Sales

Other Income
EBITDA
EBIT
Net Income
Non Cash Charges
Cash
Total Assets
Current Liabilities
Long Term debt
Par Value per share
No. of shares (mn)
Share Price per Share

tata communicationsbharti airtelOnMobile Global

3409
38015.8
455.03
162.19
112.90
46.77
870.74
13557.7
165.57
296.01
8946.1
109.03
-61.17
7,641.80
91.64
304.53
11.80
.00
102.26
128.40
75.74
12,179.22
72,739.40
1,092.76
2,259.53
16,732.40
198.73
2,638.91
11,897.50
77.25
10.00
5.00
10.00
285.00
3,797.53
58.89
195.25
383.65
55.70

EBITDA Margin
Net Profit Margin
Earning multiple determinants
EPS
Sales Per Share
Book Value Per Share
CF Per share...(aprox.)
Value Multiple Determinants
EV/Sales
EV/EBITDA
EV/EBIT

25.54%
-1.79%

35.66%
20.10%

36.39%
20.14%

reliance communications idea cellular

12,129.77
15,389.00
484.25
.00
2,991.41
3,481.64
1,480.17
1,930.43
-1,178.26
832.92
.00
91.61
82.18
280.44
84,134.54
22,435.17
9,223.37
4,451.52
24,478.28
6,526.42
5.00
10.00
2,064.03
3,303.27
73.95
?????
24.66%
-9.71%

22.62%
5.41%
idea cellular
.25
4.66
3.47
.28
Idea Cellular

EARNING MULTIPLES
tata communications
bharti airtel OnMobile Global
Sales (mn.)
3,409.00
38,015.80
455.03
Net Income (mn.)
-61.17
7,641.80
91.64
Total Assets (mn.)
12,179.22
56,007.00
1,092.76
Current Liabilities (mn.)
2,259.53
16,732.40
198.73
Long Term debt (mn.)
2,638.91
11,897.50
77.25
Total Liabilities (outsider's , mn.) 4,898.44
28,629.90
275.98
No. of shares
285,000,000.00
###
58,890,000.00
No. of shares (mn)
285.00
3,797.53
58.89
Non Cash Charges (mn.)
304.53
11.80
.00
Share Price per Share
195.25
383.65
55.70
Market Capitalization (mn.)
55646.25
1456922.4
3280.17
Earnings per share
-0.21
2.01
1.56
Sales per share
11.96
10.01
7.73
Book Value of equity (mn.)
7,280.8
27,377.1
816.8
Book value per share
25.55
7.21
13.87
Per share non-cash charges
1
0.00
P/E
-909.70
190.65
35.79
P/S
16.32
38.32
7.21
P/BV
7.64
53.22
4.02
P/CF (Aprox.)
228.66
190.36
35.79

Note:
Market Capitalization= Mkt value of equity=Share price per Share*No
of Shares
Earning per Share= Net Income/No of Shares

Reliance commnications
12,129.77
-1,178.26
74,977.17
9,223.97
24,478.28
33,702.25
2,064,026,881.00
2,064.03
.00
73.95
152634.79
-0.57
5.88
41,274.9
20
0.00
-129.54
12.58
3.70
-129.54

Min
455.03
-1,178.26
1,092.76
198.73
77.25
275.98
###
58.89
.00
55.70
3,280.17
-.57
5.88
816.78
7.21
.00
-909.70
7.21
3.70
-129.54

Industry
Max
38,015.80
7,641.80
74,977.17
16,732.40
24,478.28
33,702.25
###
3,797.53
304.53
383.65
1,456,922.40
2.01
11.96
41,274.92
25.55
1.07
190.65
38.32
53.22
228.66

Avg
13,502.40
1,623.50
36,064.04
7,103.66
9,772.99
16,876.64
###
1,551.36
79.08
177.14
417,120.90
.70
8.89
19,187.40
16.66
.27
-203.20
18.61
17.14
81.32

VALUE MULTIPLES
tata communications
bharti airtel
Sales mn.
3,409.00
38,015.80
EBITDA mn.
870.74
13,557.70
EBIT mn.
296.01
8,946.10
Cash mn.
102.26
128.40
Current Liabilities mn.
2,259.53
16,732.40
Long Term debt mn.
2,638.91
11,897.50
Total Liabilities (outsider's ) mn. 4,898.44
28,629.90
Share Price per Share
195.25
383.65
No. of shares
285,000,000.00
###
No. of shares (mn)
285.00
3,797.53
Market Capitalization(Mkt value 55,646.25
of equity, mn.)
1,456,922.40
Enterprise Value mn.
58,182.90 1,468,691.50
EV/Sales
17.07
38.63
EV/EBITDA
66.82
108.33
EV/EBIT
196.56
164.17

Note:
Market Capitalization= Mkt value of equity=Share price per Share*No of
Enterprise Value=Mkt Value of equity + Mkt value of debt - Cash

TIPLES
OnMobile Global
Reliance Communications
455.03
12,129.77
165.57
2,991.41
109.03
1,480.17
75.74
82.18
198.73
9,223.37
77.25
24,478.28
275.98
33,701.65
55.70
73.95
58,890,000.00
2,064,026,881.00
58.89
2,064.03
3,280.17
152,634.79
3,281.68
177,030.89
7.21
14.59
19.82
59.18
30.10
119.60

are price per Share*No of Shares

lue of debt - Cash

Min
455.03
165.57
109.03
75.74
198.73
77.25
275.98
55.70
###
58.89
3,280.17
3,281.68
7.21
19.82
30.10

Industry
Max
38,015.80
13,557.70
8,946.10
128.40
16,732.40
24,478.28
33,701.65
383.65
###
3,797.53
1,456,922.40
1,468,691.50
38.63
108.33
196.56

Avg
13,502.40
4,396.36
2,707.83
97.15
7,103.51
9,772.99
16,876.49
177.14
###
1,551.36
417,120.90
426,796.74
19.38
63.54
127.61

tata communications
bharti airtel
EBITDA Margin
25.54%
Net Profit Margin -1.79%

35.66%
20.10%

Earnings Multiples based valuation

Idea Cellular has an earnings margin lower than and closer to Bharti Airtel. Bharti Airtel has the highe
For the purpose of comparing earnings, we can take Bharti Airtel as the upper limit for Idea Cellular.
Since we don't have a company with lower EBITDA margin to idea Cellular, the lower limit could be se

Similarily we decide all the upper and lower limits between which we expect the price of Idea Cellular

The idea is to create a range in which one expects the Target company multiple to fall looking at the i
Subjectivity of the Range chosen by the analyst is allowed with a proper justification for the same.
Range

Multiple
P/E

Lower
Upper
P/S
Lower
Upper
P/BV
Lower
Upper
P/CF
Lower
Upper

Idea Cellular Price determinant

Idea Cellular Price
190
0.25
190.65
0.25
Idea Cellular Sales
38
4.66
38.32
4.66
Idea Cellular BV
17
3.47
17.14
3.47
Idea Cellular CF
190
0.28
190.36
0.28

Avegrage Price of Idea Cellular Based on Earnings multiple

No. Of Shares (mn.)
Total Value of Idea Cellular(mn.)

Value Multiples based valuation

To determin range and the lower limit of Value determinants lower limit has been taken by subjective
Upper limit could be taken by our understanding of a realistic upper limit.
Since Idea Cellular is lower in some parameters from Bharti Airtel, lowest Value of the peer value mult
An analyst can have her/his subjectvity about range selection if she/he has reasons to back his range.
Range

Multiple
EV/EBIT

Lower
Upper

Idea Cellular Enterprise Value determinant

196
164.17

1930.43
1930.43

17
38.63

15389
15389

EV/Sales
Lower
Upper

EV/EBITDA
Lower
Upper

66
108.33

3481.64
3481.64

Total Average value of Idea Cellular (mn.)

No. of Shares (mn.)
Per share value of Idea Cellular

Now we have two different values of Idea Cellular according to two different valuation rules.
You can use any valid combination to estimate comparative value of shares as long as the comparisio

On a comparative basis in the current market, the value of each equity share of Idea Cellu
This analysis does not capture the intrinsic value of the asset, but only look at the comparative value

This analysis is subject to choice of comparable companies and the estimated/chosen range for differe

OnMobile Global
36.39%
20.14%

reliance communications
idea cellular
24.66%
22.62%
-9.71%
5.41%

to Bharti Airtel. Bharti Airtel has the highest P/E multiple among the four at 190.65.
Airtel as the upper limit for Idea Cellular.
to idea Cellular, the lower limit could be set by a subjective judgement. Say we set it at 190.
which we expect the price of Idea Cellular to fall.

get company multiple to fall looking at the industry peers/comparables.

with a proper justification for the same.
Idea Cellular Price
47.91
48.07
177.03
178.52
58.96
59.46
53.18
53.28
84.55
3303.27
279298.03

ts lower limit has been taken by subjective judgement about the target.
tic upper limit.
i Airtel, lowest Value of the peer value multiples which is higher than Value multiple of Idea Cellular is taken as
on if she/he has reasons to back his range.
Idea Cellular Enterprise value
Non Current Debt

Cash

Market Value of the firm

378364.28
316918.69

6526.42
6526.42

280.44 372118.3
280.44
###

261613
594477.07

6526.42
6526.42

280.44
280.44

###
###

229788.24
377166.06

6526.42
6526.42

280.44
280.44

###
###
###
3303.27
107.01

g to two different valuation rules.

e value of shares as long as the comparision base is justifiable.

alue of each equity share of Idea Cellular has been estimated to be between Rs. 84.55 and Rs. 107.

et, but only look at the comparative value

and the estimated/chosen range for different multiples vis -a-vis the target company.

t it at 190.

e of Idea Cellular is taken as upper limit

Market Value of the firm

en Rs. 84.55 and Rs. 107.01.