TIM TIMB
BrazilCommunication Services · Telecom ServicesUSD
24.24 USD (+27.5%)
8 analysts
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TIM S.A. is one of Brazil's leading telecommunications operators, providing mobile, fixed-line, broadband and pay-TV services to residential and corporate customers.
Key points
from its scores- ✓Attractive valuation8.3
- ✓Very solid balance sheet8.2
- ✓Attractive dividend7.4
- ✕Poor share-price trend3.6
- !Risks to watch5.2
AI analysis
bottom line, main risk, context and newsThe combination of an attractive valuation and a high dividend offers a cushion, but the governance risk in Brazil and the weak momentum (-6.81%) advise caution before taking a position.
TIM S.A. presents solid fundamentals: a healthy balance sheet (Net Debt/EBITDA of 1.05), high shareholder returns (net yield of 8.25%) and an attractive valuation (P/E 11.19, FCF yield 9.75%). The main drag is the governance risk in Brazil, which justifies an additional discount and limits the upside potential.
The main risk is governance and the regulatory environment in Brazil, which can translate into political interference, changes in sector rules or pressure on prices, affecting the company's ability to distribute its high dividend.
Context and risks
TIM S.A. is domiciled in Brazil, a market with weak institutional governance and limited protection for minority shareholders. Although the company shows a healthy balance sheet (Net Debt/EBITDA of 1.05), the risk of political interference, regulatory changes in the telecommunications sector and currency volatility (BRL) against the USD are factors that can erode shareholder value. This governance and jurisdictional risk is material and is not reflected in the financial metrics.
Is TIM stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 41% below the Communication Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 11.2 | 17.1 | −35% |
| EV / EBITDA | 5.0 | 9.6 | −47% |
| Price / book | 1.9 | 2.3 | −18% |
| Price / sales | 1.7 | 1.9 | −14% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.3 out of 10 (median for Communication Services: 6.3).
Average analyst target: 24.24 USD, +27.5% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 8.2 (sector 6.6), Growth 5.4 (sector 5.4).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- P/E
- 11.2
- Forward P/E
- 9.3
- EV / EBITDA
- 5.0
- Price / book
- 1.9
- Price / sales
- 1.7
- PEG
- 1.44
- Market cap
- 9.0B USD
- Enterprise value
- 57.3B BRL
Profitability
- ROE
- 17.3%
- ROA
- 7.7%
- ROIC (approx.)
- 16.7%
- Gross margin
- 54.6%
- Operating margin
- 24.7%
- Net margin
- 15.8%
- Free cash flow
- 4.4B BRL
- FCF yield
- 9.7%
- Cash conversion
- 39%
Solvency
- Total debt
- 16.5B BRL
- Net debt
- 12.0B BRL
- Cash
- 4.5B BRL
- EBITDA
- 11.4B BRL
- Net debt / EBITDA
- 1.05
- Debt / equity
- 65.95
- Current ratio
- 0.85
- Quick ratio
- 0.73
Growth
- Revenue growth
- +5.5%
- Earnings growth
- +2.5%
- EPS (TTM)
- 1.70 USD
- EPS (forward)
- 2.05 USD
Dividend
- Dividend yield
- 8.3%
- Payout
- 88.2%
Risk and market
- Beta
- 0.09
- Analyst consensus
- Hold (8)
- Target price
- 24.24 USD
- 52-week range
- 17.14 – 28.22
Recent news
All TIMB news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about TIM
Is TIM stock cheap or expensive?
On P/E and EV / EBITDA, it trades 41% below the Communication Services median on average. Valuation score: 8.3 out of 10 (median for Communication Services: 6.3). Average analyst target: 24.24 USD, +27.5% versus the price. This is not investment advice.
What score does TIM get on MeridIAn Screener?
It scores 6.9 out of 10, rank 294 of 2,130 (better than 86% of the companies analysed). Its strongest category is Valuation (8.3) and its weakest, Momentum (3.6). Analysis of 08/10/2026.
What is TIM's P/E ratio?
Its P/E is 11.2: the share price equals 11.2 times earnings per share over the last 12 months. The Communication Services median is 17.1. Based on the earnings analysts expect, the forward P/E is 9.3.
How much is TIM worth on the stock market?
Its market capitalisation is 9.0B USD and its enterprise value, debt included, is 57.3B USD.
How much debt does TIM have?
Its net debt (debt minus cash) is 12.0B BRL. That is 1.05 times its EBITDA; the Communication Services median is 2.19.
Does TIM pay a dividend?
Yes: its dividend yield is 8.25% and it pays out 88% of its earnings.
How has TIM stock performed over the last year?
It has fallen 6.2% over the last year, excluding dividends. Over the last 52 weeks it has traded between 17.14 and 28.22 USD. Past performance does not guarantee future results.
What do analysts think of TIM?
8 analysts cover it; their average recommendation is “Hold” and their average target is 24.24 USD (+27.5% versus the price). It is an estimate, not market data.