GTMEY - Globe Telecom: Shares Could Re-Rate With Clarity On New Entrant And Third Telecommunications Operator

Elevator Pitch

Philippines-listed Globe Telecom (OTCPK:GTMEY) (OTCPK:GTMEF) [GLO:PM] trades at 5.2 times consensus forward FY2020 EV/EBITDA and offers a 4.6% dividend yield based on its share price of PHP1,960 as of August 7, 2019.

Although the incumbent telecommunications services operators are expected to increase capital expenditure spending and experience increased competition from Dito Telecommunity, I expect the valuation of Globe Telecom to be re-rated positively over time, with increased clarity on Dito Telecommunity's plans and the likelihood that Dito Telecommunity might pose a lesser threat than expected and priced into the