Singtel's Return on Invested Capital Could Jump if Optus Is Sold

Dow Jones01-14

1019 GMT - Singtel's return on invested capital could rise sharply if it sells Australian unit Optus, DBS Group Research analysts say in a note. They project the Singapore telecommunication provider's FY 2027 ROIC--measuring how efficiently a company earns its cash from investments--to improve by 200 basis points to around 12%. They cite growth at regional associates and divestments totaling about S$1.5 billion. Singtel's FY 2026-FY 2028 earnings could post a 14% CAGR, they add. The analysts reckon that if Optus is fully divested--at a range of 10% below to 10% above its book value--Singtel's ROIC could jump by an additional 600-800 basis points. The Singapore telecom company is among DBS's top sector picks in Asia. (megan.cheah@wsj.com)

 

(END) Dow Jones Newswires

January 14, 2026 05:19 ET (10:19 GMT)

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