Title: Valuation study of Hellenic Telecommunications Organisation S.A.
Authors: Anna A. Pappa
Addresses: Directorate of Administration and Financial Services, Technological Educational Institute of Epirus, Gefira Arachthou, 47100 Arta, P.O. Box 110, Greece
Abstract: In this article the financial position of Hellenic Telecommunications Organisation S.A. is analysed and evaluated by a consistent free cash flow to firm model taking into consideration the expected restructuring of group which is needed for the company's sustainability. The results obtained by this model are also validated by a comparable valuation of firm vs. its European peers through the three most common equity value multiples namely the price-to-earnings (P/E) ratio, the price-to-book (P/B) ratio and the price-to-sales (P/S) ratio. Consequently, the target price for the market capital of Hellenic Telecommunications Organisation S.A. is provided under a realistic and sustainable restructuring scenario of group.
Keywords: free cash flow to firm; FCFF; comparable valuation; multiples valuation; Greece; telecommunications industry; price-to-earnings; P/E ratio; price-to-book; P/B ratio; price-to-sales; P/S ratio; market capital; Hellenic Telecommunications Organisation S.A.; company restructuring.
International Journal of Business Innovation and Research, 2015 Vol.9 No.2, pp.188 - 209
Published online: 15 Apr 2015 *Full-text access for editors Access for subscribers Purchase this article Comment on this article