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Singapore Telecommunications Limited (Z74) Fair Value & Analysis

Communication Services · SG · Market cap 72.7B SGD

ST Singapore Telecommunications Limited Z74 · SG
Price4.33 SGD
Fair Value2.98 SGD
Upside-31.2%
Quality59/100
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Weak Growth
Highly profitable · 39.3% net margin
Low debt · generates free cash flow
4.21% dividend yield
Mixed vs. peers (6/15)
Moderate moat 61/100
Evidence: High Range 2.29 SGD – 3.81 SGD Share as image

Fair value as of: Jul 18, 2026

From 24 valuation models · updated 20 days ago

Share price −1.1% over the past month.

A solid business, but screening 31% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (3.81 SGD). The favourable scenario is already priced in.
  • Solid but not exceptional quality (59/100) and above fair value, neither a clear bargain nor a standout compounder.
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Price vs Fair Value (5 years)

5.21 SGD 1.80 SGD Fair Value 2.98 SGD May 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 1.80 SGD – 5.21 SGD · fair‑value band 2.29 SGD – 3.81 SGD · the 4.33 SGD price screens above the 2.98 SGD fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Singapore Telecommunications Limited (Z74) currently trades at 4.33 SGD, while our model-based Fair Value estimate is 2.98 SGD, implying the stock looks roughly 31.2% overvalued today. We read business quality at 59/100 (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, Singapore Telecommunications Limited generated revenue of 14.3B SGD at a net margin of 39.3%. Revenue grew 4.6% year over year. It earns a return on equity of 20.6%. Net debt stands at 8.2B SGD. Fundamentals as of Jul 18, 2026

Our scenario range runs from 2.29 SGD (bear case) to 3.81 SGD (bull case); at 4.33 SGD, the current price sits above 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. Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic. The share trades about 18% below its 52-week high and 20% 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 -31%, Z74 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 1.01 SGD 1.53 SGD 2.43 SGD 80
Residual Income 2.18 SGD 2.75 SGD 8.05 SGD 76
Rev-Margin DCF 0.4900 SGD 0.8400 SGD 1.29 SGD 74
All 24 models by family
DCF Models
FCF DCF 0.9400 SGD 1.48 SGD 2.48 SGD 38
Owner Earnings 2.74 SGD 3.99 SGD 6.29 SGD 31
5Y Revenue Exit 0.4900 SGD 0.8100 SGD 1.28 SGD 39
5Y EBITDA Exit 1.22 SGD 2.08 SGD 3.22 SGD 41
5Y P/E Exit 2.80 SGD 4.81 SGD 7.21 SGD 38
10Y Revenue Exit 0.6400 SGD 0.8900 SGD 1.16 SGD 36
10Y EBITDA Exit 1.10 SGD 1.68 SGD 2.30 SGD 37
10Y P/E Exit 2.06 SGD 3.37 SGD 4.64 SGD 35
Earnings-Based
Graham-Dodd 2.33 SGD 2.85 SGD 3.20 SGD 54
EPV 0.0400 SGD 59
Dividend Discount
Gordon GGM 1.70 SGD 1.87 SGD 2.11 SGD 70
DDM Multi-Stage 1.70 SGD 2.14 SGD 2.75 SGD 61
Multiples
P/E Multiple 5.14 SGD 6.85 SGD 8.56 SGD 63
P/S Multiple 1.63 SGD 2.18 SGD 2.72 SGD 58
P/B Multiple 3.93 SGD 5.23 SGD 6.54 SGD 55
EV/EBIT 0.6000 SGD 0.9400 SGD 1.28 SGD 53
EV/EBITDA 1.71 SGD 2.42 SGD 3.13 SGD 54
EV/Revenue 0.2600 SGD 0.5600 SGD 0.8600 SGD 43
Asset-Based
NCAV (Graham) 0.8700 SGD 1.17 SGD 1.74 SGD 50
Growth DCF
Growth DCF 1.01 SGD 1.53 SGD 2.43 SGD 80
Rev-Margin DCF 0.4900 SGD 0.8400 SGD 1.29 SGD 74
Economic Profit
Residual Income 2.18 SGD 2.75 SGD 8.05 SGD 76
ROIC Compounder 0.0400 SGD 72
Growth Earnings
Growth-Adj P/E 3.63 SGD 5.19 SGD 6.75 SGD 68

Widest divergence: Growth Earnings (5.19 SGD) versus Growth DCF (0.8400 SGD). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) 14.3B SGD
Revenue growth (YoY) +4.6%
Net margin 39.3%
Return on equity 20.6%
Free cash flow 2.3B SGD FY2026
P/E ratio 13.1
More key figures
Operating margin 8.4%
EPS (TTM) 0.3400 SGD
Dividend yield 4.2%
EPS growth (YoY) -80.7%
Net debt 8.2B SGD FY2026

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

Quality Score breakdown

Overall quality 59/100

Of which business quality 59 · Market factors (momentum, volatility) 55

Profitability 57
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 54
Earnings quality: real cash, not paper profit
Fin. Strength 61
Balance sheet, leverage, solvency risk
Investment 60
Disciplined investing over empire-building
Low Volatility 92
Calm price path (market factor)
Momentum 38
Price trend over the last 3–12 months (market factor)
52W Momentum 41
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

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, and internationally. It operates through Optus, Singtel Singapore, NCS, and Digital InfraCo segments.

Full company description

Singapore Telecommunications Limited, together with its subsidiaries, provides telecommunication services to consumers and small businesses in Singapore, Australia, and internationally. It operates through Optus, Singtel Singapore, NCS, and Digital InfraCo segments. The company provides mobile, equipment sales, fixed voice and data, satellite, ICT and managed services; pay television, content and digital services, and ICT services and sells equipments; and technology services to clients through its Gov+, Enterprise, and Telco+ groups. It also offers regional data center services under Nxera; satellite carrier services; and Paragon, a digital acceleration platform for 5G multi-access edge compute and cloud orchestration, as well as AI Cloud Service through RE:AI. In addition, the company offers services comprising insurance, my Singtel app, my smart network, GXS bank, dash, Singtel paylater, and telephony services. The company was incorporated in 1992 and is headquartered in Singapore.

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

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Singapore Telecommunications Limited reported revenue of 14.3B SGD in FY2026 versus 15.3B SGD in FY2022, a compound −1.8%/yr. Reported net income was 5.6B SGD in FY2026, compounding +30.2%/yr from FY2022.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2026)
14.3B SGD
Latest YoY
+0.8%
Avg. growth/yr (3Y)
−0.8%
Avg. growth/yr (5Y)
−1.8%
Avg. growth/yr (12Y)
−1.4%
Revenue −1.8%/yr
FY22 15.3B SGD
FY23 14.6B SGD
FY24 14.1B SGD
FY25 14.1B SGD
FY26 14.3B SGD
Net income +30.2%/yr
FY22 1.9B SGD
FY23 2.2B SGD
FY24 795M SGD
FY25 4.0B SGD
FY26 5.6B SGD

Z74 screens 31% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "Singapore Telecommunications Limited Fair Value". https://www.fairvalue-calculator.com/stock/Z74

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 59 · Above median
Fair Value upside −31% · Below median
Return on equity (TTM) 21% · Top 25%
Return on assets 2% · Below median
Net margin (TTM) 39% · Top 25%
Operating margin (TTM) 8% · Below median
Revenue growth 5% · Above median
Dividend yield (TTM) 4.2% · Above median
Debt / equity 0.37× · Higher than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 13.1× · Cheaper than median
P/B 1.99× · Pricier than median
P/S (TTM) 3.99× · Pricier than 75% of peers
P/FCF 24.5× · Pricier than 75% of peers
EV/EBITDA 18.7× · Pricier than 75% of peers
PEG 1.47× · Pricier than median

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 0 · sector 29
FUTURE 23 · sector 15
PAST 82 · sector 28
HEALTH 82 · sector 89
DIVIDEND 84 · sector 73

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

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 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%
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 Singapore Telecommunications Limited (Z74) overvalued or undervalued?
As of Jul 18, 2026, our model estimates a fair value of 2.98 SGD versus a price of 4.33 SGD, about −31% (overvalued).
What is the fair value of Z74?
Our model-based fair value for Singapore Telecommunications Limited is 2.98 SGD (as of Jul 18, 2026), built from audited fundamentals. The current price is 4.33 SGD.
What is the quality score of Z74?
Singapore Telecommunications Limited has a Quality Score of 59/100. 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 Singapore Telecommunications Limited (Z74)?
Singapore Telecommunications Limited reported trailing-twelve-month revenue of about 14.3B SGD (latest available figure, as of Jul 18, 2026).
What is the net profit margin of Z74?
The net profit margin of Singapore Telecommunications Limited is about 39.3%, meaning it keeps roughly 39.3% of revenue as net income. Based on the latest reported figures.
Does Singapore Telecommunications Limited pay a dividend?
Singapore Telecommunications Limited currently shows a dividend yield of about 4.28% 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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