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Assessing Mobile TeleSystems’s Performance Compared to Its Peers

Gabriel Kane

Mobile TeleSystems: Stock Rose 6.7% on Positive 3Q15 Earnings

(Continued from Prior Part)

Mobile TeleSystems and its peers

The PE (price-to-earnings) ratios of Mobile TeleSystems (MBT), Orange (ORAN), Ericsson (ERIC), and Turkcell Iletisim Hizmetleri (TKC) were 10.2x, 46.8x, 25.0x, and 15.0x, respectively, as of November 17, 2015.

Meanwhile, the PBV (price-to-book value) ratios of Mobile TeleSystems, Orange, Ericsson, Turkcell Iletisim Hizmetleri, and VimpelCom (VIP) were 3.0x, 1.5x, 1.9x, 1.9x, and 1.1x, respectively.

According to the findings above, peers have outperformed Mobile TeleSystems based on PE. However, Mobile TeleSystems is ahead of its peers based on PBV.

ETFs that invest in Mobile TeleSystems  

The Market Vectors Russia ETF (RSX) invests 4.5% of its holdings in Mobile TeleSystems. The ETF tracks a market-cap-weighted and selected index of Russian companies.

The iShares MSCI Russia Capped ETF (ERUS) invests 3.4% of its holdings in Mobile TeleSystems. The ETF is a market-cap-weighted index of securities listed on Russian stock exchanges.

The SPDR S&P Russia ETF (RBL) invests 3.0% of its holdings in Mobile TeleSystems. The ETF tracks the S&P Russia Capped BMI Index, a market-cap-weighted index of publicly traded stocks domiciled in Russia.

Comparing Mobile TeleSystems and its ETFs

Now, let’s look at a comparison of Mobile TeleSystems and ETFs that invest in it:

  • The year-to-date price movements of Mobile TeleSystems, RSX, ERUS, and RBL are 7.8%, 14.4%, 11.8%, and 12.1%, respectively.
  • The PE ratios of Mobile TeleSystems, RSX, ERUS, and RBL are 10.2x, 7.1x, 8.3x, and 8.7x, respectively.
  • The PBV ratios of Mobile TeleSystems, RSX, ERUS, and RBL are 3.0x,0.75x, 0.54x, and 0.57x, respectively.

According to the above, ETFs have outperformed Mobile TeleSystems based on price movement. However, Mobile TeleSystems is ahead of its ETFs based on PE and PBV.

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