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Equity research NOS SGPS SA - case study on the financial policy towards 6G

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Resumo:The present document consists of an Equity Research report on NOS SGPS, S.A. (NOS.LS). NOS is an established and leading telecommunications company in Portugal offering a diverse range 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. To value the company, a Sum-of-the-Parts approach was employed where a discounted cash flow analysis, based on FCFF, was developed for 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 number of stress tests. This report was used for the local Portuguese CFA Institute Research Challenge. To complement the original research presented during the competition, a case study was elaborated focusing on the existing financial policies that companies might adopt and their impacts on financial statements. Furthermore, it aims to identify the optimal financial policy for the company in preparation for the expected significant investment in deploying the 6G grid, which will succeed the recent deployment of 5G and is scheduled for the beginning of the next decade. The case study’s elaborations also has into consideration the original analysis of the company’s current position and competitive environment along with a number of constraints to guide its execution. Please note that this report includes only publicly available information until January 12th, 2024.
Autores principais:Vieira, João Poiret de Mendonça e de Saldanha
Assunto:Equity Research Valuation Mergers & Acquisitions
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
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author Vieira, João Poiret de Mendonça e de Saldanha
author_facet Vieira, João Poiret de Mendonça e de Saldanha
Vieira, João Poiret de Mendonça e de Saldanha
author_role author
contributor_name_str_mv Barros, Victor
Repositório Científico de Acesso Aberto da ULisboa
country_str PT
creators_json_str [{\"Person.name\":\"Vieira, João Poiret de Mendonça e de Saldanha\"}]
datacite.contributors.contributor.contributorName.fl_str_mv Barros, Victor
Repositório Científico de Acesso Aberto da ULisboa
datacite.creators.creator.creatorName.fl_str_mv Vieira, João Poiret de Mendonça e de Saldanha
datacite.date.Accepted.fl_str_mv 2024-07-01T00:00:00Z
datacite.date.available.fl_str_mv 2024-12-02T10:53:54Z
datacite.date.embargoed.fl_str_mv 2024-12-02T10:53:54Z
datacite.rights.fl_str_mv http://purl.org/coar/access_right/c_abf2
datacite.subjects.subject.fl_str_mv Equity Research
Valuation
Mergers & Acquisitions
datacite.titles.title.fl_str_mv Equity research NOS SGPS SA - case study on the financial policy towards 6G
dc.contributor.none.fl_str_mv Barros, Victor
Repositório Científico de Acesso Aberto da ULisboa
dc.creator.none.fl_str_mv Vieira, João Poiret de Mendonça e de Saldanha
dc.date.Accepted.fl_str_mv 2024-07-01T00:00:00Z
dc.date.available.fl_str_mv 2024-12-02T10:53:54Z
dc.date.embargoed.fl_str_mv 2024-12-02T10:53:54Z
dc.format.none.fl_str_mv application/pdf
dc.identifier.none.fl_str_mv http://hdl.handle.net/10400.5/95834
dc.language.none.fl_str_mv eng
dc.publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
dc.rights.none.fl_str_mv http://purl.org/coar/access_right/c_abf2
dc.subject.none.fl_str_mv Equity Research
Valuation
Mergers & Acquisitions
dc.title.fl_str_mv Equity research NOS SGPS SA - case study on the financial policy towards 6G
dc.type.none.fl_str_mv http://purl.org/coar/resource_type/c_bdcc
description The present document consists of an Equity Research report on NOS SGPS, S.A. (NOS.LS). NOS is an established and leading telecommunications company in Portugal offering a diverse range 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. To value the company, a Sum-of-the-Parts approach was employed where a discounted cash flow analysis, based on FCFF, was developed for 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 number of stress tests. This report was used for the local Portuguese CFA Institute Research Challenge. To complement the original research presented during the competition, a case study was elaborated focusing on the existing financial policies that companies might adopt and their impacts on financial statements. Furthermore, it aims to identify the optimal financial policy for the company in preparation for the expected significant investment in deploying the 6G grid, which will succeed the recent deployment of 5G and is scheduled for the beginning of the next decade. The case study’s elaborations also has into consideration the original analysis of the company’s current position and competitive environment along with a number of constraints to guide its execution. Please note that this report includes only publicly available information until January 12th, 2024.
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id ul_bd0b8aec2c6ea41d52e51160d2064340
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instname_str Universidade de Lisboa
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person_str_mv Vieira, João Poiret de Mendonça e de Saldanha
publishDate 2024
publisher.none.fl_str_mv Instituto Superior de Economia e Gestão
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spelling engInstituto Superior de Economia e Gestãopt_PTThe present document consists of an Equity Research report on NOS SGPS, S.A. (NOS.LS). NOS is an established and leading telecommunications company in Portugal offering a diverse range 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. To value the company, a Sum-of-the-Parts approach was employed where a discounted cash flow analysis, based on FCFF, was developed for 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 number of stress tests. This report was used for the local Portuguese CFA Institute Research Challenge. To complement the original research presented during the competition, a case study was elaborated focusing on the existing financial policies that companies might adopt and their impacts on financial statements. Furthermore, it aims to identify the optimal financial policy for the company in preparation for the expected significant investment in deploying the 6G grid, which will succeed the recent deployment of 5G and is scheduled for the beginning of the next decade. The case study’s elaborations also has into consideration the original analysis of the company’s current position and competitive environment along with a number of constraints to guide its execution. Please note that this report includes only publicly available information until January 12th, 2024.application/pdfpt_PTEquity research NOS SGPS SA - case study on the financial policy towards 6GVieira, João Poiret de Mendonça e de SaldanhaBarros, VictorHostingInstitutionOrganizationalRepositório Científico de Acesso Aberto da ULisboae-mailmailto:repositorio@reitoria.ulisboa.ptrepositorio@reitoria.ulisboa.pt2024-12-02T10:53:54Z2024-072024-07-01T00:00:00ZHandlehttp://hdl.handle.net/10400.5/95834http://purl.org/coar/access_right/c_abf2open accessEquity ResearchValuationMergers & Acquisitions2966912 bytesliteraturehttp://purl.org/coar/resource_type/c_bdccmaster thesishttp://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://repositorio.ulisboa.pt/bitstreams/6d5d7751-7dc9-4066-9de5-d1318223b35d/download
spellingShingle Equity research NOS SGPS SA - case study on the financial policy towards 6G
Equity research NOS SGPS SA - case study on the financial policy towards 6G
Vieira, João Poiret de Mendonça e de Saldanha
Equity Research
Valuation
Mergers & Acquisitions
Vieira, João Poiret de Mendonça e de Saldanha
Equity Research
Valuation
Mergers & Acquisitions
status SINGLETON
subject.fl_str_mv Equity Research
Valuation
Mergers & Acquisitions
title Equity research NOS SGPS SA - case study on the financial policy towards 6G
title_full Equity research NOS SGPS SA - case study on the financial policy towards 6G
title_fullStr Equity research NOS SGPS SA - case study on the financial policy towards 6G
Equity research NOS SGPS SA - case study on the financial policy towards 6G
title_full_unstemmed Equity research NOS SGPS SA - case study on the financial policy towards 6G
Equity research NOS SGPS SA - case study on the financial policy towards 6G
title_short Equity research NOS SGPS SA - case study on the financial policy towards 6G
title_sort Equity research NOS SGPS SA - case study on the financial policy towards 6G
topic Equity Research
Valuation
Mergers & Acquisitions
topic_facet Equity Research
Valuation
Mergers & Acquisitions
url http://hdl.handle.net/10400.5/95834
visible 1