Loading...

You're on the old version of Simply Wall St. We will no longer be supporting this site, so we recommend you switch to our brand new platform.

Telenor

OB:TEL
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TEL
OB
NOK237B
Market Cap
  1. Home
  2. NO
  3. Telecom
Company description

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. The last earnings update was 97 days ago. More info.


Add to Portfolio Compare Print
TEL Share Price and Events
7 Day Returns
0.7%
OB:TEL
-1.6%
Europe Telecom
-2.8%
NO Market
1 Year Returns
0.5%
OB:TEL
1.1%
Europe Telecom
3.9%
NO Market
TEL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Telenor (TEL) 0.7% 5.1% -2.6% 0.5% 27.6% -1%
Europe Telecom -1.6% -1% -3.3% 1.1% -6.3% -24.1%
NO Market -2.8% -0.9% 2% 3.9% 14.5% 24.7%
1 Year Return vs Industry and Market
  • TEL matched the Telecom industry (1.1%) over the past year.
  • TEL underperformed the Market in Norway which returned 3.9% over the past year.
Price Volatility
TEL
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Telenor undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Telenor to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Telenor.

OB:TEL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5%
Perpetual Growth Rate 10-Year NO Government Bond Rate 0.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OB:TEL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NO Govt Bond Rate 0.7%
Equity Risk Premium S&P Global 5.4%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.37
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.367 (1 + (1- 23%) (65.44%))
0.7
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.65% + (0.8 * 5.44%)
5%

Discounted Cash Flow Calculation for OB:TEL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Telenor is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

OB:TEL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (NOK, Millions) Source Present Value
Discounted (@ 5%)
2020 19,045.97 Analyst x10 18,138.67
2021 20,538.45 Analyst x8 18,628.27
2022 21,576.50 Est @ 5.05% 18,637.52
2023 22,381.93 Est @ 3.73% 18,412.26
2024 23,010.42 Est @ 2.81% 18,027.55
2025 23,507.59 Est @ 2.16% 17,539.72
2026 23,908.97 Est @ 1.71% 16,989.39
2027 24,241.35 Est @ 1.39% 16,405.00
2028 24,524.52 Est @ 1.17% 15,806.02
2029 24,772.88 Est @ 1.01% 15,205.51
Present value of next 10 years cash flows NOK173,789.00
OB:TEL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NOK24,772.88 × (1 + 0.65%) ÷ (5% – 0.65%)
NOK572,929.88
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NOK572,929.88 ÷ (1 + 5%)10
NOK351,662.26
OB:TEL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NOK173,789.00 + NOK351,662.26
NOK525,451.26
Equity Value per Share
(NOK)
= Total value / Shares Outstanding
= NOK525,451.26 / 1,422.66
NOK369.34
OB:TEL Discount to Share Price
Calculation Result
Value per share (NOK) From above. NOK369.34
Current discount Discount to share price of NOK166.70
= -1 x (NOK166.70 - NOK369.34) / NOK369.34
54.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Telenor is available for.
Intrinsic value
>50%
Share price is NOK166.7 vs Future cash flow value of NOK369.34
Current Discount Checks
For Telenor to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Telenor's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Telenor's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Telenor's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Telenor's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OB:TEL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in NOK NOK3.85
OB:TEL Share Price ** OB (2020-01-28) in NOK NOK166.7
Europe Telecom Industry PE Ratio Median Figure of 58 Publicly-Listed Telecom Companies 20.74x
Norway Market PE Ratio Median Figure of 144 Publicly-Listed Companies 13.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Telenor.

OB:TEL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OB:TEL Share Price ÷ EPS (both in NOK)

= 166.7 ÷ 3.85

43.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telenor is overvalued based on earnings compared to the Europe Telecom industry average.
  • Telenor is overvalued based on earnings compared to the Norway market.
Price based on expected Growth
Does Telenor's expected growth come at a high price?
Raw Data
OB:TEL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 43.33x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
22.1%per year
Europe Telecom Industry PEG Ratio Median Figure of 32 Publicly-Listed Telecom Companies 1.79x
Norway Market PEG Ratio Median Figure of 107 Publicly-Listed Companies 0.75x

*Line of best fit is calculated by linear regression .

OB:TEL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 43.33x ÷ 22.1%

1.96x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telenor is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Telenor's assets?
Raw Data
OB:TEL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in NOK NOK25.47
OB:TEL Share Price * OB (2020-01-28) in NOK NOK166.7
Europe Telecom Industry PB Ratio Median Figure of 83 Publicly-Listed Telecom Companies 1.82x
Norway Market PB Ratio Median Figure of 240 Publicly-Listed Companies 1.05x
OB:TEL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OB:TEL Share Price ÷ Book Value per Share (both in NOK)

= 166.7 ÷ 25.47

6.54x

* Primary Listing of Telenor.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Telenor is overvalued based on assets compared to the Europe Telecom industry average.
X
Value checks
We assess Telenor's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. Telenor has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Telenor expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Telenor expected to grow at an attractive rate?
  • Telenor's earnings growth is expected to exceed the low risk savings rate of 0.7%.
Growth vs Market Checks
  • Telenor's earnings growth is expected to exceed the Norway market average.
  • Telenor's revenue growth is positive but not above the Norway market average.
Annual Growth Rates Comparison
Raw Data
OB:TEL Future Growth Rates Data Sources
Data Point Source Value (per year)
OB:TEL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 22.1%
OB:TEL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 2.9%
Europe Telecom Industry Earnings Growth Rate Market Cap Weighted Average 14.9%
Europe Telecom Industry Revenue Growth Rate Market Cap Weighted Average 1.9%
Norway Market Earnings Growth Rate Market Cap Weighted Average 19.1%
Norway Market Revenue Growth Rate Market Cap Weighted Average 3.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OB:TEL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in NOK Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OB:TEL Future Estimates Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31 125,532 41,259 16,502 3
2021-12-31 124,158 39,444 15,608 15
2020-12-31 123,007 38,500 14,388 17
2020-01-28
2019-12-31 116,630 33,421 9,833 17
OB:TEL Past Financials Data
Date (Data in NOK Millions) Revenue Cash Flow Net Income *
2019-09-30 113,212 35,408 5,576
2019-06-30 111,316 34,545 9,866
2019-03-31 110,856 37,151 9,002
2018-12-31 110,362 36,394 9,958
2018-09-30 110,898 37,029 12,304
2018-06-30 110,794 37,935 14,071
2018-03-31 111,623 40,473 11,350
2017-12-31 112,069 40,723 10,199
2017-09-30 115,116 41,069 10,707
2017-06-30 118,903 39,833 4,562
2017-03-31 121,497 37,419 6,580
2016-12-31 125,395 39,778 10,404

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Telenor's earnings are expected to grow significantly at over 20% yearly.
  • Telenor's revenue is expected to grow by 2.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OB:TEL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Telenor Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:TEL Future Estimates Data
Date (Data in NOK Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 11.16 11.83 10.50 2.00
2021-12-31 11.22 13.43 9.85 12.00
2020-12-31 10.23 12.20 6.61 15.00
2020-01-28
2019-12-31 6.85 8.36 5.59 12.00
OB:TEL Past Financials Data
Date (Data in NOK Millions) EPS *
2019-09-30 3.85
2019-06-30 6.76
2019-03-31 6.15
2018-12-31 6.76
2018-09-30 8.30
2018-06-30 9.43
2018-03-31 7.58
2017-12-31 6.80
2017-09-30 7.19
2017-06-30 3.04
2017-03-31 4.38
2016-12-31 6.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Telenor is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Telenor's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Telenor has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Telenor performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Telenor's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Telenor's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Telenor's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Telenor's 1-year earnings growth is negative, it can't be compared to the Europe Telecom industry average.
Earnings and Revenue History
Telenor's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Telenor Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OB:TEL Past Revenue, Cash Flow and Net Income Data
Date (Data in NOK Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 113,212.00 5,576.00 6,189.00
2019-06-30 111,316.00 9,866.00 6,189.00
2019-03-31 110,856.00 9,002.00 6,189.00
2018-12-31 110,362.00 9,958.00 6,189.00
2018-09-30 110,898.00 12,304.00 6,412.00
2018-06-30 110,794.00 14,071.00 6,412.00
2018-03-31 111,623.00 11,350.00 6,412.00
2017-12-31 112,069.00 10,199.00 6,412.00
2017-09-30 115,116.00 10,707.00 7,185.00
2017-06-30 118,903.00 4,562.00 7,185.00
2017-03-31 121,497.00 6,580.00 7,185.00
2016-12-31 125,395.00 10,404.00 7,185.00
2016-09-30 127,156.00 5,853.00 7,757.00
2016-06-30 127,743.00 4,842.00 7,757.00
2016-03-31 128,223.00 6,967.00 7,757.00
2015-12-31 128,175.00 3,414.00 7,757.00
2015-09-30 125,128.00 6,035.00 6,176.00
2015-06-30 120,977.00 10,390.00 6,176.00
2015-03-31 117,570.00 9,234.00 6,176.00
2014-12-31 111,443.00 9,077.00 6,176.00
2014-09-30 103,725.00 6,369.00 4,988.00
2014-06-30 101,993.00 7,700.00 4,988.00
2014-03-31 99,741.00 8,648.00 4,988.00
2013-12-31 99,138.00 8,555.00 4,988.00
2013-09-30 102,406.00 13,275.00 5,449.00
2013-06-30 101,706.00 13,008.00 5,449.00
2013-03-31 101,315.00 11,827.00 5,449.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Telenor has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Telenor used its assets less efficiently than the Europe Telecom industry average last year based on Return on Assets.
  • Telenor's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Telenor's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Telenor has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Telenor's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Telenor's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Telenor's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Telenor's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Telenor's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Telenor Company Filings, last reported 3 months ago.

OB:TEL Past Debt and Equity Data
Date (Data in NOK Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 41,356.00 114,087.00 32,287.00
2019-06-30 44,214.00 87,765.00 42,737.00
2019-03-31 57,449.00 62,053.00 25,232.00
2018-12-31 54,455.00 71,497.00 18,883.00
2018-09-30 53,268.00 59,996.00 33,125.00
2018-06-30 52,444.00 71,896.00 18,988.00
2018-03-31 65,861.00 67,535.00 21,363.00
2017-12-31 62,335.00 74,017.00 23,461.00
2017-09-30 59,931.00 75,545.00 30,675.00
2017-06-30 55,536.00 78,006.00 21,734.00
2017-03-31 59,746.00 85,493.00 27,476.00
2016-12-31 55,396.00 86,240.00 24,849.00
2016-09-30 57,274.00 84,250.00 28,970.00
2016-06-30 61,451.00 81,091.00 14,494.00
2016-03-31 66,611.00 75,016.00 15,276.00
2015-12-31 63,127.00 76,055.00 15,001.00
2015-09-30 70,321.00 75,934.00 21,203.00
2015-06-30 72,546.00 67,274.00 13,154.00
2015-03-31 73,848.00 66,753.00 14,385.00
2014-12-31 68,505.00 67,573.00 13,134.00
2014-09-30 69,873.00 62,224.00 14,007.00
2014-06-30 69,961.00 63,586.00 12,648.00
2014-03-31 79,911.00 58,858.00 17,126.00
2013-12-31 77,037.00 57,430.00 12,714.00
2013-09-30 78,242.00 57,958.00 14,554.00
2013-06-30 74,853.00 56,159.00 18,163.00
2013-03-31 81,899.00 47,585.00 11,713.00
  • Telenor's level of debt (275.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (87.8% vs 275.9% today).
  • Debt is well covered by operating cash flow (31%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 9.3x coverage).
X
Financial health checks
We assess Telenor's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Telenor has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Telenor's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.04%
Current annual income from Telenor dividends. Estimated to be 5.63% next year.
If you bought NOK2,000 of Telenor shares you are expected to receive NOK101 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Telenor's pays a higher dividend yield than the bottom 25% of dividend payers in Norway (2.39%).
  • Telenor's dividend is below the markets top 25% of dividend payers in Norway (5.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OB:TEL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
Europe Telecom Industry Average Dividend Yield Market Cap Weighted Average of 50 Stocks 5%
Norway Market Average Dividend Yield Market Cap Weighted Average of 114 Stocks 4.5%
Norway Minimum Threshold Dividend Yield 10th Percentile 1.5%
Norway Bottom 25% Dividend Yield 25th Percentile 2.4%
Norway Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OB:TEL Future Dividends Estimate Data
Date (Data in NOK) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 9.76 1.00
2022-12-31 9.70 6.00
2021-12-31 9.52 16.00
2020-12-31 9.13 17.00
2020-01-28
2019-12-31 8.81 16.00
OB:TEL Past Annualized Dividends Data
Date (Data in NOK) Dividend per share (annual) Avg. Yield (%)
2019-05-08 8.400 4.796
2018-01-31 8.100 4.842
2017-02-02 7.800 5.065
2016-02-10 7.500 5.570
2014-04-22 7.000 4.498
2014-02-12 7.000 5.379
2013-02-13 6.000 4.522
2012-04-23 5.000 4.688
2012-03-21 5.000 4.840
2012-02-08 5.000 4.881
2011-04-28 3.800 4.178
2010-04-26 2.500 2.786
2009-10-29 0.000 0.000
2009-07-23 0.000 0.000
2009-05-05 0.000 0.000
2009-02-11 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Telenor's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Telenor's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Telenor afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Telenor has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Telenor's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Sigve Brekke
COMPENSATION NOK15,618,000
AGE 60
TENURE AS CEO 4.4 years
CEO Bio

Mr. Sigve Brekke has been the Chief Executive Officer and President of Telenor ASA since August 17, 2015. Mr. Brekke served as the Chief Executive Officer of Total Access Communication Public Company Limited (formerly, Total Access Communication PLC, DTAC and dtac TriNet Co., Ltd.) from January 13, 2005 to September 1, 2008. He served as Co-Chief Executive Officer of Total Access Communications Public Co. Ltd. from 2002 to January 13, 2005 and from February 25, 2005 to October 20, 2005. He served as Chief Executive Officer of Uninor (now, Telenor India) from July 2010 to 2013. He served as the Chief Executive Officer of United Communication Industry Public Company Limited (formerly, United Communication Industry PLC) from October 22, 2005 to 2008. He served as a Manager of Business Development at Telenor Asia Pte. Ltd. from joining in 1999 to 2000. He served as the Head of Region Asia at DiGi Com Berhad. He served as the Head of Region Asia of Telenor Asia Pte. Ltd. from 2008 to 2013 and served as its Executive Vice-President. He served as the Managing Director of Telenor Asia Pte. Ltd. from 2000 to 2002. He served as an Executive Vice President of Telenor ASA until August 17, 2015 and served as its Head of Asian Region from August 2008 to August 17, 2015. He served as Executive Vice President Telenor Group since July 2008. He served as an Acting Chief Executive Officer of Total Access Communication Public Company Limited from September 2, 2014 to April 1, 2015. He served as an Acting Chief Executive Officer of Unitech Wireless Limited from November 2013 to January 8, 2014 and served as its Managing Director from November 2010 to May 2013. From 1993 to 1996, Mr. Brekke served as a Deputy Minister/State Secretary of Defense in the Norwegian Ministry of Defense and Political Advisor of Norwegian Defense Research Establishment, Norway. He served several positions in the Norwegian Labor Party and Norwegian Confederation of Trade Unions. He had a political career starting with several positions in the Labor Youth Organisation (AUF). He is instrumental in building Telenor’s footprint in the region. Since being part of setting the initial direction in 1999, he has been a key driver and shaper of making Telenor a leading force in key Asian markets. He served as Secretary General of AUF Norway from 1989 to 1993. He serves as Chairman of Grameenphone IT Ltd. He serves as the Chairman of Telenor Pakistan (Pte) Ltd. He served as Chairman of GrameenPhone Ltd. from September 1, 2008 to September 28, 2016. He served as Chairman of DiGi Telecommunications Sdn Bhd from August 21, 2008 to August 19, 2015. Mr. Brekke served as the Chairman and Non-Independent Non-Executive Director of DiGi.Com Berhad from August 21, 2008 to August 19, 2015. He serves as Deputy Chairman of TAC. He served as Vice Chairman of Total Access Communication Public Company Limited from February 8, 2006 to August 17, 2015. He serves as a Board Member of Gsma Ltd. He has been a Director of Grameenphone IT Ltd. since September 1, 2008. He serves as a Director of Telenor Asia Pte Ltd. and Telenor Pakistan (Pte) Ltd. He served as a Director of Total Access Communication Public Company Limited from 2000 to August 17, 2015 and DiGi Telecommunications Sdn Bhd until August 19, 2015. He served as a Director of United Communication Industry Public Company Limited from October 22, 2005 to 2008. He served as Director of GrameenPhone Ltd. from September 1, 2008 to September 28, 2016. He served as a Director of Telenor Myanmar since 2013. He served as a Director of Telenor Group since July 2008. Mr. Brekke served as a Director of Unitech Wireless Limited since 2009. He served as a Non-Independent Non-Executive Director of DiGi.Com Bhd from October 2, 2000 to February 8, 2004. He served as an Associate Research Fellow at the Center for Science and International Affairs from Harvard University, John F Kennedy School of Government, USA from 1996 to 1997. Mr. Brekke received a Master Degree in Public Administration from John F. Kennedy School of Government, Harvard University, USA (1998), Bachelor's Degree in Management from Norwegian School of Management Buskerud, Norway and a Bachelor's Degree in Business and Administration from the Telemark College, Norway. He completed courses at Telemark College in 1984.

CEO Compensation
  • Sigve's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Sigve's remuneration is about average for companies of similar size in Norway.
Management Team Tenure

Average tenure and age of the Telenor management team in years:

2.8
Average Tenure
53
Average Age
  • The tenure for the Telenor management team is about average.
Management Team

Sigve Brekke

TITLE
President & CEO
COMPENSATION
NOK16M
AGE
60
TENURE
4.4 yrs

Jørgen C. Rostrup

TITLE
Executive VP & CFO
COMPENSATION
NOK6M
AGE
53
TENURE
3.2 yrs

Ruza Sabanovic

TITLE
Executive VP & CTO
COMPENSATION
NOK7M
AGE
48
TENURE
2.8 yrs

Cecilie Heuch

TITLE
Executive VP & Chief People Officer
COMPENSATION
NOK5M
AGE
54
TENURE
2.1 yrs

Albern Murty

TITLE
Executive VP of Developed Asia Cluster & CEO of Digi - Malaysia
COMPENSATION
NOK3M
AGE
46
TENURE
1.4 yrs

Wenche Agerup

TITLE
Head of Group Holdings Unit
COMPENSATION
NOK4M
AGE
55
TENURE
4.2 yrs

Anne Kvam

TITLE
Executive VP & Chief Corporate Affairs Officer
COMPENSATION
NOK4M
AGE
52
TENURE
1.3 yrs

Petter-Børre Furberg

TITLE
Executive VP & CEO of Telenor Norway
COMPENSATION
NOK8M
AGE
52
TENURE
1.3 yrs

Alexandra Reich

TITLE
CEO of Dtac
COMPENSATION
NOK4M
AGE
56
TENURE
3.2 yrs

Marianne Moe

TITLE
Head of Investor Relations
Board of Directors Tenure

Average tenure and age of the Telenor board of directors in years:

2.6
Average Tenure
63
Average Age
  • The average tenure for the Telenor board of directors is less than 3 years, this suggests a new board.
Board of Directors

Gunn Waersted

TITLE
Chair of the Board
COMPENSATION
NOK805K
AGE
64
TENURE
4 yrs

Jørgen Kildahl

TITLE
Vice Chair of the Board
COMPENSATION
NOK633K
AGE
56
TENURE
2.6 yrs

Sally Davis

TITLE
Board Member
COMPENSATION
NOK528K
AGE
66
TENURE
8.2 yrs

Jon Erik Reinhardsen

TITLE
Board Member
COMPENSATION
NOK597K
AGE
63
TENURE
5.7 yrs

Bjørn Næss

TITLE
Chairman of Corporate Assembly
TENURE
0.7 yrs

Lars Tronsgaard

TITLE
Vice Chairman of Corporate Assembly
AGE
65
TENURE
2 yrs

Jan Eriksen

TITLE
Employee Representative Director
AGE
65
TENURE
0.7 yrs

Jacob Aqraou

TITLE
Board Member
COMPENSATION
NOK555K
AGE
47
TENURE
3.7 yrs

Grethe Viksaas

TITLE
Board Member
COMPENSATION
NOK530K
AGE
61
TENURE
2.7 yrs

Esben Smistad

TITLE
Employee Representative Director
AGE
34
TENURE
0.7 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NOK) Value (NOK)
13. May 19 Buy Jørgen C. Rostrup Individual 10. May 19 10. May 19 2,990 NOK172.47 NOK515,700
13. May 19 Buy Siri Birgitte Berge Individual 10. May 19 10. May 19 1,275 NOK172.47 NOK219,906
13. May 19 Buy Rita Skjervik Individual 10. May 19 10. May 19 911 NOK172.47 NOK157,125
13. May 19 Buy Ruza Sabanovic Individual 10. May 19 10. May 19 1,972 NOK172.47 NOK340,121
13. May 19 Buy Cecilie Heuch Individual 10. May 19 10. May 19 2,508 NOK172.47 NOK432,567
13. May 19 Buy Anne Kvam Individual 10. May 19 10. May 19 2,536 NOK172.47 NOK437,397
13. May 19 Buy Albern Murty Individual 10. May 19 10. May 19 5,505 NOK172.47 NOK949,475
13. May 19 Buy Lars Thomsen Individual 10. May 19 10. May 19 1,259 NOK172.47 NOK217,146
13. May 19 Buy Knut Giske Individual 10. May 19 10. May 19 1,200 NOK172.47 NOK206,970
13. May 19 Buy Sigve Brekke Individual 10. May 19 10. May 19 5,298 NOK172.47 NOK913,773
X
Management checks
We assess Telenor's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Telenor has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

An Intrinsic Calculation For Telenor ASA (OB:TEL) Suggests It's 28% Undervalued

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by projecting its future cash flows and then discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (NOK, Millions) NOK19.4b NOK19.1b NOK19.0b NOK19.0b NOK19.1b NOK19.3b NOK19.6b NOK19.8b NOK20.1b NOK20.4b Growth Rate Estimate Source Analyst x8 Analyst x7 Est @ -0.6% Est @ 0.11% Est @ 0.6% Est @ 0.95% Est @ 1.19% Est @ 1.36% Est @ 1.48% Est @ 1.57% Present Value (NOK, Millions) Discounted @ 6.53% NOK18.2k NOK16.8k NOK15.7k NOK14.8k NOK14.0k NOK13.2k NOK12.6k NOK11.9k NOK11.4k NOK10.9k ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= NOK139.5b After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = kr20b × (1 + 1.8%) ÷ (6.5% – 1.8%) = kr436b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = NOKkr436b ÷ ( 1 + 6.5%)10 = NOK231.63b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is NOK371.13b.

Simply Wall St -

Can Telenor ASA (OB:TEL) Maintain Its Strong Returns?

One way to conceptualize this, is that for each NOK1 of shareholders' equity it has, the company made NOK0.28 in profit. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Telenor: 28% = kr9.9b ÷ kr44b (Based on the trailing twelve months to June 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

What Do Analysts Think About The Future Of Telenor ASA's (OB:TEL)?

Overall, it seems that analyst forecasts are substantially optimistic, with earnings expected to grow by a high double-digit of 50% in the upcoming year, relative to the past 5-year average growth rate of 9.8%. … See our latest analysis for Telenor What can we expect from Telenor in the longer term? … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

Simply Wall St -

Does Telenor ASA (OB:TEL) Have A Place In Your Dividend Stock Portfolio?

Dividend paying stocks like Telenor ASA (OB:TEL) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. With a nine-year payment history and a 4.6% yield, many investors probably find Telenor intriguing. It sure looks interesting on these metrics - but there's always more to the story . The company also bought back stock equivalent to around 1.2% of market capitalisation this year. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis OB:TEL Historical Dividend Yield, August 2nd 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. So we need to form a view on if a company's dividend is sustainable, relative to its net profit after tax. In the last year, Telenor paid out 124% of its profit as dividends. Unless there are extenuating circumstances, from the perspective of an investor who hopes to own the company for many years, a payout ratio of above 100% is definitely a concern. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Telenor paid out 102% of its free cash last year. Cash flows can be lumpy, but this dividend was not well covered by cash flow. As Telenor's dividend was not well covered by either earnings or cash flow, we would be concerned that this dividend could be at risk over the long term. Is Telenor's Balance Sheet Risky? As Telenor's dividend was not well covered by earnings, we need to check its balance sheet for signs of financial distress. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Limited recent earnings growth and a high payout ratio makes it hard for us to envision strong future dividend growth, unless the company should have substantial pricing power or some form of competitive advantage. … Earnings growth generally bodes well for the future value of company dividend payments.

Simply Wall St -

Telenor (OB:TEL) Shareholders Have Enjoyed A 19% Share Price Gain

For example, the Telenor ASA (OB:TEL) share price is up 19% in the last 5 years, clearly besting than the market return of around 8.4% (ignoring dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … During five years of share price growth, Telenor achieved compound earnings per share (EPS) growth of 5.8% per year.

Simply Wall St -

Is Telenor (OB:TEL) Using Too Much Debt?

Since Telenor does have net debt, we think it is worthwhile for shareholders to keep an eye on the balance sheet, over time. … Over the most recent three years, Telenor recorded free cash flow worth 64% of its EBIT, which is around normal, given free cash flow excludes interest and tax. … If you're interested in investing in businesses that can grow profits without the burden of debt, then check out this free list of growing businesses that have net cash on the balance sheet.

Simply Wall St -

Do Institutions Own Telenor ASA (OB:TEL) Shares?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … See our latest analysis for Telenor OB:TEL Ownership Summary, July 2nd 2019 What Does The Institutional Ownership Tell Us About Telenor? … Insider Ownership Of Telenor The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Are Insiders Buying Telenor ASA (OB:TEL) Stock?

See our latest analysis for Telenor Telenor Insider Transactions Over The Last Year In the last twelve months, the biggest single purchase by an insider was when Executive VP of Developed Asia Cluster & CEO of Digi - Malaysia Albern Murty bought øre949k worth of shares at a price of øre172 per share. … OB:TEL Recent Insider Trading, June 7th 2019 Telenor is not the only stock that insiders are buying. … Telenor Insiders Bought Stock Recently Over the last quarter, Telenor insiders have spent a meaningful amount on shares.

Simply Wall St -

Is Telenor ASA (OB:TEL) Trading At A 31% Discount?

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (NOK, Millions) NOK17.19k NOK16.91k NOK18.07k NOK18.67k NOK19.21k NOK19.69k NOK20.14k NOK20.57k NOK20.99k NOK21.40k Growth Rate Estimate Source Analyst x6 Analyst x7 Analyst x6 Est @ 3.32% Est @ 2.85% Est @ 2.52% Est @ 2.3% Est @ 2.13% Est @ 2.02% Est @ 1.94% Present Value (NOK, Millions) Discounted @ 6.53% NOK16.13k NOK14.90k NOK14.95k NOK14.50k NOK14.00k NOK13.47k NOK12.94k NOK12.41k NOK11.88k NOK11.37k Present Value of 10-year Cash Flow (PVCF)= NOK136.55b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = øre21b × (1 + 1.8%) ÷ (6.5% – 1.8%) = øre457b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = NOKøre457b ÷ ( 1 + 6.5%)10 = NOK242.64b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is NOK379.20b.

Simply Wall St -

What Should We Expect From Telenor ASA's (OB:TEL) Earnings In The Next 12 Months?

Looking at Telenor ASA's (OB:TEL) earnings update on 31 March 2019, analyst consensus outlook appear vastly optimistic, with earnings expected to grow by a high double-digit of 65% in the upcoming year, compared with the historical 5-year average growth rate of 10%. … In this article, I've outline a few earnings growth rates to give you a sense of the market sentiment for Telenor in the longer term. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.

Simply Wall St -

Company Info

Description

Telenor ASA, together with its subsidiaries, operates as a telecommunication company worldwide. Its principal products and services include mobile communication, fixed line communication, and broadcasting services. The company’s mobile communication services comprise voice, data, Internet, and content services, as well as customer equipment and messaging. Its fixed line services consist of telephony, Internet and TV, and leased lines, as well as data and managed services; and broadcast services include DTH, and broadcasting and data communication services through satellite, and terrestrial radio and TV transmission. The company also provides wholesale services that enable the operators to route international voice, messaging, data, and signaling traffic through a single connection to a global network, as well as handles international roaming relationships. In addition, it offers digital services, such as international communication services and machine to machine communication, as well as Internet based services, digital media advertising, and financial services. Further, the company sells mobile devices; and leases base station sites and equipment. Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.

Details
Name: Telenor ASA
TEL
Exchange: OB
Founded: 1855
NOK237,157,933,935
1,422,663,071
Website: http://www.telenor.com
Address: Telenor ASA
Snarøyveien 30,
Fornebu,
Akershus, 1360,
Norway
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OB TEL Ordinary Shares Oslo Bors NO NOK 04. Dec 2000
OTCPK TELN.F Ordinary Shares Pink Sheets LLC US USD 04. Dec 2000
DB TEQ Ordinary Shares Deutsche Boerse AG DE EUR 04. Dec 2000
LSE 0G8C Ordinary Shares London Stock Exchange GB NOK 04. Dec 2000
SWX TEL Ordinary Shares SIX Swiss Exchange CH CHF 04. Dec 2000
BATS-CHIXE TELO Ordinary Shares BATS 'Chi-X Europe' GB NOK 04. Dec 2000
OTCPK TELN.Y SPONSORED ADR Pink Sheets LLC US USD 04. Dec 2000
Number of employees
Current staff
Staff numbers
0
Telenor employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/28 20:44
End of day share price update: 2020/01/28 00:00
Last estimates confirmation: 2020/01/27
Last earnings filing: 2019/10/23
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.