Managing Partner, VRS (Valuation & Research Specialists)

VRS (Valuation & Research Specialists)

Managing Partner

Valuation & Research Specialists (VRS) is a boutique financial advisor with more than 17 years of experience in Corporate Valuation and Finance, and a diversified client base including some of the largest Companies in Greece.

Since 2002, VRS has completed more than 200 engagements in the areas of business valuation and financial analysis for more than 100 clients in a wide range of industries.

VRS has been honored to work with small and large private and publicly traded companies in Europe and overseas.

Boutique Financial Advisor

Equity Bottom-Up

Telenet Group Holding NV / Equity Bottom-Up

<h3>The Company</h3>
<p>Telenet is a cable operator company, which offers residential and business customers video, broadband internet, fixed and mobile telephony services and other business services, including but not limited to hosting and cyber security, operating primarily in Belgium and some parts of Luxembourg. The company was founded in 1996 and its headquarters are in Mechelen, Belgium.</p>
<h3>Growth Drivers</h3>
<p>Telenet operates in the communications services industry and as a result, its profitability heavily relies on a combination of the quality of its video, internet and calling services, as well as the variety of entertainment and offers that the clients may choose from. Additionally, business services is a segment of the company’s revenues which could show the highest growth in the coming years, primarily due to the launch of 5G, the investments Telenet made to improve its services and the acquisition of Nextel Communications Inc.</p>
<h3>Valuation Results</h3>
<p>Our suggested target price for Telenet was derived by using a peer group valuation and a FCFF valuation. For our peer group, we’ve used historical EV/Sales and EV/EBITDA ratios which are commonly used for companies operating in Telenet’s sector. Our results indicate that Telenet is undervalued compared to its peers, with an estimated price per share of €45.09 or an upside potential of 45%. Additionally, our FCFF valuation suggests a price of €19.11 or a downside potential of 38.5%. Finally, after assigning a higher, 70% weight in the peer group method, we arrive at a target price of €37.30 or an upside potential of 19.94%, which is quite reasonable taking into account the nature of the company and the various investments it has undertaken during the past decade in order to refine its services.</p>

The Company
Telenet is a cable operator company, which offers residential and business customers video, broadband internet, fixed and mobile telephony services and other business services, including but not limited to hosting and cyber security, operating primarily in Belgium and some parts of Luxembourg. The company was founded in 1996 and its headquarters are in Mechelen, Belgium.
Growth Drivers
Telenet operates in the communications services industry and as a result, its profitability heavily relies on a combination of the quality of its video, internet and calling services, as well as the variety of entertainment and offers that the clients may choose from. Additionally, business services is a segment of the company’s revenues which could show the highest growth in the coming years, primarily due to the launch of 5G, the investments Telenet made to improve its services and the acquisition of Nextel Communications Inc.
Valuation Results
Our suggested target price for Telenet was derived by using a peer group valuation and a FCFF valuation. For our peer group, we’ve used historical EV/Sales and EV/EBITDA ratios which are commonly used for companies operating in Telenet’s sector. Our results indicate that Telenet is undervalued compared to its peers, with an estimated price per share of €45.09 or an upside potential of 45%. Additionally, our FCFF valuation suggests a price of €19.11 or a downside potential of 38.5%. Finally, after assigning a higher, 70% weight in the peer group method, we arrive at a target price of €37.30 or an upside potential of 19.94%, which is quite reasonable taking into account the nature of the company and the various investments it has undertaken during the past decade in order to refine its services.

Telenet Group Holding NV: Initiation of Coverage

Belgium

Telenet Group Holding NV provides telephone and internet services through a network of fiber-optic and coaxial cable.  The company offers customized packages to businesses and individual clients in Belgium.

Telenet Group Holding NV (TNET BB)

Telenet Group Holding NV: Initiation of Coverage

The Company Telenet is a cable operator company, which offers residential and business customers video, broadband internet, fixed and mobile...

VRS (Valuation & Research Specialists)