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Zegona Communications Plc (ZEG) fair value: what the stock is really worth

As of Oct 30, 2026: fair value (intrinsic value) of Zegona Communications Plc stock £52.98, price £17.66, upside +200.0%, quality 38 out of 100. Rating: strongly undervalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

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Communication Services GB · ISIN GB00BVGBY890

ZC Zegona Communications Plc logo Thin data Nov 2, 2026

Zegona Communications Plc

ZEG · LSE
Cheap, value-trap risk

The stock costs 67% less than our calculation considers fair.

Fair value £52.98 · Strongly undervalued (67%)
Generates free cash flow
Last quarter vs. a year ago: revenue +49%, profit +26%.
Mixed Growth (revenue YoY +50.4 %/yr in EUR)
Negative equity (buybacks among others)
Mixed vs. peers (5/10)
Insider activity 40/100
Quality 38/100
Loss-making · -5.2% net margin (TTM)
Narrow moat 26/100 · thin data
Thin data
Data corrected by AI research

What runs behind every stock

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

Price vs Fair Value

£18.70 £0.2757 Fair Value £52.98 Jun 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 2, 2026.

How to read this chart

60‑month range £0.2757 – £18.70 · fair‑value band £32.53 – £92.65 · the £17.66 price screens below the £52.98 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 2, 2026.

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Company profile

Zegona Communications plc provides integrated telecommunications services in Spain. The company offers broadband, mobile, TV, voice, data, and other value-added products and services. It serves business-to-consumer and business-to-business markets.

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The company was incorporated in 2015 and is based in London, the United Kingdom. Zegona Communications plc is a subsidiary of Ejlshm Funding Limited.

Stock analysis

Zegona Communications Plc (ZEG) currently trades at £17.66, while our model-based Fair Value estimate is £52.98, implying the stock looks roughly 66.7% undervalued today.

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Valuation

Bull case: the DCF Models group reads highest at a median of £69.71 per share, and 9 of the 9 models we run sit above the £17.66 price.

Bear case: the Multiples group reads lowest at £27.63, and 0 of the 9 models stay below the price. Data coverage for this calculation is low.

Scenario range: £32.53 (bear) to £92.65 (bull), the price of £17.66 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 38/100 (below-average quality), in the Communication Services sector.

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

Zegona Communications Plc reported revenue of €3.6B in FY2026 versus €0 in FY2021. Reported net income was −€189M in FY2026.

Key figures

Market cap £4.0B Mid · P/E ratio 179.4 · P/S ratio 1.05 · EPS (TTM) £−0.2600 · Net margin −5.2% · Return on equity −10.3% · Return on assets (EBIT) −48.4% · Operating margin 10.0%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 26 out of 100 (low confidence).

What moves the price

The share trades about 6% below its 52-week high and 70% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Communication Services peers we cover trades at 55% fair-value upside, at 200%, ZEG screens cheaper than that median.

Fair Value models

Bear £32.53 Fair Value £52.98 Bull £92.65
Price £17.66 · Upside +200.0%
Capped: our models arrive at a very high value here. We deliberately show a more cautious Fair Value.
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. 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. Coverage ⓘCoverage = 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.
Best data coverage
FCF DCF £82.01 £118.84 £225.95 70
Growth DCF £76.07 £128.58 £210.61 69
5Y EBITDA Exit £42.80 £69.71 £121.91 66
All 9 models by family
DCF Models
FCF DCF £82.01 £118.84 £225.95 70
Owner Earnings £22.13 £54.24 £109.75 64
5Y Revenue Exit £26.79 £37.41 £58.24 65
5Y EBITDA Exit £42.80 £69.71 £121.91 66
10Y Revenue Exit £47.31 £78.52 £87.06 62
10Y EBITDA Exit £57.41 £107.53 £184.66 59
Multiples
EV/EBITDA £16.82 £27.63 £38.45 65
Growth DCF
Growth DCF £76.07 £128.58 £210.61 69
Rev-Margin DCF £29.59 £42.00 £67.90 65

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Quality Score breakdown

Overall quality 38/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 21
How much profit the company makes from its sales and capital
Quality Growth 83
Are margins and returns getting better?
Cashflow 89
Do the profits arrive as real cash?
Financial strength 7
Debt, balance sheet and risk of trouble
Investment 5
Does it invest with discipline instead of growing at any price?
Low Volatility 26
How calm the share price moves, does not count
Price momentum 71
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 94
Distance to the 52-week high, does not count
New shares 50
Buys back shares or issues new ones?

Open the full quality analysis →

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. 52/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+50.4%
Revenue growth 11 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.
+45.7%
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.
−11.2% (2015) → 5.6% (2026)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: fiscal 2026 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 and less 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).
−13.4%
The company could shrink this much every year for the next five years and today's price would still be justified.
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.
+1.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (figures in EUR, euro area: IMF forecast 2.2% a year to 2030, 2.6% from 2016 to 2025) that is about −15.2% a year for the price and −0.7% for the forecasts.
Forecast 2027 (sales)+1.6%
Forecast 2028 (sales)+1.4%
Projected 2029 (sales)+1.4%
Projected 2030 (sales)+1.5%
Projected 2031 (sales)+1.6%

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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 · 231 stocks

Beats the industry median on 5/10 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 38 · Bottom 25%
Fair Value upside +200.0% · Top 25%
Profitability
Return on equity (12 months) Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
Return on assets −2.4% · Bottom 25%
Net margin (12 months) −5.2% · Bottom 25%
Operating margin (12 months) 10.0% · Below median
Growth and dividend
Revenue growth (quarter YoY) 48.6% · Top 25%
Balance sheet
Debt / equity Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.

Valuation Multiplesvs Telecom Services median · lower = cheaper

P/E (12 months) 179.4× · Priciest 25%
P/B Negative equity ⓘThe company's equity is below zero, for example after large share buybacks. A ratio to negative equity has no meaning, so we show no number here and do not rank it against the peer group.
P/S (12 months) 1.34× · Cheaper than median
Price / free cash flow 2.6× · Cheapest 25%
EV/EBITDA 6.4× · Cheaper than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)100 · sector 44
FUTURE (revenue growth)100 · sector 19
PAST (return on equity)0 · sector 33
HEALTH (low debt)0 · sector 83
DIVIDEND (yield)0 · sector 72

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 Compare
Comcast Corporation CMCSA $23.22 $69.66 +200% vs ZEG
T-Mobile US, Inc TMUS $156.44 $272.88 +74% vs ZEG
AT&T Inc T $21.41 $34.27 +60% vs ZEG
China Mobile Limited 0941 HK$80.00 HK$126.95 +59% vs ZEG
Verizon Communications Inc VZ $44.73 $69.14 +55% vs ZEG
China Telecom Corporation 601728 ¥7.01 ¥8.36 +19% vs ZEG
Bharti Airtel Limited BHARTIARTL ₹1,974 ₹1,702 −14% vs ZEG
Saudi Telecom Company 7010 41.34 SAR 32.45 SAR −22% vs ZEG
Swisscom AG SCMN CHF 699.50 CHF 505.18 −28% vs ZEG
Singapore Telecommunications Limited Z74 4.13 SGD 2.16 SGD −48% vs ZEG

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Cite: Fair Value Calculator (2026). "Zegona Communications Plc Fair Value". https://www.fairvalue-calculator.com/stock/ZEG

Frequently asked questions

Is Zegona Communications Plc (ZEG) overvalued or undervalued?
As of Nov 2, 2026, our model estimates a fair value of £52.98 versus a price of £17.66, about +200% upside (undervalued).
What is the fair value of ZEG?
Our model-based fair value for Zegona Communications Plc is £52.98 (as of Nov 2, 2026), built from audited fundamentals. The current price: £17.66.
What is the quality score of ZEG?
Zegona Communications Plc has a Quality Score of 38/100. 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 Zegona Communications Plc (ZEG)?
Our model-based price target is the fair value of £52.98 (as of Nov 2, 2026) from 9 valuation models. Cautious scenario £32.53, optimistic scenario £92.65. It is a calculation from audited fundamentals, not an analyst target.
What is the Zegona Communications Plc stock forecast for 2026?
Our models put fair value at £52.98, about +200% upside versus a price of £17.66 (undervalued). Cautious scenario £32.53, optimistic scenario £92.65. The calculation is refreshed regularly with new filings.
What is the revenue of Zegona Communications Plc (ZEG)?
Zegona Communications Plc reported trailing-twelve-month revenue of about €3.6B (latest available figure, as of Nov 2, 2026).
What growth is priced into Zegona Communications Plc (ZEG)?
For today's price to be fair in a discounted-cash-flow model, Zegona Communications Plc would have to grow free cash flow by -13.4 % per year for five years (discount rate 12.8 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 10 years revenue grew +38.4 % per year. As of Nov 2, 2026.
What discount rate (WACC) does the fair value of ZEG use?
Our models discount Zegona Communications Plc at 12.8 %: a base by market capitalisation (mid), damped by beta 3.39, country premium for United Kingdom. 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 Zegona Communications Plc that is -13.4 % per year a year over ten years, using the same discount rate (12.8 %) and the same formula as our fair value.
How much growth has Zegona Communications Plc (ZEG) delivered so far?
Over the past 10 years revenue at Zegona Communications Plc grew +38.4 % a year. The price currently implies -13.4 % 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 Zegona Communications Plc (ZEG) growing?
The median revenue growth in the sector is +3.7 % a year. That is the yardstick for the growth priced into Zegona Communications Plc (-13.4 % 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 Zegona Communications Plc (ZEG)?
The free-cash-flow yield on the price is 38.24 %: that much free cash flow Zegona Communications Plc produces per unit of market value. When it exceeds the discount rate of our models (12.8 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Zegona Communications Plc (ZEG)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Zegona Communications Plc it is £52.98 per share (as of Nov 2, 2026), against a price of £17.66. It is the blended result of 9 valuation models (cash flow, earnings, asset, dividend).
Is Zegona Communications Plc stock overvalued or undervalued in 2026?
As of Nov 2, 2026, ZEG trades below its calculated fair value: price £17.66, fair value £52.98, a gap of about +200% (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 ZEG?
No. The price is what the market pays today (£17.66); the fair value is what the company's own numbers justify (£52.98). For Zegona Communications Plc the two are £35.32 per share apart. That gap is exactly why we show both numbers side by side.
How much is Zegona Communications Plc worth?
The market values Zegona Communications Plc at about £4.0B (market capitalisation, as of Nov 2, 2026). Per share that is £17.66; our models calculate a fair value of £52.98 per share.
What do the bullish and bearish scenarios say about ZEG?
Our models span a range for Zegona Communications Plc: cautious scenario £32.53, base £52.98, optimistic £92.65 per share (as of Nov 2, 2026, price £17.66). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of ZEG?
Zegona Communications Plc trades at a price-to-earnings ratio of 179.4 (as of Nov 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of £52.98 is built from several models across several years. Other multiples: P/S 1.3, EV/EBITDA 6.4.
How solid is the balance sheet of Zegona Communications Plc (ZEG)?
Balance-sheet figures for Zegona Communications Plc (as of Nov 2, 2026): negative equity, so no return on equity and no debt-to-equity ratio. They feed the Quality Score of 38/100, which measures business quality independently of the share price.
How far is ZEG from its 52-week high?
Zegona Communications Plc trades at £17.66, about 6% below its 52-week high of £18.70 and 70% above the low of £10.38 (as of Oct 30, 2026). Distance from the high says nothing about value: that is what the fair value of £52.98 is for.
Which stocks are comparable to Zegona Communications Plc?
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 Zegona Communications Plc stock attractive at the current price?
The data as of Nov 2, 2026: price £17.66, calculated fair value £52.98 (+200%), Quality Score 38/100, from 9 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 ZEG calculated?
We run Zegona Communications Plc through 9 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 £52.98, 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 14.9 % above its aggregate fair value. Zegona Communications Plc currently trades 67 % 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 Zegona Communications Plc (ZEG)?
The closing price on Oct 30, 2026 was £17.66. Our model-based fair value is £52.98, about +200% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Zegona Communications Plc right now?
The large discount to fair value meets weak quality (38/100). That raises the risk this is a value trap rather than a bargain. The price is below even our cautious bear case (£32.53). The market is more pessimistic than our downside scenario. The model range is unusually wide (£32.53 to £92.65). The outcome hinges heavily on assumptions, so read the point estimate with caution. The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.

Key figures of Zegona Communications Plc

How large is the market capitalisation of Zegona Communications Plc (ZEG)?
The market capitalisation of Zegona Communications Plc is £4.0B. 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 Zegona Communications Plc (ZEG)?
The price-to-sales ratio of Zegona Communications Plc is 1.05 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Zegona Communications Plc (ZEG)?
Earnings per share at Zegona Communications Plc are £−0.2600 (price ÷ EPS = P/E 179.4). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Zegona Communications Plc (ZEG)?
The net margin of Zegona Communications Plc is −5.2% (last twelve months). 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 Zegona Communications Plc (ZEG)?
The return on equity (ROE) of Zegona Communications Plc is −10.3% (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 Zegona Communications Plc (ZEG)?
On an EBIT basis the return on assets of Zegona Communications Plc is −48.4% (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 Zegona Communications Plc (ZEG)?
The operating margin of Zegona Communications Plc is 10.0% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Zegona Communications Plc (ZEG)?
Revenue at Zegona Communications Plc is growing +48.6% versus a year earlier. 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 Zegona Communications Plc (ZEG)?
Earnings per share at Zegona Communications Plc are growing +25.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Zegona Communications Plc (ZEG) carry?
The net debt of Zegona Communications Plc is €4.2B (fiscal year 2026, ≈ 2.3 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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