Telecom de Sao Paulo - Comparative Multiple Analysis

Telecom de Sao Paulo (Comparative Multiple Analysis)


Notes on the Comparative Multiple Analysis of Telecom de Sao Paulo

WikiWealth compares Telecom de Sao Paulo's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Telecom de Sao Paulo's comparative analysis.

Notes from the analysis:

1. WikiWealth uses quantitative measures to determine the multiple range for Telecom de Sao Paulo.
2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Telecom de Sao Paulo's debt holders.
3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples.
4. WikiWealth excludes outliers when calculating individual company multiples.

Helpful Information for Telecom de Sao Paulo's Analysis

How does this work? The Comparative Investment Analysis determines the value of Telecom de Sao Paulo by comparing Telecom de Sao Paulo financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups.

Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Telecom de Sao Paulo.

See the Telecom de Sao Paulo cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Telecom de Sao Paulo.

Also, see the Telecom de Sao Paulo's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Telecom de Sao Paulo's valuation conclusion for a quick summary.