Wednesday, August 24, 2011

Meeting #38 - MTU

M2 Telecommunications Group Limited is engaged in the supplying of fixed line voice, mobile telecommunications and broadband data services within the Australian and New Zealand markets through its retail and wholesale operating divisions. Retail business segment offers unique packaged telecommunications services, targeted particularly to small and medium sized enterprises, offering fixed line voice services, including line rental services, mobile voice and data services, information technology (IT), terrestrial dial-up and broadband Internet services, as well as mobile telephone hardware. Wholesale business segment offers a full suite of fixed-line voice services, including line rental services, mobile voice and data services, terrestrial dial-up and high speed broadband Internet services, and mobile telephone hardware. On August 3, 2010, People Telecommunications Pty Ltd, wholly owned subsidiary, acquired Bell Networks Voice ; Data Pty Ltd (Bell Networks).

Results Of Our Analysis

Find Our Valuations here

Notes about the Meeting

  1. We should look into Excel functions that automatically calculate an initial price from an final price & interest rate, instead of implementing an iterative solution (ALL);
  2. We should look into implementing checks to ensure our calculated growths are feasible. Possible things to include on checks are the current size of the sector (or whole economy), factored over 10 years for typical population growth & inflation. This needs to be dicsussed further if we are to come up with a workable check we all agree on (ALL);
  3. We should also look at whether or not a company has previously grown by acquisition. If this is the case, there may be a limit on future growth. We should flag this in future calculations, and should certainly be implemented in Point 2, above. (ALL)
  4. Roys should evaluate gearing as Gearing=Debt/Assets, which is preferable to my current system of years to pay off debt (ROY)
  5. Roy should include Interest Coverage Ratio (ROY)
  6. Roy shouldn't calcualate growth as an average value, but use at Growth Rate =(final  - initial)/No. years  (ROY)
  7. Roy should divide EBITDA by the net assets to evaluate the amount of assets in the business that are being used to generate profits (ROY)
  8. Next Meeting: Present analysus of IRI  & Discuss the assessment of many companies. (ALL)