CFA research challenge - NOS equity valuation:

Abstract

NOS SGPS, S.A. is one of the key players in the Portuguese Telecommunication Market and, on 06/11/23 its share price was trading at € 3.51. This research concludes on a buy recommendation with a target price of € 4.18 representing an upside of 19.07%. The recommendation is based on three main drivers: (1) Technology & CapEx Cycles (2)°Leadership position in 5G technology with robust offers and high customer satisfaction (3)°Resilient financial performance, shifting from growth targeting to cost efficiency, which will enable stable cash flow generation. The individual part of Lukas Andrin Lietzow focuses on integrating Value at Risk and Earnings at Risk into the Discounted Cash Flow methodology as additional risk metrics for the valuation of NOS SGPS.