Publicação
Equity research NOS, SGPS S.A. - an integrated value approach
| Resumo: | The present document consists of an Equity Research report on NOS SGPS, S.A. (NOS.LS). NOS is a leading telecommunications company in Portugal offering a variety of services, including Fixed Pay TV, Fixed Voice, Fixed Broadband, Mobile, IoT, and Data Management services. This report issues a Buy recommendation for NOS, with a 2024YE price target of €4.15/share. This value was reached through a DCF model based on FCFF and having a Sum-of-the-Parts approach to each segment (Telco and A&C). This valuation represents an upside potential of 27% from the January 12th, 2024 closing price of €3.27, with a medium-low risk. To support this analysis, other methods such as Relative Valuation were developed, as well as a multitude of stress tests. This report was used for the local Portuguese CFA Institute Research Challenge. To complement the original research used in the competition, a new approach was taken to find a proxy for the company’s Integrated Value. This concept goes beyond the traditional financial value calculation by extending its scope to include environmental and social dimensions. The analysis was conducted by updating the model present in the book Corporate Finance for Long-Term Value (Schoenmaker and Schramade, 2023) and applying it to the specific case of NOS. The results indicate that the previous Buy recommendation remains valid. Note that this report only contains public information up to January 12th, 2024. |
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| Autores principais: | Cunha, Manuel Vieira |
| Assunto: | Equity Research Valuation Telecommunications Integrated Value Equity Research Avaliação de Empresas Telecomunicações Valor Integrado |
| Ano: | 2024 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade de Lisboa |
| Idioma: | inglês |
| Origem: | Repositório da Universidade de Lisboa |
| Resumo: | The present document consists of an Equity Research report on NOS SGPS, S.A. (NOS.LS). NOS is a leading telecommunications company in Portugal offering a variety of services, including Fixed Pay TV, Fixed Voice, Fixed Broadband, Mobile, IoT, and Data Management services. This report issues a Buy recommendation for NOS, with a 2024YE price target of €4.15/share. This value was reached through a DCF model based on FCFF and having a Sum-of-the-Parts approach to each segment (Telco and A&C). This valuation represents an upside potential of 27% from the January 12th, 2024 closing price of €3.27, with a medium-low risk. To support this analysis, other methods such as Relative Valuation were developed, as well as a multitude of stress tests. This report was used for the local Portuguese CFA Institute Research Challenge. To complement the original research used in the competition, a new approach was taken to find a proxy for the company’s Integrated Value. This concept goes beyond the traditional financial value calculation by extending its scope to include environmental and social dimensions. The analysis was conducted by updating the model present in the book Corporate Finance for Long-Term Value (Schoenmaker and Schramade, 2023) and applying it to the specific case of NOS. The results indicate that the previous Buy recommendation remains valid. Note that this report only contains public information up to January 12th, 2024. |
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