Telkom SOCJSE:TKG -0.49%74 Pretax Margin % is 11.46% as of Mar. 2026, which is 35% above its 10-year median of 8.49. GuruFocus rates JSE:TKG with a GF Score™ of 74/100 and a GF Value™ of R33.57 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 364 Telecommunication Services companies, Telkom SOC ranks better than 57.69% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Telkom SOC's Pre-Tax Income for the
six
months ended in Mar. 2026 was R2,565 Mil. Telkom SOC's Revenue for the
six
months ended in Mar. 2026 was R22,373 Mil. Therefore, Telkom SOC's pretax margin for the quarter that ended in Mar. 2026 was 11.46%.
The historical rank and industry rank for Telkom SOC's Pretax Margin % or its related term are showing as below:
JSE:TKG'
s Pretax Margin % Range Over the Past 10 Years
Min: -33.25 Med: 8.49 Max: 11.09
Current: 10.69
JSE:TKG's Pretax Margin % is ranked better than 57.69% of 364
companies
in the Telecommunication Services industry
Industry Median: 7.64
vs JSE:TKG: 10.69
Telkom SOC (JSE:TKG) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Telkom SOC Pretax Margin % Related Terms
Telkom SOC Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Telkom SOC's Pretax Margin % can be seen below:
* 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.
JSE:TKG vs TMUS, VZ, T: Pretax Margin % Comparison
For the Telecom Services subindustry, Telkom SOC's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
Telkom SOC Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telkom SOC's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Telkom SOC's Pretax Margin % falls into.
* 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.
Telkom SOC (JSE:TKG) has a Pretax Margin % of 11.46% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Telkom SOC and its competitors. This is 35% above median its historical median of 8.49. According to the industry distribution chart, Telkom SOC ranks #154 out of 364 companies in the Telecommunication Services industry, placing it in the top 42.3%.
Is Telkom SOC's Pretax Margin % too high?
Telkom SOC's current Pretax Margin % of 11.46% is 35% above median its 10-year median of 8.49. The Telecommunication Services industry median Pretax Margin % is 7.64. Telkom SOC's value of 11.46% is 50% above this industry median. Based on the distribution chart, Telkom SOC ranks #154 out of 364 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telkom SOC has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telkom SOC's Pretax Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telkom SOC ranks #154 out of 364 companies for Pretax Margin %. This puts Telkom SOC in the upper half of its industry. The industry median Pretax Margin % is 7.64. Telkom SOC's value of 11.46% is 50% above this benchmark. While the company's 10-year median is 8.49 vs. the industry median of 7.64, Telkom SOC has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Telecommunication Services company?
The median Pretax Margin % among Telecommunication Services companies is 7.64, based on 364 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telkom SOC's current Pretax Margin % of 11.46% is 50% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Telkom SOC and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telkom SOC's current Pretax Margin % is 11.46%, which is 35% above median its own 10-year median of 8.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telkom SOC stock overvalued right now?
Based on GuruFocus' analysis, Telkom SOC (JSE:TKG) is currently considered Significantly Overvalued. The stock's GF Value™ is R33.57, compared to a current price of R53.00 — trading 57.9% above its estimated fair value. The current Pretax Margin % is 11.46%, which is 35% above median its 10-year median of 8.49 and 50% above the Telecommunication Services industry median of 7.64. Telkom SOC's overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Telkom SOC (JSE:TKG), the current Pretax Margin % is 11.46% as of Mar. 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 Telkom SOC (JSE:TKG) Overvalued in 2026?
Based on GuruFocus' analysis, Telkom SOC stock appears to be overvalued.
The current stock price of R53.00 is trading 57.9% above its estimated GF Value™ of R33.57.
GuruFocus considers Telkom SOC to be Significantly Overvalued.
Key valuation signals for JSE:TKG:
Pretax Margin %: 11.46% (35% above median its 10-year median of 8.49)
GF Value™: R33.57 vs. price of R53.00 (57.9% above fair value)
Industry Position: 50% above the Telecommunication Services median (#154 of 364)
No single metric tells the full story. See the JSE:TKG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telkom SA SOC Ltd provides fixed-line voice and data communications services in South Africa. The company has segments namely: Openserve; Telkom Consumer; BCX; Gyro; and others It derives maximum revenue from Telkom Consumer segment.
74GF Score
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