Saudi Telecom Company, together with its subsidiaries, provides telecommunications, information, media, and digital payment services in the Kingdom of Saudi Arabia and internationally. The company offers mobile, landline, internet, and TV on demand services, as well as international telecommunication, broadband, and other related services; and operates communications projects. It is also involved in the electrical business and telecommunication networks; retail and wholesale trade of computer systems and devices, fixed and mobile telecommunication, internet equipment, advertising and publicity material, spare parts, electrical equipment, payment devices, point-of-sale devices, telecom operator services, telecom sales, and service centers; and wholesale and retail of telecommunications equipment and electrical appliances, and recharge card services. In addition, the company engages in importing, marketing, installing, and maintaining licensed telecommunications and information technology; owning, constructing, operating, leasing, and commercializing telecom towers; the content services and digital media activities; the provision of computer services; the sale and re-sale of fixed and mobile telecommunication services; and the maintenance and operation of commercial centers. Further, it establishes, owns, develops, invests, and manages real estate and contracting activities; and provides consulting, and importing and exporting services. The company was founded in 1998 and is headquartered in Riyadh, the Kingdom of Saudi Arabia.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	67,431.5	71,777.2	75,893.4	78,625.1	82,576	86,438	86,438	86,438
Revenue % Chg.	7%	6.4%	5.7%
EBIT	14,009.4	12,450.8	12,949.9	14,474.2	15,479.7	16,424.2	16,424.2	16,424.2
EBIT Margin	20.8%	17.3%	17.1%
Tax Rate	8%	9.5%	9.8%
NOPAT	12,882.9	11,269.9	11,678.3	13,605.8	14,550.9	15,438.7	15,438.7	15,438.7
NOPAT Margin	19.1%	15.7%	15.4%	17.3%	17.6%	17.9%	17.9%	17.9%
D&A	8,575.6	8,844.9	8,465.1	10,202.5	10,655.7	11,106.3	11,106.3	11,106.3
D&A / Revenue	12.7%	12.3%	11.2%
Capex	-5,496.5	-7,237.3	-7,951.8	-12,575.3	-12,563.7	-12,891	-12,891	-12,891
Capex / Revenue	-8.2%	-10.1%	-10.5%
Chg. NWC	993.5	-1,565.7	-5,475.7	-2,076.5	-2,180.8	-2,282.8	-2,282.8	-2,282.8
Chg. NWC / Revenue	1.5%	-2.2%	-7.2%
Unlevered FCF (UFCF)	16,955.5	11,311.8	6,715.8	9,156.5	10,462.1	11,371.3	11,371.3	11,371.3
UFCF % Chg.	621.8%	-33.3%	-40.6%	36.3%	14.3%	8.7%	0%	—
PV of UFCF	—	—	—	8,380.3	8,763.5	8,717.6	7,978.6	7,302.2
Sum of PV of UFCF	—	—	—	8,380.3	17,143.8	25,861.4	33,840	41,142.2

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.2%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.8%
Total Debt	19,711.8
Market Cap	212,864.6
Total Capital	232,576.4
Debt Weighting	8.5%
Equity Weighting	91.5%
WACC	9.3%

Exit Multiple EV/FCF
Terminal Value	213,625.7
PV of Terminal Value	125,553.2
Cumulative PV of UFCF	41,142.2
Net Debt	-2,141
Equity Value	168,836.4
Shares Outstanding	4,989.8
Implied Share Price	33.8
Current Share Price	42.7
Implied Upside / (Downside)	-20.7%