VIV Valuation

Telefonica Brasil SA

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12.670

-0.09(-0.705%)1D

Overview
Forecast
Valuation
Earnings

VIV Relative Valuation

VIV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, VIV is overvalued; if below, it's undervalued.

Historical Valuation

Telefonica Brasil SA (VIV) is now in the Fair zone, suggesting that its current forward PE ratio of 14.55 is considered Fairly compared with the five-year average of 14.35. The fair price of Telefonica Brasil SA (VIV) is between 10.67 to 14.26 according to relative valuation methord.

Relative Value

Fair Zone

10.67-14.26

Current Price：12.76

Fair

14.55

Trailing

Forward

4.59

EV/EBITDA

Telefonica Brasil SA. (VIV) has a current EV/EBITDA of 4.59. The 5-year average EV/EBITDA is 4.25. The thresholds are as follows: Strongly Undervalued below 3.61, Undervalued between 3.61 and 3.93, Fairly Valued between 4.57 and 3.93, Overvalued between 4.57 and 4.88, and Strongly Overvalued above 4.88. The current Forward EV/EBITDA of 4.59 falls within the Overvalued range.

10.42

EV/EBIT

Telefonica Brasil SA. (VIV) has a current EV/EBIT of 10.42. The 5-year average EV/EBIT is 10.73. The thresholds are as follows: Strongly Undervalued below 8.57, Undervalued between 8.57 and 9.65, Fairly Valued between 11.81 and 9.65, Overvalued between 11.81 and 12.88, and Strongly Overvalued above 12.88. The current Forward EV/EBIT of 10.42 falls within the Historic Trend Line -Fairly Valued range.

1.75

Telefonica Brasil SA. (VIV) has a current PS of 1.75. The 5-year average PS is 1.53. The thresholds are as follows: Strongly Undervalued below 1.17, Undervalued between 1.17 and 1.35, Fairly Valued between 1.72 and 1.35, Overvalued between 1.72 and 1.90, and Strongly Overvalued above 1.90. The current Forward PS of 1.75 falls within the Overvalued range.

5.31

P/OCF

Telefonica Brasil SA. (VIV) has a current P/OCF of 5.31. The 5-year average P/OCF is 4.45. The thresholds are as follows: Strongly Undervalued below 3.50, Undervalued between 3.50 and 3.97, Fairly Valued between 4.92 and 3.97, Overvalued between 4.92 and 5.40, and Strongly Overvalued above 5.40. The current Forward P/OCF of 5.31 falls within the Overvalued range.

10.83

P/FCF

Telefonica Brasil SA. (VIV) has a current P/FCF of 10.83. The 5-year average P/FCF is 9.03. The thresholds are as follows: Strongly Undervalued below 5.62, Undervalued between 5.62 and 7.33, Fairly Valued between 10.74 and 7.33, Overvalued between 10.74 and 12.45, and Strongly Overvalued above 12.45. The current Forward P/FCF of 10.83 falls within the Overvalued range.

Telefonica Brasil SA (VIV) has a current Price-to-Book (P/B) ratio of 3.21. Compared to its 3-year average P/B ratio of 1.35 , the current P/B ratio is approximately 138.02% higher. Relative to its 5-year average P/B ratio of 1.25, the current P/B ratio is about 155.49% higher. Telefonica Brasil SA (VIV) has a Forward Free Cash Flow (FCF) yield of approximately 9.68%. Compared to its 3-year average FCF yield of 12.54%, the current FCF yield is approximately -22.81% lower. Relative to its 5-year average FCF yield of 12.76% , the current FCF yield is about -24.14% lower.

3.21

P/B

Median3y

1.35

Median5y

1.25

9.68

FCF Yield

Median3y

12.54

Median5y

12.76

Performance Decomposition

Market capitalization of VIV increased by 24.25% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 30.41 to 37.75.

The secondary factor is the Margin Expansion, contributed 1.56%to the performance.

Overall, the performance of VIV in the past 1 year is driven by P/E Change. Which is more unsustainable.

-1.46%

2.62B → 2.58B

Revenue Growth

1.56%

9.00 → 9.14

Margin Expansion

24.15%

30.41 → 37.75

P/E Change

24.25%