Cairo – Mubasher: Mubasher Trade Research (MTR) said it initiated its coverage of Telecom Egypt with hold/moderate risk and target price of EGP 10.95 per share.
MTR used two valuation models to value Telecom Egypt, which are Discounted cash flow (DCF), resulting in EGP8.34/share, of which the mobile business was valued at negative EGP3.03/share.
While the second valuation approach is Multiples valuation based on 2016e EV/EBITDA, resulting in a fair value of EGP11.02/share (after a 20% discount on multiple).
MTR assigned 80%/20% weights to both models, respectively, reaching a fair value of EGP8.87/share, implying a one-year price target (PT) of EGP10.95/share (ETR +17.5%).
