TIM S.A., a telecommunications company, provides mobile voice and data services, broadband internet access, value-added services, and other telecommunications services and products in Brazil. The company offers services for individuals, as well as corporate solutions for small, medium, and large companies. It also offers fixed-line ultra-broadband and TIM Live services, as well as WTTx technology through Ultrafibra services and IoT solutions. In addition, the company provides digital content and services in its portfolio of packages; sells various mobile handsets and accessories through its dealer network, which includes its own stores, exclusive franchises, and authorized dealers; and offers co-billing services to other telecommunication service providers. As of December 31, 2021, it served a subscriber base of 52.6 million customers. The company is headquartered in Rio de Janeiro, Brazil. TIM S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	21,530.8	23,833.9	25,447.9	26,524.8	27,825.4	28,899.5	28,899.5	28,899.5
Revenue % Chg.	19.2%	10.7%	6.8%
EBIT	3,440.4	4,797.6	5,833.7	6,403.6	7,175.1	7,934.8	7,934.8	7,934.8
EBIT Margin	16%	20.1%	22.9%
Tax Rate	2.9%	10.9%	12.9%
NOPAT	3,340.2	4,275.4	5,079.1	5,613.9	6,036	6,384.8	6,384.8	6,384.8
NOPAT Margin	15.5%	17.9%	20%	21.2%	21.7%	22.1%	22.1%	22.1%
D&A	5,684.4	6,138.7	6,089.3	6,975.5	6,951.5	6,922.8	6,922.7	6,922.7
D&A / Revenue	26.4%	25.8%	23.9%
Capex	-4,730.4	-4,504.3	-4,550.4	-4,500.3	-4,651.3	-4,761.5	-4,761.5	-4,761.5
Capex / Revenue	-22%	-18.9%	-17.9%
Chg. NWC	-2,103.9	-384.6	-1,476.2	-1,519.5	-1,594.1	-1,655.6	-1,655.6	-1,655.6
Chg. NWC / Revenue	-9.8%	-1.6%	-5.8%
Unlevered FCF (UFCF)	2,190.2	5,525.2	5,141.7	6,569.5	6,742.2	6,890.5	6,890.5	6,890.5
UFCF % Chg.	-14.6%	152.3%	-6.9%	27.8%	2.6%	2.2%	—	—
PV of UFCF	—	—	—	5,795.8	5,247.6	4,731.4	4,174.1	3,682.5
Sum of PV of UFCF	—	—	—	5,795.8	11,043.3	15,774.7	19,948.9	23,631.4

Cost of Debt
Tax Rate
After Tax Cost of Debt	13.5%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	13.3%
Total Debt	15,611.3
Market Cap	56,371.3
Total Capital	71,982.7
Debt Weighting	21.7%
Equity Weighting	78.3%
WACC	13.3%

Exit Multiple EV/FCF
Terminal Value	66,202.9
PV of Terminal Value	31,214
Cumulative PV of UFCF	23,631.4
Net Debt	9,831.5
Equity Value	45,013.8
Shares Outstanding	2,404.9
Implied Share Price	18.7
Current Share Price	23.8
Implied Upside / (Downside)	-21.2%