Telstra has done well for its shareholders over the past several years but is the party over

Telstra has done well for its shareholders over the past several years but is the party over? Very good returns often come about as part of a process where prices move from being cheap to being fair value, or expensive. When prices become expensive, the balance of probability tilts against investors, and a move back towards underlying fair value becomes more likely than continued gains. So does TLS have the ability to grow intrinsic value at a rate that can sustain returns into the future? If it doesn't, then greater attention needs to be paid to the current intrinsic value, and what it would mean if the share price were to move closer to that intrinsic value. Over the past decade, TLS has delivered nearly flat EPS. Unless the future looks very different to the past, TLS is unlikely to deliver material growth in intrinsic value going forward. (VIEW LINK)