Equity valuation of NOS SGPS S.A.

Student thesis: Master's Thesis

Abstract

In the field of Equity Valuation, the theory should go hand in hand with practise. The present dissertation aims at answering this need through the review of the relevant literature with the valuation of NOS SGPS, a Portuguese media holding company engaged in the telecommunication and audiovisual business. My year-end 2016 target price of €9.7 per share is based on the Sum-of-Parts Approach, valuing separately NOS’ business segments and its equity investments in ZAP and Sport TV. Credit Suisse’s equity research is then presented as a basis for comparison. I find that the lower target price of Credit Suisse (€8.1 per share), reflects an increased country risk associated with Portugal. Testing the 10-year Portuguese bond spread as ERP in the Telco DCF Valuation yields a target price of €8 per share, very close to the target price presented by Credit Suisse, so this clearly reinforces my BUY recommendation.
Date of Award28 Oct 2016
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorFrancisco Bernardo Leal Xavier (Supervisor)

Designation

  • Mestrado em Finanças

Cite this

'