Biuro Maklerskie PKO BP: company valuation at PLN 1,230-1,318 million (PLN 55-59 per share per year) according to the comparative method and PLN 910-1,004 million (PLN 41-45 per share) according to DCF

 ‘Mission: Possible’, paraphrasing the title of the classic film and TV series, is the title of the financial analysis of TIM SA prepared by the PKO BP Brokerage House. The analysts forecast further record financial results for the company. 2022 revenues are expected to increase by 21 y/y, while EBITDA – by 12% y/y. 

The authors of the analysis predict that the current economic situation (‘in particular, high inflation rate and the booming construction sector’) combined with the development and new customer acquisition strategy announced in May 2022 will be instrumental in helping TIM achieve its record results. They describe the strategy as ‘ambitious but not impossible’. They also do not expect the postponement of 3LP SA’s IPO and further development-related investments to have a negative impact on the dividend policy of TIM. 

Based on the DCF model, BM PKO BP analysts established the company’s valuation at 06.06.2023 in the range of PLN 910-1,004 million, i.e. PLN 41-45 per share. The valuation on the basis of the comparative analysis amounts to PLN 1,230.3-1,318.3 million (average for 2022-2024P), i.e. PLN 55-59 per share. 

You can download the analysis from Comments, analyses, recommendations.