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Brazilian (BOVESPA) Telecom Sector Analysis

UpdatedFeb 27, 2024
DataAggregated Company Financials
Companies13
  • 7D3.4%
  • 3M4.8%
  • 1Y42.1%
  • YTD3.5%

Over the last 7 days, the Telecom industry has risen 3.4%, driven by gains from Telefônica Brasil of 3.3%. Meanwhile, Unifique Telecomunicações actually underperformed within the industry, shrinking 8.7% in the last week. This means that the industry has gained 42% over the past year. Looking forward, earnings are forecast to grow by 15% annually.

Sector Valuation and Performance

Has the Brazilian Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 28 Feb 2024R$145.5bR$82.6bR$8.2b15.7x17.7x1.8x
Fri, 26 Jan 2024R$136.7bR$81.3bR$7.2b17.1x19.1x1.7x
Sun, 24 Dec 2023R$142.8bR$81.3bR$7.2b17.9x19.9x1.8x
Tue, 21 Nov 2023R$134.3bR$81.3bR$7.2b17.5x18.6x1.7x
Thu, 19 Oct 2023R$123.3bR$79.8bR$6.9b19.5x17.8x1.5x
Sat, 16 Sep 2023R$119.3bR$79.8bR$6.9b20x17.2x1.5x
Mon, 14 Aug 2023R$117.3bR$79.6bR$6.8b18.8x17.3x1.5x
Wed, 12 Jul 2023R$114.3bR$78.2bR$6.1b16.4x18.8x1.5x
Fri, 09 Jun 2023R$115.5bR$78.2bR$6.1b16.9x19x1.5x
Sun, 07 May 2023R$111.5bR$75.7bR$5.9b18.4x19x1.5x
Tue, 04 Apr 2023R$102.2bR$75.6bR$5.9b15.1x17.4x1.4x
Thu, 02 Mar 2023R$102.4bR$75.2bR$5.7b15.1x17.9x1.4x
Sat, 28 Jan 2023R$103.9bR$72.9bR$7.8b12.8x13.3x1.4x
Mon, 26 Dec 2022R$102.7bR$72.9bR$7.8b13.9x13.2x1.4x
Wed, 23 Nov 2022R$104.4bR$72.9bR$7.7b14.3x13.5x1.4x
Fri, 21 Oct 2022R$107.9bR$69.9bR$8.1b12.5x13.3x1.5x
Sun, 18 Sep 2022R$107.0bR$69.9bR$8.1b14.8x13.2x1.5x
Tue, 16 Aug 2022R$117.4bR$69.0bR$8.1b15.8x14.5x1.7x
Thu, 14 Jul 2022R$120.3bR$67.0bR$9.1b13.1x13.2x1.8x
Sat, 11 Jun 2022R$120.1bR$67.0bR$9.1b13.4x13.2x1.8x
Mon, 09 May 2022R$129.9bR$66.1bR$9.2b16.3x14.1x2x
Wed, 06 Apr 2022R$145.2bR$65.9bR$9.1b22.9x15.9x2.2x
Fri, 04 Mar 2022R$131.5bR$65.2bR$9.1b23.9x14.5x2x
Sun, 30 Jan 2022R$132.6bR$64.8bR$7.7b27.2x17.1x2x
Tue, 28 Dec 2021R$134.2bR$64.8bR$7.7b26x17.3x2.1x
Thu, 25 Nov 2021R$139.8bR$64.8bR$7.7b27.3x18.1x2.2x
Sat, 23 Oct 2021R$132.4bR$73.0bR$2.9b35.5x46.1x1.8x
Mon, 20 Sep 2021R$134.7bR$73.0bR$2.9b40.9x46.9x1.8x
Wed, 18 Aug 2021R$137.4bR$73.0bR$2.9b45.8x47.8x1.9x
Wed, 02 Jun 2021R$134.5bR$71.1b-R$2,137,569,000.0048.7x-62.9x1.9x
Sat, 06 Mar 2021R$133.1bR$70.9b-R$4,644,690,000.0038.7x-28.7x1.9x
Price to Earnings Ratio

-28.7x


Total Market Cap: R$133.1bTotal Earnings: -R$4,644,690,000.00Total Revenue: R$70.9bTotal Market Cap vs Earnings and Revenue0%0%0%
Brazilian Telecom Sector Price to Earnings3Y Average 13.6x202220232024
Current Industry PE
  • Investors are optimistic on the Brazilian Communication Services industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 17.7x which is higher than its 3-year average PE of 12.4x.
  • The industry is trading close to its 3-year average PS ratio of 1.7x.
Past Earnings Growth
  • Total earnings for the Communication Services industry have gone up over the last three years, and the industry is now profitable. Revenues have grown 5.2% per year.
  • This means that more sales are being generated by the industry overall, and subsequently profits are increasing too.

Industry Trends

Which industries have driven the changes within the Brazilian Telecom sector?

BR Market-0.35%
Telecom3.37%
Interactive Media and Services8.52%
Wireless Telecom4.37%
Telecom Services and Carriers3.11%
Entertainment1.45%
Media-4.07%
Industry PE
  • Investors are most optimistic about the Media industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 55.4% and investors are willing to pay a premium for that growth.
Forecasted Growth
  • Analysts are most optimistic on the Interactive Media and Services industry, expecting annual earnings growth of 87% over the next 5 years.
  • In contrast, the Telecom Services and Carriers industry is expected to see its earnings grow by 13% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
VIVT3 Telefônica BrasilR$56.465.3%
+R$4.7b
45.4%PE18.6x
TIMS3 TIMR$18.755.1%
+R$2.2b
53.2%PE16x
DESK3 DesktopR$14.405.5%
+R$86.5m
80.0%PE18.6x
BRIT3 Brisanet ParticipaçõesR$3.483.9%
+R$57.9m
66.5%PE11.8x
BMOB3 Bemobi Mobile TechR$13.624.6%
+R$51.8m
-1.5%PE17.2x
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