Company valuation in emerging market : the case of Bulgarian telecommuncations company

2006

Telecommunication companies often catch

investors’ attention as a promising growth

investment. How should the value of such a

company be estimated, given the deficiencies

of emerging market economy? This is the

question that provoked my interest for the

Bulgarian incumbent telecom. This paper

exhibits my attempt to work through its

financial data and to get familiar with

the industry developments in Europe and Bulgaria.

Three different valuation models are used in order to

address the uncertainties of emerging market environment.

The detailed fundamental analysis of the

company, based on publicly available

information as of April 2006, allows me to

arrive at an investment recommendation that

could be useful for strategic or financial

investors interested in ading a Bulgarian

company to their portfolios.