I really wonder what sort of valuation Turkcell (TKC) would get if it weren't operating in Turkey. Management has done a very good job here in terms of execution, and I largely agree with the company's growth priorities … but double-digit revenue growth and improving EBITDA margins are only worth so much when your country's currency has lost two-thirds of its value in just five years.
Turkcell remains a very small position that I carry mostly for the purposes of "loss farming" (carrying a tax loss to offset a gain someday) and mostly out of spite, since it irritates me to no end that Turkcell's strong operational performance has been canceled out by the inept leadership of Turkey. In any case, I do think Turkcell is meaningfully undervalued, but I don't know that any large Turkish company will get much love in the market until there's a change in the government in Ankara.
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Turkcell Continues To Execute Very Well, But Macro Issues Cancel Out The Benefits
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