On valuation, Starhub is expensive at a forward price-to-earnings (P/E) of 17.5 times, compared to a sector average of 15 times, as well as 9 times EV/EBITDA versus a sector average of 7.5 times, as investors tend to value the company based on divided yield.
SINGAPORE (Oct 16): DBS is reiterating StarHub at “fully valued” with a target price of $2.20, on falling subscribers and expensive valuation despite a decent dividend yield.
In a Monday report, analyst Sachin Mittal says, “The number of households subscribing to all three services – pay TV, fixed broadband and mobile – has been declining which has been a critical factor in dictating the stock’s performance.”
