Orange provides a range of fixed telephony and mobile telecommunications, data transmission, and other value-added services to consumers, businesses, and other telecommunications operators worldwide. The company was formerly known as France Telecom and changed its name to Orange in July 2013. Orange was founded in 1990 and is based in Paris, France.
ORAN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for ORAN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Orange ranked in the 90th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Orange ended up being:
35% of the company's capital comes from equity, which is greater than only 10.74% of stocks in our cash flow based forecasting set.
Orange's weighted average cost of capital (WACC) is 6%; for context, that number is higher than merely 0.41% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 18.43% of stocks in its sector (Communication Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ORAN, try CHU, ALSK, RBBN, GSAT, and SIFY.
France’s Orange SA announced an exclusive agreement to divest 50% of its fixed fibre assets for about €1.3 billion ($1.58 billion) to help rollout networks in rural France. As part of the deal, Orange (ORAN) has agreed to sell a 50% equity interest of Orange Concessions to a consortium of three investors, which are La Banque des Territoires (Caisse des Dépôts), CNP Assurances (CNP) and EDF Invest. The transaction, which is expected to close by the end of 2021, values Orange Concessions at €2.675 billion. As part of the deal, Orange and the consortium of investors will enter into a partnership to co-control the fibre network assets.
Press releaseParis, 22 January 2021 To support its fibre development in rural areas and underline the value of its infrastructure, Orange creates Orange Concessions through a partnership with long term investors With over 4.5 million FTTH plugs, Orange Concessions will be the leading fibre network operator in rural FranceFollowing a competitive process including leading international investors, the best offer to acquire a 50% co-controlling equity interest of Orange Concessions was from La Banque des Territoires (Caisse des Dépôts), CNP Assurances (« CNP ») and EDF Invest consortiumThis transaction values Orange Concessions at 2.675 billion eurosIn line with its Engage 2025 strategic plan, this partnership gives Orange the flexibility to reinforce its development in fibre, notably in ru...
Orange (ORAN) is a good income play right now even though its business has low growth prospects, given that it has a cheap valuation and offers a high-dividend yield that seems to be sustainable. Company Background Orange has a market capitalization of $31 billion and is listed on the New...
New research from Orange Business Services found that the supply chains in 40% of multinational corporations were unable to cope with the crisis created by the pandemic. The survey of 320 enterprises, focusing on the manufacturing, transport and logistics sectors, revealed that the global crisis has dramatically changed attitudes to risk.