TIM Participacoes S.A. American Depositary Shares (Each representing 5 Common Shares) (TSU) Company Bio
TIM Participacoes S.A. offers mobile, fixed, and long distance telephony; data transmission, and broadband services in Brazil. The company was founded in 1998 and is based in Rio de Janeiro, Brazil.
TSU Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Tim Participacoes Sa with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Tim Participacoes Sa ranked in the 34th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Tim Participacoes Sa, consider:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 99. Its equity weight surpasses that of 88.52% of free cash flow generating stocks in the Communication Services sector.
The business' balance sheet reveals debt to be 1% of the company's capital (with equity being the remaining amount). Approximately only 4.78% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Tim Participacoes Sa's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than just 0% of US stocks with positive free cash flow.
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 TSU, try VZ, RBBN, CBB, CCOI, and TDS.