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Telefonica Brasil SA
NYSE:VIV

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Telefonica Brasil SA
NYSE:VIV
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Price: 15.87 USD -1.92% Market Closed
Market Cap: $26.2B

EV/OCF

6.7
Current
148%
More Expensive
vs 3-y average of 2.7

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
6.7
=
Enterprise Value
$146.6B
/
Operating Cash Flow
R$20.7B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
6.7
=
Enterprise Value
$146.6B
/
Operating Cash Flow
R$20.7B

Valuation Scenarios

Telefonica Brasil SA is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (2.7), the stock would be worth $6.39 (60% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-67%
Maximum Upside
+32%
Average Downside
31%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 6.7 $15.87
0%
3-Year Average 2.7 $6.39
-60%
5-Year Average 2.2 $5.24
-67%
Industry Average 4.8 $11.37
-28%
Country Average 8.9 $21
+32%

Forward EV/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
BR
Telefonica Brasil SA
NYSE:VIV
131.1B USD 6.7 21.2
US
Verizon Communications Inc
NYSE:VZ
193.9B USD 8.5 11.3
US
AT&T Inc
NYSE:T
182.8B USD 7.2 8.4
DE
Deutsche Telekom AG
XETRA:DTE
132.7B EUR 6.1 13.8
CN
China Telecom Corp Ltd
SSE:601728
542.6B CNY 3.8 16.4
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY 8.5 11.6
SG
Singapore Telecommunications Ltd
SGX:Z74
78.9B SGD 16.4 12.5
FR
Orange SA
PAR:ORA
46B EUR 6.6 85.5
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 10.2 12.8
CH
Swisscom AG
SIX:SCMN
34.1B CHF 8 27.2
AU
Telstra Group Ltd
F:5KB
37B EUR 9.8 27.2

Market Distribution

Lower than 98% of companies in Brazil
Percentile
2nd
Based on 434 companies
2nd percentile
1.3
Low
0.2 — 5.8
Typical Range
5.8 — 12.8
High
12.8 —
Distribution Statistics
Brazil
Min 0.2
30th Percentile 5.8
Median 8.9
70th Percentile 12.8
Max 3 401.7

Telefonica Brasil SA
Glance View

Market Cap
26.2B 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
10.35 USD
Overvaluation 35%
Intrinsic Value
Price $15.87
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