spark New Zealand Ltd (SPKKY)?
Revenue at Spark New Zealand Ltd ADR is growing −1.2% versus a year earlier (3y avg −0.6%). 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 Spark New Zealand Ltd (SPKKY)?
Earnings per share at Spark New Zealand Ltd ADR are growing +78.2% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Spark New Zealand Ltd (SPKKY) carry?
The net debt of Spark New Zealand Ltd ADR is 2.3B NZD (fiscal year 2025, ≈ 9.6 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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Broad data
Sep 24, 2026