PHTCF
PLDT Inc.
$19.00
Stable Earnings Power
65%
P/Adj-EPS × Normalized Multiple
Moderate
·
Conviction
Undervalued
Trading 38.9% below fair value
You pay
$19.00
Bear
$24.86
Fair
$31.08
Bull
$37.29
Bear
$24.86
+30.8%
$2.07 × 12x P/E
Fair
$31.08
+63.6%
$2.07 × 15x P/E
Bull
$37.29
+96.3%
$2.07 × 18x P/E
Adjust Assumptions
15.0x
2.07$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
9.2x
Summary
Applying a 15x P/E to adjusted EPS of $2.07, the base-case value is $31.08 per share.
Warnings
The company pays out 150% of its profits as dividends. That leaves little cushion — the dividend could be cut if business slows down.
Financial statements were converted from PHP into USD using USDPHP at 0.0157 USD per PHP.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples