Elevator Pitch
Indonesia-listed PT XL Axiata Tbk (PTXKY) (PTXAF) [EXCL:IJ], the second-largest mobile operator in Indonesia, is currently trading at 6.0 times consensus forward FY2019 EV/EBITDA and 5.4 times consensus forward FY2020 EV/EBITDA based on its share price of IDR3,260 as of August 2, 2019, which represents a discount to its larger peer, PT Telekomunikasi Indonesia Tbk (TLK) (TLKMF) [TLKM:IJ].
XL Axiata's valuation discount to its larger peer, Telekomunikasi Indonesia, should narrow over time, as it continues to expand in ex-Java and enhance its network quality to