Friday, February 12, 2010

SingTel, StarHub and M1

A measure of indebtedness commonly used in the Telco industry is debt divided by EBITDA. With a ratio higher than 3, investors are advised to proceed with caution.

I did a little calculations of the debt to equity ratios for the three telcos in Singapore (SingTel, StarHub and M1). Here are my findings:

SingTel

Total debt = $12,754.4 million
EBITDA = $4,431.2 million
Debt/EBIDTA ratio = 2.8

StarHub

Total Debt= $1606.80 million
EBITDA = $653.5
Debt/EBIDTA = 2.8

MobileOne (M1)

Total debt = $581.4million
EBIDTA = $309.7million
Debt/EBIDTA = 1.8

It seems like M1 has the lowest Debt/EBIDTA ratio though all three companies meet the criteria of having ratios below 3.

4 comments:

Dou said...

So u recommend M1 in term of FA?

Currently the price of M1 i find it over price

investment catcher said...

This is a wonderful website!! 参考になります。ありがとう! Thank you!!
I'd be pleased if you exchange reciprocal link with me.
お互いがんばりましょう。
http://easy-happy-invest.blogspot.com/

stockscfeener said...

Hi Dou,

Nope. I am not recommending M1. I am just comparing the various debt levels for the telcos.

stockscreener said...

Hi investment catcher,

Thanks for your comments. As much as I would like to exchange links with you, I have found it a trouble sometimes to keep updating links especially with new blogs.

I prefer to exchange links with blogs that are minimally 6 months old. This is because many new blogs come and go and last less than 6 months. I then have to go on a link hunt and remove these obsolete blogs.

I hope you understand and I would certainly be glad to swap links with you 6 months later.

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