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    Is FTSE All World Removal Altering The Investment Case For StarHub Stock?

    Simply Wall St·09/21/2026 22:22:19
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    • StarHub Ltd was removed from the FTSE All-World Index (USD) on 19 September 2026, an index action that can influence how institutional portfolios are constructed.
    • The exclusion may affect how consistently large index-tracking funds hold StarHub, which in turn can influence liquidity, visibility and how its fundamentals are monitored.
    • We now look at how StarHub's investment narrative could be affected by its recent removal from the FTSE All-World Index.

    Compare how StarHub's index exit stacks up against peers by scanning 229 resilient stocks with low risk scores, which may offer steadier institutional support and potentially smoother trading profiles.

    StarHub Investment Narrative Recap

    For StarHub, the core belief is that its telecom and cybersecurity operations in Singapore can keep throwing off solid cash while management works through transformation noise. The near term operational swing factor is execution on higher margin enterprise and Ensign contracts, especially given timing issues in cybersecurity revenue and pressure in entertainment and mobile lines.

    The biggest risk is that competitive mobile trends, cord cutting and DARE+ costs together squeeze earnings more quickly than cost efficiencies arrive, which could strain interest coverage and any payout ambitions. The FTSE All World exit by itself does not change these business drivers in a material way.

    There are no fresh operational announcements tied directly to this FTSE All World removal. The most relevant reference point is still StarHub’s ongoing DARE+ transformation and focus on enterprise and cybersecurity. Those programs sit behind expectations for higher operational ROI, stronger EBITDA and a forecast return on equity of 22.2% in three years.

    Against that backdrop, risks flagged around interest coverage, timing of Ensign revenue, spectrum costs and an unstable dividend record remain front of mind for anyone watching catalysts. The index change mainly affects how some institutional investors might hold the stock, while execution on DARE+ and enterprise growth continues to drive the practical story.

    StarHub's narrative projects forecast revenues of SGD2.2b and earnings of SGD109.9 million by 2029, anchored on analyst assumptions that revenue stays broadly flat and that profit margins compress from 13.0% today to 4.9% over the same period. This implies an earnings decline of SGD175.8 million from current earnings of SGD285.7 million.

    Uncover why StarHub's fair value aligns with its current price.

    SGX:CC3 1-Year Stock Price Chart
    SGX:CC3 1-Year Stock Price Chart

    Exploring Other Perspectives

    Some of the most optimistic analysts lean hard on StarHub’s enterprise order book, which they expect to reach about SGD2.5b of revenue and SGD94.3 million of earnings by 2029, even though their models were set before this index exit. You can treat today’s change as a fresh prompt to compare those views with your own.

    Explore 3 other StarHub fair value estimates, including one that suggests as much as 356% upside from the current price.

    Decide For Yourself

    Don't just follow the ticker; dig into the data and build a conviction that's truly your own.

    Looking For More Ideas Beyond StarHub?

    If StarHub's index removal has you rethinking concentration risk, it can help to line it up against other companies with different profiles. Use the Simply Wall St Screener to broaden your watchlist and test how StarHub compares on quality, income and resilience.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.