Where to now for long term investors of Telstra, page-9082

The TPM/VHA merger document includes an independent valuation, which uses both DCF and EBITDA multiples to estimated values for the companies;

The key points the independent values used for the multiple is that they differentiated based on different segments, with mobile having the lowest multiple, enterprise the highest, and consumer in between.

I just had a quick go at applying those multiple to Telstra, its not a perfect fit, eg NAS is aimed at Enterprise but i used lower, mobile, numbers because i think the division is the most troublesome (i could be wrong), some other sectors should really be split (eg Fixed is 10% enterprise, 90% consumer and small business).

Anyway, i just had a go to see what i could come up with, not claiming it to be accurate...

Capitalisation of EBITDA method	Revenue	EBITDA Margin	Underlying EBITDA	EBITDA Multiple		EV $m
Division				Low	High	Low	High
Fixed	5223	19.00%	992.4	7	8	6,947	7,939
Data & IP	2358	63.00%	1485.5	8.5	9	12,627	13,370
Mobile	10545	34.00%	3585.3	6	6.5	21,512	23,304
NAS	3477	10.00%	347.7	6	6.5	2,086	2,260
Global Connectivity	1700	19.00%	323.0	8.5	9	2,746	2,907
Total	23303		6733.91			45,917	49,780
Net Debt						14,727	14,727
Market Cap						31,190	35,053
Ordinary Shares						11,893	11,893
SP (est)						2.62	2.95