SPK.NZ
Spark New Zealand Ltd
Price:
2.21
NZD
Volume:
1,489,635
New Zealand | Diversified Telecommunication Services
Discounted Cash Flow
Trading Multiples
Peter Lynch Fair Value
Earnings Power Value
Dividend Discount Model
WACC
SPK.NZ DCF Valuation - Growth Exit 5Y
24.9 %
Upside
What is the DCF valuation of SPK.NZ?
The Discounted Cash Flow (DCF) valuation of Spark New Zealand Ltd (SPK.NZ) is 2.76 NZD. With the latest stock price at 2.21 NZD, the upside of Spark New Zealand Ltd based on DCF is 24.9%.
Is SPK.NZ a buy or a sell?
Based on the latest price of 2.21 NZD and our DCF valuation, Spark New Zealand Ltd (SPK.NZ) is a buy. Buying SPK.NZ stocks now will result in a potential gain of 24.9%.
| Range | Selected | |
| WACC / Discount Rate | 6.4% - 8.5% | 7.4% |
| Long-term Growth Rate | 0.5% - 1.5% | 1.0% |
| Fair Price | 2.01 - 4 | 2.76 |
| Upside | -9.2% - 81.0% | 24.9% |
2.21 NZD
Stock Price
2.76 NZD
Fair Price
| (NZD in millions) | Projections | |||||
| 06-2024 | 06-2025 | 06-2026 | 06-2027 | 06-2028 | 06-2029 | |
| Revenue | 3,759 | 3,790 | 3,819 | 3,907 | 4,016 | 4,162 |
| % Growth | 3% | 1% | 1% | 2% | 3% | 4% |
| Cost of goods sold | (1,822) | (1,837) | (1,851) | (1,894) | (1,946) | (2,017) |
| % of Revenue | 48% | 48% | 48% | 48% | 48% | 48% |
| Selling, G&A expenses | (792) | (799) | (805) | (823) | (846) | (877) |
| % of Revenue | 21% | 21% | 21% | 21% | 21% | 21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| % of Revenue | 0% | 0% | 0% | 0% | 0% | 0% |
| Net interest & other expenses | (631) | (636) | (641) | (656) | (674) | (699) |
| % of Revenue | 17% | 17% | 17% | 17% | 17% | 17% |
| Tax expense | (198) | (153) | (154) | (157) | (162) | (168) |
| Tax rate | 39% | 29% | 29% | 29% | 29% | 29% |
| Net profit | 316 | 366 | 368 | 377 | 387 | 402 |
| % Margin | 8% | 10% | 10% | 10% | 10% | 10% |