I’ve been analyzing Teleste quite a bit using AI, but what thoughts does this provoke? The business operations have already been separate entities for some time, which could suggest a potential sale of the company during 2026.
The following is AI-generated output.
Sum-of-the-parts Value and DCF (Cash Flow Analysis)
Teleste has often been considered more valuable as a “sum-of-the-parts” (SOTP) than as a company as a whole, because its two main business areas (Broadband Networks and Public Safety & Mobility) serve different customer bases.
DCF Calculation Assumptions (Estimate):
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WACC (Weighted Average Cost of Capital): Approximately 9.5–10.0% (reflects small size and indebtedness).
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Growth (Terminal growth): 1.5%.
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Operating profit margin: Long-term target of 6–8%.
DCF Value:
According to most analyst estimates (such as Inderes and banks), Teleste’s DCF value ranges between €4.20 – €4.60.
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This means that at the current share price (approx. €3.80), the stock has 10–20% upside based on cash flows alone.
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Sum-of-the-parts value: If Video Security and Information Solutions (PSM) were sold separately, it could interest industrial buyers. The value of the PSM unit could be approx. €1.0–1.5/share and the value of the core business (Broadband) approx. €3.5/share, making the theoretical sum-of-the-parts closer to €5.00.