Rain's valuation of R25.91 billion significantly higher than Telkom's market cap

[Daniel Puchert]

Rain more valuable than Telkom

Mobile network operator Rain's valuation has climbed to R25.91 billion according to the estimates of African Rainbow Capital Investments (ARCI), dwarfing Telkom's market cap of R17.79 billion.

According to ARCI's half-year results released last week, Rain's valuation grew by nearly R1 billion between 31 June and 31 December 2024.

 

[Polymathic]

What's African Rainbow Capitals Investments angle with this grift?
Tax fraud?

 

[warwickw]

Sounds like a Steinhof.

 

[Johand]

EBITDA - the world's most useless financial metric. I am all with Warren Buffet and Charlie Munger here. Especially with technology capital intensive businesses. It is easy to hide a couple of things - You either borrow a lot of money to build your network and then suffer a loss because of interest (the I in EBITDA) and you also don't disclose how fast your investment is losing value (deprecation - D in EBITDA).

You can make a lot of business look fantastic by repeating that number.

 

[Gudnews]

They make much money from expanding their offerings? I never thought it was a good idea to go at it alone as a voice network.