Piramal Healthcare on Friday added
5.5% stake to Vodafone India to take its total shareholding in the telecom
major to 11%. Now, Piramal’s total investment in Vodafone i.e. telecom business
stands at Rs5870 crore. Considering this to be almost equivalent to a third of
the sale proceeds to Abbot, I wanted to estimate how much is Vodafone actually
worth (Neglecting the effect Supreme court ruling cancelling 2G licenses issued
in 2008 could have on its value).
Data used for the relative
valuation is taken from Vodafone Plc’s half yearly numbers, wherein Sales and
EBITDA of India operations was given. As for comparison, MarketCapitalization/Sales
and EV/EBITDA are considered. The comparable companies which have been taken
for this are Airtel, Idea, RComm and Tata Teleservices (TTML). The values for
the multiples as on 25th Jan 2012 were:
|
EV/EBITDA
|
Mkt Cap/Sales
|
|
|
Airtel
|
11.13
|
3.57
|
|
Idea
|
10.79
|
1.45
|
|
Rcomm
|
31.54
|
1.67
|
|
Tata Tele
|
6.78
|
1.44
|
|
Average
|
9.57*
|
2.03
|
