Two Manila brokerage houses have placed a strong buy on Globe Telecom Inc., arguing that the country’s second-largest telecommunications operator is trading between 45 percent and 107 percent below its intrinsic value even as its operating metrics hit record highs.
In separate stock updates, B.A. Securities Inc. and H.E. Bennett Securities Inc. said the market has penalized Globe for its leveraged balance sheet while assigning close to zero value to its 33.84-percent stake in Mynt, the parent firm of e-wallet GCash, which has filed for an initial public offering (IPO).
Globe closed at P1,748 apiece as of August 18, near the middle of a 52-week range of P1,401 to P1,964, giving it a market capitalization of about P251.7 billion.
Jofer Gaite, vice president for sales at B.A. Securities, said the disconnect is rooted in how the market reads Globe’s capital structure rather than its cash generation. Intrinsic multiples-based valuation points to a target of P3,620.80 a share, while a discounted cash flow (DCF) model yields P2,544.27. Analyst consensus sits at P2,242.22, or 28.3 percent above the current price.
Globe posted record consolidated gross service revenues of P85.4 billion in the first half, up 6 percent from about P80.6 billion in the same period last year. Full-year 2025 gross service revenue reached an all-time high of P165.1 billion.
Mobile revenues reached P60.4 billion, up 6 percent, while corporate data grew 15 percent to P11 billion and broadband rose 6 percent to P12.4 billion. Enterprise demand for cloud services, cybersecurity and data centers is now the company’s fastest-growing segment.
Earnings before interest, taxes, depreciation and amortization (Ebitda) margin settled at 52.6 percent in the first semester, ahead of management’s roughly 50-percent guidance, translating to P44.9 billion in first-half Ebitda, or an annualized P89.8 billion.
Net income, however, fell 11 percent to P11 billion from about P12.4 billion, dragging net margin to 12.9 percent from 14.1 percent in 2025.
Joel de la Peña, market strategist and chief trader at H.E. Bennett Securities, said the contraction is not an operational failure but the result of non-cash and below-the-line items-smaller one-time dilution gains from Mynt, heavier depreciation on network assets, and higher financing charges.
Capital expenditures reached P26.3 billion in the first half, equivalent to 31 percent of revenues, down sharply from the 64.2-percent peak in 2022. Free cash flow stood at a positive P15.3 billion, reversing the negative P36.2 billion recorded four years ago. Net debt-to-EBITDA closed the semester at 2.48 times.
Both houses lean on a sum-of-the-parts (SOTP) reading to make their case. Based on preliminary prospectus filings, Mynt is targeting an offer price of up to P10 per share. At an assumed $8-billion valuation, Globe’s retained 33.84-percent stake is worth $2.71 billion, or P157.36 billion-about P125.89 billion after a standard 20-percent holding company discount.
Valuing the core telecom business separately at 5.5 times enterprise value to Ebitda and netting out roughly P232 billion in debt yields a core equity value of P261.90 billion, or P1,810.83 a share-already above the prevailing market price.
Even in the bear case of a 5.0-times multiple and a 25-percent holding discount, the SOTP fair value lands at P2,316.39, or 32.5 percent above current levels.
Globe trades at 12.67 times earnings against a 10-year median of 13.22 times and an industry average of 17.6 times, on earnings per share of P136.90. Its forward multiple is 11.81 times and price-to-book is 1.44 times. The stock carries a P25 quarterly dividend, with an ex-date of August 17, for a yield of about 5.76 percent.
The company serves 67.7 million mobile subscribers and 2.4 million broadband users, holds an estimated 44 percent to 47 percent subscriber share, and operates over 100,000 kilometers of fiber. Management has guided for low- to mid-single-digit revenue growth this year.