The price/operating cash flow metric for Chunghwa Telecom Co Ltd is higher than merely 2.84% of stocks in our set with a positive cash flow.
The volatility of Chunghwa Telecom Co Ltd's share price is greater than that of just 0.04% US stocks with at least 200 days of trading history.
Chunghwa Telecom Co Ltd's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 129.66%, greater than the shareholder yield of 97.63% of stocks in our set.
Stocks that are quantitatively similar to CHT, based on their financial statements, market capitalization, and price volatility, are PPG, FAST, JCI, ODFL, and SNN.
Chunghwa Telecom Company local telephone services, domestic long distance telephone services, broadband access, and related services primarily in Taiwan. The company was founded in 1996 and is based in Taipei, Taiwan.
CHT Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CHT, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Chunghwa Telecom Co Ltd ranked in the 60th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 72% on a DCF basis. The most interesting components of our discounted cash flow analysis for Chunghwa Telecom Co Ltd ended up being:
The company's balance sheet shows it gets 100% of its capital from equity, and 0% of its capital from debt. Its equity weight surpasses that of 98.29% of free cash flow generating stocks in the Communication Services sector.
The business' balance sheet reveals debt to be 0% of the company's capital (with equity being the remaining amount). Approximately just 2.36% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Chunghwa Telecom Co Ltd's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -401.57. This coverage rate is greater than that of just 1% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as CHT, try SJR, CEL, GTT, HCHC, and BCE.
Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today reported its un-audited operating results for the second quarter of 2020. All figures were prepared in accordance with Taiwan-International Financial Reporting Standards ("T-IFRSs") on a consolidated basis.