Telia: Headwinds are too strong
Telia's Q3 operating figures were good and Telia returned to earnings growth. However, macro headwinds are strong and overshadow the good business trend. So, we expect modest earnings growth in coming years. The share’s valuation (2023 P/E 18x and EV/EBIT 16x) has turned tight due to the price drop, lowered estimates and uncertainty. The stock exchange offers more attractive return/risk ratios elsewhere.
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Telia Company
Telia Company is active in the telecom sector. The company delivers a wide range of services within voice, IP and capacity services, mainly through wholly-owned international carrier networks. The customers are found among private customers and corporate customers. Most of the business is done in the Nordic countries, the Baltics, and Europe. The company was formed by a merger of Telia and Sonera. The head office is located in Solna.
Read more on company pageKey Estimate Figures23.10.2022
2021 | 22e | 23e | |
---|---|---|---|
Revenue | 88,342.6 | 90,703.5 | 93,259.4 |
growth-% | -0.95 % | 2.67 % | 2.82 % |
EBIT (adj.) | 9,928.9 | 11,403.2 | 11,498.9 |
EBIT-% (adj.) | 11.24 % | 12.57 % | 12.33 % |
EPS (adj.) | 1.54 | 1.50 | 1.55 |
Dividend | 2.05 | 2.07 | 2.09 |
Dividend % | 5.79 % | 7.25 % | 7.32 % |
P/E (adj.) | 22.96 | 19.03 | 18.39 |
EV/EBITDA | 5.88 | 6.09 | 6.16 |