Fundamental Stock Analysis of TalkTalk Telecom Group PLC

Abstract

The aim of fundamental stock analysis is to find an intrinsic value of the share and evaluate it with a current market price. Thesis is based on the selected models and methods of fundamental analysis of TalkTalk Telecom Group PLC. First part of work is focused on the characteristics of fundamental analysis and its individual parts. Global and industry analysis are applied in the follow chapter. Economics influences may affect the share price examined and assessed there. Then the main facts about the company and its environmental are mentioned. Financial analysis, SWOT analysis and the estimation of an intrinsic value of share are the subjects of the fourth chapter. Two-stage dividend discount model was chosen, than multiple models (P/E Ratio, P/BV Ratio, P/S Ratio), balance model (Book value), and historical models (P/S, P/D, P/BV). Final intrinsic value is compared with an actual market price. The investment recommendation is based on the calculation, economics situation and development of company in the future and it sounds buy, sell or keep it.