* Note: Prices are in Million (M) USD.
Description:
TIM SA is a telecommunications company in Brazil. The company is headquartered in Rio de Janeiro, Brazil.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $3,259 M
Debt : $15,611 M
EBITDA : $10,584 M
Net Debt (Debt - Cash): $12,353 M
Since Net Debt is covered by EBITDA within 2 years, 2 points assigned.
This criteria used industry in which company operates:
Sector: TECHNOLOGY
Industry: TELEPHONE COMMUNICATIONS (NO RADIOTELEPHONE)
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 12.92
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Average Free Cash Flow: $2,129 M
Average Revenue: $16,543 M
Revenue Converted To Free Cash Flow (%): 13%
Avg Free Cash Flow Growth Per Year (Last 5 Years): 22.79%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $25,448 M
Revenue 4 Years Ago (2020-12-31): $17,268 M
Last 5 Years Average Revenue Growth: 9%
Since Revenue Growth is between 5 - 10, 2 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $484 M
Share Count 5 Years Ago (2020-12-31): $484 M
Company is buying back its own shares, 3 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $1.68
Trailing 12-Month Earnings Per Share (EPS): $1.46
Average Earnings Per Share (EPS): $1.57
Dividend Per Share (DPS): $1
Payout Ratio: 38%
Dividend Yield: 8%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Average ROE: 9%
Since Average ROE is less than 10, 1 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $20
52-Week Low: $11
Threshold Price (15% Above 52-Week Low): $12
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $9,880 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Value-Trade has assigned 27 points to above TIM Participacoes SA (TIMB) stock.
Last 4 Years Avg PE (Limited to last 4 years of EPS data) 14.06, Fair Value PE 25, Industry Based PE is 14 and Growth based PE is 10. Based on these all values average assigned is 15.77.
Value-Trades has assined P/E value 15.77. Since an average (Current Year EPS + Next Year EPS) earning per share is $1.57015.
The fair value of TIM Participacoes SA (TIMB) stock should be (15.77 x $1.57015) = $24.76
