“The beta must be calculated using the benchmark of comparable companies. Data correspond to adjusted betas of comparable companies, provided by Bloomberg - historical series for the five years preceding the decision year, with monthly observations. Moreover, data from Bloomberg must be unleveraged from the financial structure and later leveraged, using the Harris and Pringle model (equity β = asset β * (1+ D/E)), using the gearing defined for MEO for the decision year.”
Maintaining the methodology described above, defined in the 2013 determination, in the light of the benchmark update proposed in point 3.4 and taking into consideration the calculation carried out by Mazars, applicable to the 2016 financial year, a beta by 0.767 was obtained (vide table 5), the detailed calculation of which may be consulted at Mazars' report in annex to this DD.
|
Comparable companies |
5-year equity beta (Harris and Pringle formula) |
|
BT Group |
1,064 |
|
Deutsche Telekom |
0,799 |
|
Elisa OYJ |
0,548 |
|
Hellenic Telecommunications |
1,096 |
|
KPN NV |
0,396 |
|
Magyar Telekom |
0,629 |
|
NOS SGPS |
0,703 |
|
Orange |
0,834 |
|
Proximus (*) |
0,894 |
|
Swisscom |
0,682 |
|
TDC |
0,612 |
|
Telecom Italia |
0,854 |
|
Telefónica |
0,889 |
|
Telekom Austria |
0,583 |
|
Telenor ASA |
0,974 |
|
TeliaSonera AB |
0,707 |
|
Average |
0,767 |
Source: Mazars Report
(*) former Belgacom
