bug, I remember you from somewhere in the land of HC and we had a lot of similar ideals about reporting season and we always looked at value as an EPS...im curious as to your comment Thi time as I dont agree with it...which is healthy...so I have read the report with a bottle of red and this is what I came up with, be interested in your views... I see Telstra as best placed in the Australian mobile market the company’s headstart on the rollout of 5G infrastructure should see market share gains of lucrative postpaid subscribers. Additionally, product bifurcation through the establishment of sub-brands such asTelstra’s Belong,Boost and these are what I know of should protect higher-quality services from further price degradation. There remain headwinds in the company’s Fixed Broadband business although the NBN rollout is almost complete and management is looking to increase margins to mid-teens through cost reduction programmes. So I bought and will trade the stock price well below our DCF valuation. My DCF valuation or pricing ratio using a 6.1% post tax WACC and I can elaborate on that but you and I have talked about this in the past. I also derive WACC which assumes a risk-free rate of 2.5%, an equity risk premium of 5.5%, a beta of 0.8x, and pre-tax cost of debt of 6.0%. Telstra Corporation (TLS) posted a first-half FY22 underlying operating earnings (EBITDA) of $3.5bn, up 4% on the same period last year and 2% and an underlying net profit of $698m which is better than I thought it would having skimmed over the last report 1/2 wa through my bottle... I think the company delivered another strong performance, growing EBITDA for the second half in a row.....and I don't think it did it through Asset sales done... Reiterated guidance also implied further gains of up to 8.5% for the current half. Growth is being driven solely from the mobile business, with the higher subscriber numbers and growing average revenue per unit (ARPU) despite some accounting impact. Headwinds still remain in the fixed business, with margins continuing to decline and aspirations of mid-teen margins being pushed out to FY25. Notwithstanding the risks in fixed and I dont know of anybody who does still use it... with the stock trading well below a net present value and opportunities for further asset sales, as a bussiness and lets not called it Telstra from a elongated view point... So how is this stock not a pricing ratio going forward of north lets say $4.50 at worst case scenario ???The strong earnings growth was. driven primarily by mobile, which offset NBN-driven declines in the fixed consumer and small business (C&SB) and enterprise data and fair enough you can say they dropped the ball on this. With further pricing growth likely in mobile and cost reductions of $180m to come in fixed in the second half that adds further value I think... The company continued to gain market share with postpaid subscribers increasing 84,000 in the half which I didn't think it would do considering the competition but if anybody can destroy an opposition in any macro environment its Telstra by where numbers and infrastructure. I think Telstra will benefit from immigration and the borders reopening with $200m in lost roaming revenue likely to return. Once again, would be interested in your views...
TLS Price at posting:
$3.94 Sentiment: Buy Disclosure: Held
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