Safaricom (NAI:SCOM) Margin of Safety % (DCF Earnings Based): -17.69% (As of Jun. 24, 2026)


NAI:SCOM Safaricom PLC NAI:SCOM
100 GF Score
Price KES32.60
GF Value KES21.84
Valuation Significantly Overvalued
! 4 Warning Signs
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What is Safaricom Margin of Safety % (DCF Earnings Based)?

Safaricom NAI:SCOM -0.46% 100 Margin of Safety % (DCF Earnings Based) is -17.69% as of Jun. 24, 2026. GuruFocus rates NAI:SCOM with a GF Score™ of 100/100 and a GF Value™ of KES21.84 (Significantly Overvalued). The stock has 4 warning signs investors should review.

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

As of today (2026-06-24), Safaricom's Predictability Rank is 5-Stars. Safaricom's intrinsic value calculated from the Discounted Earnings model is KES27.70 and current share price is KES32.60. Consequently,

Safaricom's Margin of Safety % (DCF Earnings Based) using Discounted Earnings model is -17.69%.

NAI:SCOM vs TMUS, VZ, T: Margin of Safety % (DCF Earnings Based) Comparison

For the Telecom Services subindustry, Safaricom's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Safaricom Margin of Safety % (DCF Earnings Based) vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Safaricom's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Safaricom's Margin of Safety % (DCF Earnings Based) falls into.


NAI:SCOM
100GF Score
Safaricom PLC NAI:SCOM
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Safaricom Margin of Safety % (DCF Earnings Based) Calculation

Safaricom's Margin of Safety % (DCF Earnings Based) for today is calculated as

Margin of Safety % (DCF Earnings Based)=(Intrinsic Value: DCF (Earnings Based)-Current Price)/Intrinsic Value: DCF (Earnings Based)
=(27.70-32.60)/27.70
=-17.69 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The intrinsic value is calculated from the Discounted Earnings model with default parameters. The calculation method is the same as Discounted Cash Flow model except earnings are used in the calculation instead of free cash flow.

What does a Margin of Safety % (DCF Earnings Based) of -17.69% mean?
Safaricom (NAI:SCOM) has a Margin of Safety % (DCF Earnings Based) of -17.69% as of Jun. 24, 2026. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Safaricom.
Is Safaricom's Margin of Safety % (DCF Earnings Based) too high?
Safaricom's current Margin of Safety % (DCF Earnings Based) is -17.69%. Overall, Safaricom has a GF Score™ of 100/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Safaricom's Margin of Safety % (DCF Earnings Based) compare to TMUS and VZ?
Safaricom's Margin of Safety % (DCF Earnings Based) of -17.69% can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Margin of Safety % (DCF Earnings Based) for a Telecommunication Services company?
A good Margin of Safety % (DCF Earnings Based) depends on the Telecommunication Services industry context. However, Margin of Safety % (DCF Earnings Based) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Margin of Safety % (DCF Earnings Based) mean?
A high Margin of Safety % (DCF Earnings Based) can signal that a stock is expensive relative to its fundamentals. Margin of Safety % (DCF Earnings Based) is the percent difference between the current price and the intrinsic DCF Earnings price. View historical data on Safaricom. Safaricom's current Margin of Safety % (DCF Earnings Based) is -17.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safaricom stock overvalued right now?
Based on GuruFocus' analysis, Safaricom (NAI:SCOM) is currently considered Significantly Overvalued. The stock's GF Value™ is KES21.84, compared to a current price of KES32.60 — trading 49.3% above its estimated fair value. The current Margin of Safety % (DCF Earnings Based) is -17.69%. Safaricom's overall GF Score™ is 100/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Margin of Safety % (DCF Earnings Based) calculated?
Margin of Safety % (DCF Earnings Based) is calculated from a company's financial statements. For Safaricom (NAI:SCOM), the current Margin of Safety % (DCF Earnings Based) is -17.69% as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Safaricom (NAI:SCOM) Overvalued in 2026?

Based on GuruFocus' analysis, Safaricom stock appears to be overvalued. The current stock price of KES32.60 is trading 49.3% above its estimated GF Value™ of KES21.84. GuruFocus considers Safaricom to be Significantly Overvalued.

Key valuation signals for NAI:SCOM:

  • Margin of Safety % (DCF Earnings Based): -17.69%
  • GF Value™: KES21.84 vs. price of KES32.60 (49.3% above fair value)
  • GF Score™: 100/100 with 4 warning signs

No single metric tells the full story. See the NAI:SCOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Safaricom Business Description

Address Safaricom House, Waiyaki Way, P.O. Box 66827, Westlands, Nairobi, KEN, 00800
Safaricom PLC is a Kenya-based telecommunications company. The principal activities of the company are the provision of telecommunication services, providing a comprehensive range of integrated telecommunication services including voice and data both mobile and fixed, SMS, the internet, and m-pesa. The company also offers a wide range of devices such as Mobile handsets, mobile broadband modems, routers, tablets, and notebooks. The majority of its revenue comes from service revenues: Voice, m-pesa, mobile data, messaging, fixed data and other service revenue. The company serves both individual and corporate/enterprise customers.
100GF Score

Get the complete analysis for NAI:SCOM

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

KES32.60
Price
KES21.84
GF Value