Saudi Telecom (7010) fair value: what the stock is really worth
As of Oct 22, 2026: fair value (intrinsic value) of Saudi Telecom stock SAR 32.43, price SAR 40.82, upside -20.6%, quality 61 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 22, 2026.
How to read this chart
60‑month range 25.15 SAR – 44.72 SAR · fair‑value band 20.14 SAR – 46.31 SAR · the 40.82 SAR price screens above the 32.43 SAR fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 22, 2026.
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Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally.
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The company establishes, manages, operates, and maintains fixed and mobile telecommunication networks, systems, and infrastructures; delivers, provides, maintains, and manages diverse telecommunication and information technology (IT) services; prepares, plans, and studies for technical, financial, and administrative aspects of telecommunication and IT services; expands and develops telecommunication networks, systems, and infrastructure; offers transfer of internet services; and wholesales and retails, imports, exports, purchases, owns, leases, manufactures, promotes, sells, develops, designs, setups, and maintains devices, equipment, and components.
It also provides consultancy services; integrated communication and information technology solutions, including telecom, IT services, managed services, cloud services, and internet of things, etc.; information-based systems and technologies; financial and managerial support and other services; development, training, asset management, and other related services; solutions for decision support, business intelligence, and data investment; supply chain and other related services; and digital banking and cybersecurity services.
In addition, the company engages in the selling, buying, leasing, managing, developing, and maintenance of real estate properties; and construction, maintenance, and repair of telecommunication, and radar stations and towers.
Saudi Telecom Company was founded in 1998 and is headquartered in Riyadh, the Kingdom of Saudi Arabia.
Stock analysis
Saudi Telecom (7010) currently trades at 40.82 SAR, while our model-based Fair Value estimate is 32.43 SAR, 20.6% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Dividend Discount group reads highest at a median of 61.81 SAR per share, and 10 of the 25 models we run sit above the 40.82 SAR price.
Bear case: the Asset-Based group reads lowest at 8.87 SAR, and 15 of the 25 models stay below the price. Data coverage for this calculation is high.
Scenario range: 20.14 SAR (bear) to 46.31 SAR (bull), the price of 40.82 SAR sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 61/100 (solid quality), in the Communication Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Saudi Telecom reported revenue of 77.8B SAR in FY2025 versus 63.0B SAR in FY2021, a compound +5.4%/yr. Reported net income was 14.8B SAR in FY2025, compounding +7.0%/yr from FY2021.
Key figures
Market cap 204B SAR (≈ $54.3B) Large · P/E ratio 13.8 · P/S ratio 2.57 · EPS (TTM) 2.95 SAR · Dividend yield 5.4% · Net margin 18.5% · Return on equity 17.4% · Return on assets (EBIT) 9.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 68 out of 100 (low confidence).
What moves the price
The share trades about 9% below its 52-week high and 2% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 42% fair-value upside, at −21%, 7010 screens richer than that median.
Fair Value models
Bear20.14 SARFair Value 32.43 SARBull46.31 SAR
Price 40.82 SAR · Upside -20.6%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (0.6082 SAR per share) are deliberately not added.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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.71/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+2.5%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.9%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+5.7%
Start year 2020 (pandemic). Over 10 years: +4.4% a year
Revenue growth 19 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+4.5%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+11.0%
Earnings growth per share plus dividend.
Earnings per share, growth per year+5.6%
Dividend (yield on the price)5.4%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5.6% vs 4.8%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.22% → 19%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+14.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+4.5%
Yearly sales growth analysts expect, extended to five years.
After inflation (Saudi Arabia: IMF forecast 2.1% a year to 2030, 1.7% from 2016 to 2025) that is about +12.3% a year for the price and +2.4% for the forecasts.
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Telecom Services · 240 stocks
Beats the industry median on 9/14 measures
Overall it ranks above its industry peers.
Valuation
Quality Score61 · Above median
Fair Value upside−20.6% · Below median
Profitability
Return on equity (12 months)17.4% · Above median
Return on assets9.4% · Top 25%
Net margin (12 months)18.5% · Top 25%
Operating margin (12 months)18.8% · Above median
Growth and dividend
Revenue growth (quarter YoY)3.7% · Above median
Dividend yield (12 months)5.4% · Above median
Balance sheet
Debt / equity0.17× · Below median
Valuation Multiplesvs Telecom Services median · lower = cheaper
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Cite: Fair Value Calculator (2026). "Saudi Telecom Fair Value". https://www.fairvalue-calculator.com/stock/7010
Frequently asked questions
Is Saudi Telecom (7010) overvalued or undervalued?
As of Oct 22, 2026, our model estimates a fair value of 32.43 SAR versus a price of 40.82 SAR, about −21% upside (overvalued).
What is the fair value of 7010?
Our model-based fair value for Saudi Telecom is 32.43 SAR (as of Oct 22, 2026), built from audited fundamentals. The current price: 40.82 SAR.
What is the quality score of 7010?
Saudi Telecom has a Quality Score of 61/100. 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 price target for Saudi Telecom (7010)?
Our model-based price target is the fair value of 32.43 SAR (as of Oct 22, 2026) from 25 valuation models. Cautious scenario 20.14 SAR, optimistic scenario 46.31 SAR. It is a calculation from audited fundamentals, not an analyst target.
What is the Saudi Telecom stock forecast for 2026?
Our models put fair value at 32.43 SAR, about −21% upside versus a price of 40.82 SAR (overvalued). Cautious scenario 20.14 SAR, optimistic scenario 46.31 SAR. The calculation is refreshed regularly with new filings.
What is the revenue of Saudi Telecom (7010)?
Saudi Telecom reported trailing-twelve-month revenue of about 79.3B SAR (latest available figure, as of Oct 22, 2026).
Does Saudi Telecom pay a dividend?
Saudi Telecom currently shows a dividend yield of 5.39% relative to its recent price (as of Oct 22, 2026).
What growth is priced into Saudi Telecom (7010)?
For today's price to be fair in a discounted-cash-flow model, Saudi Telecom would have to grow free cash flow by +14.6 % per year for five years (discount rate 8.6 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +5.7 % per year. As of Oct 22, 2026.
What discount rate (WACC) does the fair value of 7010 use?
Our models discount Saudi Telecom at 8.6 %: a base by market capitalisation (large), damped by beta 0.18, country premium for Saudi Arabia. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Saudi Telecom that is +14.6 % per year a year over ten years, using the same discount rate (8.6 %) and the same formula as our fair value.
How much growth has Saudi Telecom (7010) delivered so far?
Over the past 5 years revenue at Saudi Telecom grew +5.7 % a year. The price currently implies +14.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Saudi Telecom (7010) growing?
The median revenue growth in the sector is +3.3 % a year. That is the yardstick for the growth priced into Saudi Telecom (+14.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Saudi Telecom (7010)?
The free-cash-flow yield on the price is 3.18 %: that much free cash flow Saudi Telecom produces per unit of market value. When it exceeds the discount rate of our models (8.6 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Saudi Telecom (7010)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Saudi Telecom it is 32.43 SAR per share (as of Oct 22, 2026), against a price of 40.82 SAR. It is the blended result of 25 valuation models (cash flow, earnings, asset, dividend).
Is Saudi Telecom stock overvalued or undervalued in 2026?
As of Oct 22, 2026, 7010 trades above its calculated fair value: price 40.82 SAR, fair value 32.43 SAR, a gap of about −21% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 7010?
No. The price is what the market pays today (40.82 SAR); the fair value is what the company's own numbers justify (32.43 SAR). For Saudi Telecom the two are 8.39 SAR per share apart. That gap is exactly why we show both numbers side by side.
How much is Saudi Telecom worth?
The market values Saudi Telecom at about 204B SAR (market capitalisation, as of Oct 22, 2026). Per share that is 40.82 SAR; our models calculate a fair value of 32.43 SAR per share.
What do the bullish and bearish scenarios say about 7010?
Our models span a range for Saudi Telecom: cautious scenario 20.14 SAR, base 32.43 SAR, optimistic 46.31 SAR per share (as of Oct 22, 2026, price 40.82 SAR). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 7010?
Saudi Telecom trades at a price-to-earnings ratio of 13.8 (as of Oct 22, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of 32.43 SAR is built from several models across several years. Other multiples: P/B 2.4, P/S 2.6, EV/EBITDA 9.2.
How solid is the balance sheet of Saudi Telecom (7010)?
Balance-sheet figures for Saudi Telecom (as of Oct 22, 2026): return on equity 17.4%, debt of 0.17 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is 7010 from its 52-week high?
Saudi Telecom trades at 40.82 SAR, about 9% below its 52-week high of 44.72 SAR and 2% above the low of 40.18 SAR (as of Oct 22, 2026). Distance from the high says nothing about value: that is what the fair value of 32.43 SAR is for.
Which stocks are comparable to Saudi Telecom?
From the same area (Communication Services) we also value China Mobile Limited, Verizon Communications Inc, T-Mobile US, Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Saudi Telecom stock attractive at the current price?
The data as of Oct 22, 2026: price 40.82 SAR, calculated fair value 32.43 SAR (−21%), Quality Score 61/100, from 25 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 7010 calculated?
We run Saudi Telecom through 25 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of 32.43 SAR, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.2 % above its aggregate fair value. Saudi Telecom itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Saudi Telecom (7010)?
The closing price on Oct 22, 2026 was 40.82 SAR. Our model-based fair value is 32.43 SAR, about −21% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Saudi Telecom right now?
Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (20.14 SAR to 46.31 SAR) leaves room in how you read the outcome.
Where does the earnings growth of Saudi Telecom (7010) come from?
Earnings per share at Saudi Telecom grew +6.8 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.7 %, EBIT margin −1.9 %, tax rate +0.4 %, residual (interest, one-offs) +3.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Saudi Telecom
How large is the market capitalisation of Saudi Telecom (7010)?
The market capitalisation of Saudi Telecom is 204B SAR (≈ $54.3B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Saudi Telecom (7010)?
The price-to-sales ratio of Saudi Telecom is 2.57 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Saudi Telecom (7010)?
Earnings per share at Saudi Telecom are 2.95 SAR (price ÷ EPS = P/E 13.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Saudi Telecom (7010)?
The dividend yield of Saudi Telecom is 5.4% (payout 74.6%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Saudi Telecom (7010)?
The net margin of Saudi Telecom is 18.5% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Saudi Telecom (7010)?
The return on equity (ROE) of Saudi Telecom is 17.4% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Saudi Telecom (7010)?
On an EBIT basis the return on assets of Saudi Telecom is 9.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Saudi Telecom (7010)?
The operating margin of Saudi Telecom is 18.8% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Saudi Telecom (7010)?
Revenue at Saudi Telecom is growing +3.7% versus a year earlier (3y avg +4.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Saudi Telecom (7010)?
Earnings per share at Saudi Telecom are growing −5.3% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Saudi Telecom (7010) carry?
The net debt of Saudi Telecom is 5.8B SAR (fiscal year 2025, ≈ 0.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Oct 22, 2026