TELEF BRASILON

Telefônica Brasil operates as a mobile telecommunications company in Brazil. It offers fixed line services, including local and international calls, and mobile services with voice, broadband internet, and value-added services. The company also provides data services, pay TV services, network services, wholesale services, and digital services. Additionally, it offers multimedia communication services and sells devices such as smartphones and modems. Telefônica Brasil markets its solutions through own stores, dealers, and distribution channels. The company was formerly known as Telecomunicações de São Paulo S.A. and changed its name in October 2011.

Overview

Sector

Telecom Services

Target Price

64.1 BRL

Current Price

30.9 BRL

Potential

107%

Strengths

With an appreciation Potential of 104.83%, based on our fundamental analysis, it suggests the stock may be undervalued.
Current Price to Earnings Ratio (18.35) is lower than the sector mean (139.31).
Price to book ratio (1.46) is lower than the sector mean (2.58).
The company has low debt. Net Debt to EBITDA Ratio is -0.05 and it is lower than the sector mean.
The company has high returns. ROIC (26.42%) is higher than the sector mean (12.43%).
EV/EBITDA (4.45) is lower than the sector mean (15.00).
EV/EBIT (13.70) is lower than the sector mean.
Price to free cash flow (9.65) is lower than the sector mean.
Strong EBITDA Margin of 29.45%.

Weaknesses

No significant weaknesses identified based on the analyzed metrics.

Key Financial Data

Indicator	Value
PER	18.1
EV/EBITDA	4.4
Price/Free Cash Flow'	9.5
ROIC	26.4%
Net Debt/EBITDA	-0.1