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Morning star report

Valuation as of 25 May 2024Morningstar affirms a 5-star quantitative rating forTelstra Group. We calculate this outcome using thecompany's underlying model-driven valuation anduncertainty scores.The stock's last closing price was 3.45, a discountof 16.36% to its Quantitative Fair Value estimate of4.12. The stock has been trading between a 17.5%discount and 3.42% premium to its quantitative fairvalue over the past year. The stock's price to fairvalue ratio is at the 63rd percentile in our globalequity coverage universe for this methodology andat the 73rd percentile relative to its peers in thecommunication services sector.Telstra Group furthermore holds a High quantitativeuncertainty rating.The company's quantitative star rating dates toafter 05/22/2024, before which it was 4-star. Similarly,the firm's uncertainty rating changed fromMedium to High after 04/22/2024.We examine the financials and market statistics forTelstra Group to determine these ratings. Its enterprisevalue-to-market value ratio is 1.38 and its annualizedtrailing 12-month volatility is 11.83%.These fall at the 74th and 5th percentiles in the equity universe and at the 70th and 5th in the communicationservices sector, respectively.

Fundamentals as of 24 May 2024Telstra Group reports earnings per share of 0.18. Itsreturn on invested capital is 7.49%. The companymaintains a dividend yield of 4.77%, paying out96.59% of earnings. These values are calculatedover a trailing 12-month period.As of last market close, Telstra Group has a price to-earnings ratio of 19.66, falling at the 55th percentilein its sector (where a lower percentilemeans a lower ratio) and ranging between 19.43and 27.8 over the past year. The company's price to-free cash flow ratio is 13.36, falling at the 50thpercentile in its sector and ranging between 13.2and 16.26 over the past year.