Equity Research : Portugal Telecom

Abstract

In the distinct fields of valuation, and in particular in Equity Research, theory and practice should be accurately combined as way to obtain the most consistent outcome which adheres to reality. The present dissertation aims at answering this need through bridging the review of relevant literature with the valuation of the leading telecommunications operator Portugal Telecom in practical terms. The year-end 2012 price target derived from the company’s stock is 5,01Euro per share, implying a Buy recommendation. Caixa Banco de Investimento’s research is additionally analyzed and used as basis for comparison for both the methodologies followed and results yielded