Author Topic: TI-A Telecom Italia  (Read 15604 times)

gary17

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Re: TI-A Telecom Italia
« Reply #20 on: February 05, 2014, 05:38:51 PM »
PJM - I did not get EV/EBITDA at 3.... see the spreadsheet attached - seems like the company is about 8.

Packer - for TI-A.

according to IR - http://www.telecomitalia.com/tit/en/investors/financials/consolidated-operating-financial-data.html
ebitda for first 9 month is about 7.9B euro or 10.53B euro
let's use 6.5 multiple EV = 68B euro
net debt = 28B euro
so value of MC should be about 40B euro if we based this on 6.5 multiple.

I am not sure how the ordinary and the A saving shares work when it comes to calculating the company's market cap.  I look at google finance and Ti and TI-A give different Market caps.

thanks


PJM

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Re: TI-A Telecom Italia
« Reply #21 on: February 05, 2014, 06:15:32 PM »
PJM - I did not get EV/EBITDA at 3.... see the spreadsheet attached - seems like the company is about 8.

Packer - for TI-A.

according to IR - http://www.telecomitalia.com/tit/en/investors/financials/consolidated-operating-financial-data.html
ebitda for first 9 month is about 7.9B euro or 10.53B euro
let's use 6.5 multiple EV = 68B euro
net debt = 28B euro
so value of MC should be about 40B euro if we based this on 6.5 multiple.

I am not sure how the ordinary and the A saving shares work when it comes to calculating the company's market cap.  I look at google finance and Ti and TI-A give different Market caps.

thanks

EV calculation in spreadsheet is incorrect I guess, so as per your spreadsheet the EV/EBITDA is 5.5

gary17

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Re: TI-A Telecom Italia
« Reply #22 on: February 05, 2014, 06:19:14 PM »
Not an accountant. Sorry. But I thought EV is market cap plus debt less cash.

gary17

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Re: TI-A Telecom Italia
« Reply #23 on: February 05, 2014, 06:26:44 PM »
You are right. I did subtraction from MC should have done addition. So yes 5.5.

If this is 6.5 then about 12B USD.

Packer16

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Re: TI-A Telecom Italia
« Reply #24 on: February 06, 2014, 03:38:33 AM »
I come with about the same market cap of $54b.  I impute the same value for the savings and non-savings shares because the savings shares have a higher dividend per share and dividend yield and as minority shareholders my ability to effect control is small with either voting or non-voting shares.

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phil_Buffett

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Re: TI-A Telecom Italia
« Reply #25 on: February 06, 2014, 03:51:22 AM »
whats the exact market cap of Telecom italia? i dont find exact figures. the normal stock is around 12b. euros and the saving stock around 4b. euros. so only 16b. euro market cap today?

Packer16

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Re: TI-A Telecom Italia
« Reply #26 on: February 06, 2014, 03:59:12 AM »
I impute about $16b from the savings shares.

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phil_Buffett

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Re: TI-A Telecom Italia
« Reply #27 on: February 06, 2014, 04:04:42 AM »
I impute about $16b from the savings shares.

Packer

ok thank you packer.  :)

gary17

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Re: TI-A Telecom Italia
« Reply #28 on: February 06, 2014, 06:43:48 AM »
So 16b vs 54b,,,, seems like a good safety margin.

packer, I'm wondering if you know if other institution value investors have taken a large position in this ...  Their website has a fraction break down but doesn't get into the specifics.

Also, do you like the management?

Thanks !!

gary17

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Re: TI-A Telecom Italia
« Reply #29 on: February 07, 2014, 07:55:50 AM »
Thanks for the idea...... I bought some today.....  Just looking at Bell (BCE) in Canada and seems similar to Telecom Italia - but BCE is trading at 7x ebitda  with a 37% margin  while TI is cheaper at has 39% margin...   better than gncma even... interesting          gary