Valuation model (Rosenbaum format) for Philippine setting
Originally published: 16/07/2020 08:09
Publication number: ELQ-63258-1
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Valuation model (Rosenbaum format) for Philippine setting

Valuation model for Philippine telecom setting using Rosenbaum format (for learning purposes)

If you are like me who learned from Investment Banking book written by Joshua Rosenbaum and Joshua Pearl and would like to apply it in the Philippine setting using only publicly available information, then you will love this tool.

All information in the excel file are scraped from Damodaran and Government websites (for the computation of the cost of equity). The purpose of this document is to give a starting point to everyone who is learning and practicing valuation models.

The company valued is Philippine Long Distance Telephone Company or PLDT, Inc. with a ticker symbol TEL in the Philippine Stock Exchange. I chose TEL because it has only one comparable company, here in the Philippines, which is Globe Telecom, Inc. (PSE: GLO). In practice, however, we gather other comparable companies across Southeast Asia but for the purpose of this document, I only used one comparable company.

The valuation methods used in the document are:
1. Relative valuation - in this document compared only to GLO.
2. Precedent transaction analysis - recent acquisition of telecommunication companies are analyzed.
3. Discounted cash flows method - used forecasted cash flows of TEL with multiple scenarios.

The purpose of using multiple valuation method is to cross check each other.

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1 excel file

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