| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 1.00 | -96 |
| Intrinsic value (DCF) | 14.58 | -35 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 27.40 | 21 |
PLDT Inc. (NYSE: PHI) is the leading telecommunications and digital services provider in the Philippines, offering a comprehensive suite of wireless, fixed-line, and digital solutions. The company operates through three key segments: Wireless, Fixed Line, and Others, delivering mobile broadband, fixed-line telecommunications, business infrastructure, IT outsourcing, and digital content services. With over 71 million mobile broadband subscribers, 3.6 million fixed-line subscribers, and 2.8 million broadband subscribers as of 2021, PLDT dominates the Philippine telecom market. The company has aggressively expanded its fiber-optic network and 5G infrastructure, positioning itself as a critical enabler of digital transformation in the country. PLDT’s diversified revenue streams include cellular services, broadband, enterprise solutions, and digital platforms, making it a cornerstone of the Philippines' communication services sector. Headquartered in Makati City, PLDT plays a vital role in connecting businesses and consumers across the archipelago, supporting the nation’s growing digital economy.
PLDT Inc. presents a compelling investment case as the dominant telecom player in the Philippines, benefiting from strong market share, recurring revenue streams, and a growing demand for digital services. The company’s extensive fiber and 5G infrastructure investments position it well for long-term growth, particularly in broadband and enterprise solutions. However, high capital expenditures (₱65.7B in FY 2023) and substantial debt (₱335.6B) weigh on profitability and cash flow. While PLDT maintains stable dividends (₱1.69 per share), investors should monitor debt sustainability and competitive pressures from Globe Telecom and emerging digital players. The stock’s low beta (0.57) suggests defensive characteristics, but regulatory risks and market saturation in mobile services remain concerns.
PLDT Inc. holds a dominant position in the Philippine telecom market, leveraging its extensive infrastructure, including the country’s largest fiber-optic network and expanding 5G coverage. Its competitive advantage stems from its first-mover status, strong brand recognition, and diversified service portfolio, which includes high-margin enterprise solutions and digital services. However, competition is intensifying, particularly from Globe Telecom, which has aggressively invested in digital banking (via GCash) and content partnerships. PLDT’s fixed-line and broadband segments face pressure from Converge ICT, a pure-play fiber provider with rapid subscriber growth. The company’s scale allows for cost efficiencies, but its high debt load limits financial flexibility compared to leaner competitors. PLDT’s ownership of hyperscale data centers and undersea cable assets provides a strategic edge in enterprise and international connectivity, though execution risks in digital transformation initiatives remain. The telecom duopoly with Globe ensures pricing power, but regulatory scrutiny on service quality and pricing could impact margins.