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China Telecom Corp Ltd (601728) Fair Value & Analysis

Communication Services · CN · Market cap 550B CNY (≈ $82.1B) · ISIN CNE100004QG0

What is China Telecom Corp Ltd really worth?

CT China Telecom Corp Ltd 601728 · SHG
Price¥6.38
Fair Value¥8.36
Upside+31.0%
Quality59/100

A solid business, trading 24% below our fair value of ¥8.36.

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Strengths

Low debt · generates free cash flow
Ranks above peers (9/15)

Risks

!Mixed Growth (revenue 5y +5.9 %/yr)
!Thin margins · 6.1% net margin
!Narrow moat 39/100
!Evidence only low, so the estimate is less certain
!Weak on past: 27 out of 100

For context

·4.26% dividend yield
Evidence: Low Range ¥6.39 – ¥10.32

Fair value as of: Aug 13, 2026

From 26 valuation models · updated 22 days ago

Share price +2.4% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large gap to fair value rests on thin data (low evidence): fewer applicable models and a shorter history. Read it with extra caution.
  • Solid quality (59/100) at a price below fair value, the discount is the argument here, not the business quality.

Price vs Fair Value (5 years)

¥8.17 ¥3.12 Fair Value ¥8.36 Aug 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range ¥3.12 – ¥8.17 · fair‑value band ¥6.39 – ¥10.32 · the ¥6.38 price screens below the ¥8.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

China Telecom Corp Ltd (601728) currently trades at ¥6.38, while our model-based Fair Value estimate is ¥8.36, implying the stock looks roughly 23.7% undervalued today. The Quality Score stands at 59/100 (solid quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of ¥11.81 per share, and 19 of the 26 models we run sit above the ¥6.38 price. Bear case: the Earnings-Based group reads lowest at ¥2.36, and 7 of the 26 models stay below the price. Evidence for this calculation is low.

Over the trailing twelve months, China Telecom Corp Ltd generated revenue of 520B CNY at a net margin of 6.1%. Revenue declined 2.6% year over year. It earns a return on equity of 6.7%. The balance sheet holds a net cash position of 38.6B CNY. Fundamentals as of Aug 13, 2026

Our scenario range runs from ¥6.39 (bear case) to ¥10.32 (bull case); at ¥6.38, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 14% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 14% fair-value upside, at 31%, 601728 screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly ¥0.0596 per share, which is 0.7 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence ¥9.30 ¥13.73 ¥20.64 80
Growth DCF ¥9.51 ¥13.53 ¥19.49 78
Owner Earnings ¥11.14 ¥16.58 ¥25.06 76
All 26 models by family
DCF Models
FCF DCF best evidence ¥9.30 ¥13.73 ¥20.64 80
Owner Earnings ¥11.14 ¥16.58 ¥25.06 76
5Y Revenue Exit ¥6.76 ¥9.38 ¥12.63 73
5Y EBITDA Exit ¥13.72 ¥22.16 ¥31.89 75
5Y P/E Exit ¥8.08 ¥11.81 ¥15.62 71
10Y Revenue Exit ¥7.44 ¥10.05 ¥13.35 68
10Y EBITDA Exit ¥12.09 ¥19.03 ¥28.12 68
10Y P/E Exit ¥8.44 ¥11.76 ¥15.65 64
Earnings-Based
Graham-Dodd ¥2.91 ¥8.16 ¥10.73 65
Lynch FV ¥1.65 ¥2.36 ¥3.06 61
PEG = 1.0 ¥1.65 ¥2.36 ¥3.06 57
EPV ¥4.90 ¥5.55 ¥6.13 74
Dividend Discount
Gordon GGM ¥3.11 ¥6.78 ¥11.41 65
DDM Multi-Stage ¥3.11 ¥5.01 ¥7.07 66
Multiples
P/E Multiple ¥7.05 ¥9.40 ¥11.76 63
P/S Multiple ¥5.45 ¥7.27 ¥9.08 58
P/B Multiple ¥5.45 ¥7.27 ¥9.08 55
EV/EBIT ¥7.10 ¥9.07 ¥11.03 66
EV/EBITDA ¥17.92 ¥23.49 ¥29.06 67
EV/Revenue ¥5.68 ¥7.59 ¥9.51 54
Asset-Based
NCAV (Graham) ¥2.97 ¥3.98 ¥5.94 54
Growth DCF
Growth DCF ¥9.51 ¥13.53 ¥19.49 78
Rev-Margin DCF ¥6.76 ¥9.47 ¥12.53 73
Economic Profit
Residual Income ¥4.96 ¥5.29 ¥5.79 76
ROIC Compounder ¥4.90 ¥5.55 ¥6.34 72
Growth Earnings
Growth-Adj P/E ¥5.61 ¥8.02 ¥10.42 67

Widest divergence: DCF Models (¥11.81) versus Earnings-Based (¥2.36). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 16.7 as of Jul 18, 2026
P/S ratio 1.06 P/E × margin
EPS (TTM) ¥0.3600 price ÷ EPS = P/E 16.7
Dividend yield 4.3% payout 75.6%
Net margin 6.3% FY2025
Return on equity 6.7% TTM
More key figures
Profitability
Return on assets (EBIT) 4.3% avg 5y
Operating margin 6.2% TTM
Growth
Revenue (TTM) 520B CNY TTM
Revenue growth (YoY) −2.6% 3y avg +2.8%
EPS growth (YoY) −17.4%
Balance sheet & cash flow
Free cash flow 53.8B CNY FY2025
Net cash 38.6B CNY FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 59/100

Of which business quality 59 · Market factors (momentum, volatility) 56

Profitability 35
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 70
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 89
Calm price path (market factor)
Momentum 44
Price trend over the last 3–12 months (market factor)
52W Momentum 39
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

China Telecom Corporation Limited, together with its subsidiaries, provides mobile communications, wireline and satellite communications, internet access, cloud computing and computing power, AI, big data, quantum, ICT integration in the People's Republic of China.

Full company description

China Telecom Corporation Limited, together with its subsidiaries, provides mobile communications, wireline and satellite communications, internet access, cloud computing and computing power, AI, big data, quantum, ICT integration in the People's Republic of China. The company offers mobile communications; wireline and smart family; industrial digitalisation; and other services. The company also develops and deploys industry-specific large models and digital platforms, including the Xingchen platform series, to support digital transformation in sectors such as manufacturing, education, healthcare, government, and smart city management. The company was incorporated in 2002 and is based in Beijing, China. China Telecom Corporation Limited operates as a subsidiary of China Telecom Group Co., Ltd.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

China Telecom Corp Ltd reported revenue of 523B CNY in FY2025 versus 440B CNY in FY2021, a compound +4.4%/yr. Reported net income was 33.2B CNY in FY2025, compounding +6.3%/yr from FY2021.

Growth Quality 65/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
523B CNY
Latest YoY
−1.2%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+2.8%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+5.9%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.0%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+11.4% (7.1 + 4.3)
Revenue +4.4%/yr
FY21 440B CNY
FY22 481B CNY
FY23 514B CNY
FY24 529B CNY
FY25 523B CNY
Net income +6.3%/yr
FY21 25.9B CNY
FY22 27.6B CNY
FY23 30.4B CNY
FY24 33.0B CNY
FY25 33.2B CNY
Character of growth · EPS growth decomposed (2014-2025) +4.9 % p.a.
Revenue per share +3.6 %

of which total revenue +5.0 % · buybacks/dilution −1.4 %

EBIT margin −1.1 %
Tax rate +0.3 %
Residual (interest, one-offs) +2.1 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "China Telecom Corp Ltd Fair Value". https://www.fairvalue-calculator.com/stock/601728

Peer Group

Telecom Services · 248 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 59 · Above median
Fair Value upside +31% · Above median
Return on equity (TTM) 7% · Below median
Return on assets 3% · Below median
Net margin (TTM) 6% · Above median
Operating margin (TTM) 6% · Below median
Revenue growth −3% · Below median
Dividend yield (TTM) 4.3% · Above median
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 16.7× · Cheaper than median
P/B 1.19× · Cheaper than median
P/S (TTM) 1.06× · Pricier than median
P/FCF 1.5× · Cheaper than median
EV/EBITDA 3.9× · Cheaper than 75% of peers
PEG 3.77× · Pricier than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE75 · sector 28
FUTURE0 · sector 16
PAST27 · sector 28
HEALTH99 · sector 89
DIVIDEND85 · sector 76

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥96.11 ¥109.88 +14%
T-Mobile US, Inc TMUS $177.75 $172.67 −3%
Verizon Communications Inc VZ $49.43 $64.43 +30%
AT&T Inc T $26.01 $43.97 +69%
Bharti Airtel Limited BHARTIARTL ₹1,935 ₹941.48 −51%
Comcast Corporation CMCSA $26.41 $95.42 +261%
América Móvil, S.A. AMX $23.50 $39.45 +68%
Singapore Telecommunications Limited Z77 4.29 SGD 3.03 SGD −29%
Swisscom AG SCMN CHF 627.50 CHF 463.92 −26%
Telstra Group TLS A$4.80 A$3.31 −31%

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Frequently asked questions

Is China Telecom Corp Ltd (601728) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of ¥8.36 versus a price of ¥6.38, about +31% upside (undervalued).
What is the fair value of 601728?
Our model-based fair value for China Telecom Corp Ltd is ¥8.36 (as of Aug 13, 2026), built from audited fundamentals. The current price: ¥6.38.
What is the quality score of 601728?
China Telecom Corp Ltd has a Quality Score of 59/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of China Telecom Corp Ltd (601728)?
China Telecom Corp Ltd reported trailing-twelve-month revenue of about 520B CNY (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 601728?
The net profit margin of China Telecom Corp Ltd is about 6.1%, meaning it keeps roughly 6.1% of revenue as net income. Based on the latest reported figures.
Does China Telecom Corp Ltd pay a dividend?
China Telecom Corp Ltd currently shows a dividend yield of about 4.26% relative to its recent price (as of Aug 13, 2026).
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