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Telefonica Brasil SA
NYSE:VIV

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Telefonica Brasil SA
NYSE:VIV
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Price: 15.8002 USD -0.44%
Market Cap: $26.1B

EV/IC

1.2
Current
156%
More Expensive
vs 3-y average of 0.5

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.2
=
Enterprise Value
$146.6B
/
Invested Capital
R$111.1B

Enterprise Value to Invested Capital (EV/IC) ratio compares a company`s total enterprise value to the capital invested in its business. It shows how efficiently the company`s market value reflects the funds used to generate returns.

EV/IC
1.2
=
Enterprise Value
$146.6B
/
Invested Capital
R$111.1B

Valuation Scenarios

Telefonica Brasil SA is trading above its 3-year average

If EV/IC returns to its 3-Year Average (0.5), the stock would be worth $6.17 (61% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-68%
Maximum Upside
No Upside Scenarios
Average Downside
45%
Scenario EV/IC Value Implied Price Upside/Downside
Current Multiple 1.2 $15.8
0%
3-Year Average 0.5 $6.17
-61%
5-Year Average 0.4 $5.13
-68%
Industry Average 1 $13.52
-14%
Country Average 0.8 $10.13
-36%

Forward EV/IC
Today’s price vs future invested capital

Not enough data available to calculate forward EV/IC

Peer Comparison

All Multiples
EV/IC
P/E
All Countries
Close
Market Cap EV/IC P/E
BR
Telefonica Brasil SA
NYSE:VIV
125.4B USD 1.2 20.3
US
Verizon Communications Inc
NYSE:VZ
200.8B USD 0.9 11.6
US
AT&T Inc
NYSE:T
182B USD 0.8 8.6
DE
Deutsche Telekom AG
XETRA:DTE
133.4B EUR 0.9 13.9
CN
China Telecom Corp Ltd
SSE:601728
551.8B CNY 0.8 16.7
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY 0.7 11.7
SG
Singapore Telecommunications Ltd
SGX:Z74
75.8B SGD 2.1 12.2
FR
Orange SA
PAR:ORA
47.2B EUR 0.8 87.8
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 1.6 12.8
CH
Swisscom AG
SIX:SCMN
34.3B CHF 1.5 27.2
AU
Telstra Corporation Ltd
ASX:TLS
59.9B AUD 1.9 26.5

Market Distribution

Lower than 94% of companies in Brazil
Percentile
6th
Based on 496 companies
6th percentile
0.2
Low
0 — 0.6
Typical Range
0.6 — 1
High
1 —
Distribution Statistics
Brazil
Min 0
30th Percentile 0.6
Median 0.8
70th Percentile 1
Max 36.6

Telefonica Brasil SA
Glance View

Market Cap
26.1B USD
Industry
Telecommunication

Telefônica Brasil S.A., operating under the trusted brand name Vivo, is a prominent player in the Brazilian telecommunications landscape. Established as a subsidiary of the Spanish telecommunications giant Telefónica, Telefônica Brasil has adeptly navigated the complexities of Latin America’s largest economy by focusing on its core competencies: mobile and fixed telecommunications services. The company predominantly thrives in the mobile segment, where it offers a range of services from voice calls to data-heavy applications, capitalizing on the increasing smartphone penetration and the booming demand for reliable internet connectivity. Utilizing advanced infrastructure including 4G and burgeoning 5G networks, Vivo provides extensive coverage, ensuring robust service quality to its vast customer base. At the heart of how Telefônica Brasil makes money is its strategic emphasis on innovation and customer-centric solutions. The company derives revenue from a diverse mix of sources—mobile services account for a significant chunk, with a blend of postpaid and prepaid offerings tailored to meet varying consumer demands. Meanwhile, its fixed-line services, encompassing broadband, Pay TV, and fixed telephony, serve as crucial pillars supporting its revenue model. By bundling services and leveraging data-driven insights to enhance customer experience, Vivo promotes long-term loyalty, translating into stable recurring earnings. This approach not only reinforces its brand loyalty but also positions the company as a pivotal enabler of connectivity in the region, crucial to economic and social infrastructure.

VIV Intrinsic Value
10.3513 USD
Overvaluation 34%
Intrinsic Value
Price $15.8002
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