Elevator Pitch
The share price of Malaysia-listed telecommunications services provider Telekom Malaysia Berhad (MYTEF) [T:MK] has declined by more than 20% in the past two months, due to concerns that the company could possibly invest more aggressively in its loss-making mobile business. Telekom Malaysia is currently trading at 5.0 times consensus forward FY2019 EV/EBITDA, which represents a discount to the stock's historical five-year average forward EV/EBITDA of approximately 7 times.
Until Telekom Malaysia provides more clarity on the plans for its mobile business, this issue could continue to weigh on the company's share