Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

TIM S.A. (TIMS3.SA)

Company Dividend Discount ModelIndustry: Telecommunications ServicesSector: Communication Services

Valuation Snapshot

Stable Growth$28.82 - $57.56$40.03
Multi-Stage$23.48 - $25.53$24.48
Blended Fair Value$32.26
Current Price$23.50
Upside37.26%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS28.71%12.52%1.120.900.500.430.480.320.240.140.190.15
YoY Growth--25.07%81.36%14.98%-9.55%49.72%30.92%76.83%-27.73%27.71%-56.88%
Dividend Yield--6.25%5.05%3.94%3.13%3.76%2.56%2.06%0.97%1.88%1.86%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,028.93
(-) Cash Dividends Paid (M)3,311.28
(=) Cash Retained (M)717.64
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)805.79503.62302.17
Cash Retained (M)717.64717.64717.64
(-) Cash Required (M)-805.79-503.62-302.17
(=) Excess Retained (M)-88.14214.03415.47
(/) Shares Outstanding (M)2,419.282,419.282,419.28
(=) Excess Retained per Share-0.040.090.17
LTM Dividend per Share1.371.371.37
(+) Excess Retained per Share-0.040.090.17
(=) Adjusted Dividend1.331.461.54
WACC / Discount Rate10.38%10.38%10.38%
Growth Rate5.50%6.50%7.50%
Fair Value$28.82$40.03$57.56
Upside / Downside22.64%70.33%144.93%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,028.934,290.814,569.714,866.745,183.085,519.985,685.58
Payout Ratio82.19%83.75%85.31%86.88%88.44%90.00%92.50%
Projected Dividends (M)3,311.283,593.563,898.544,227.984,583.794,967.985,259.16

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate10.38%10.38%10.38%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)3,225.143,255.713,286.28
Year 2 PV (M)3,140.153,199.963,260.33
Year 3 PV (M)3,056.373,144.103,233.50
Year 4 PV (M)2,973.863,088.233,205.86
Year 5 PV (M)2,892.683,032.393,177.46
PV of Terminal Value (M)41,510.0543,515.0045,596.68
Equity Value (M)56,798.2459,235.3961,760.12
Shares Outstanding (M)2,419.282,419.282,419.28
Fair Value$23.48$24.48$25.53
Upside / Downside-0.10%4.19%8.63%

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