5 models fit TIM S.A. American Depositary Shares (Each representing 5 Common Shares) and they disagree: 1 of 5 land within 15% of the average.
Two or more of our models back this value.
Large discount(i)Bronze40
Valued as a mature, profitable company: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
ACCE opinionTIM S.A. American Depositary Shares (Each representing 5 Common Shares) (TIMB)
Fair value (5 models)
$28.05
ACCE price target
$21.00
Rating
Undervalued
Horizon
12 months
Fair value published on 20 Oct 2026, 14:06 CEST; previously $25.84 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 20 Oct 2026, 14:06 CEST.
Price used: $19.17 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
31.6% below
+46.3% to fair value
ACCE score
59
out of 100
Analysts
25% buy
8 covering
P/E
11.4x
forward 8.0x
1-year return
-14.3%
Dividend yield
8.09%
TIM S.A. American Depositary Shares (Each representing 5 Common Shares) in four questions
Plain answers, details below
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Overview
ACCE thesis
TIM S.A. is Brazil's second-largest mobile operator, selling prepaid and postpaid mobile voice and data, fixed broadband and fibre, and enterprise connectivity under the TIM brand, with its ADSs representing five common shares each. Its structural edge is scale in a three-player Brazilian mobile market, with a 54.6% gross margin and 24.7% operating margin showing the network base converts well to cash. The near-term story is the 5G rollout and fibre build-out, which lets the company push higher-value postpaid and home broadband customers onto its network. At 10.8x trailing and 8.0x forward earnings, with 17.3% ROE and 5.5% revenue growth, the valuation is undemanding for a business earning those margins. The stock scores 59/100 and has no index membership, so the case rests on whether Brazilian mobile pricing and competition hold up well enough to sustain those margins.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Score slipping over 90 days
ACCE score fell from 66 to 59 over 90 days, with Growth at 40 and Momentum at 25. Revenue grew 5.5% YoY but earnings only 2.5%, and QoQ revenue was -1.6%.
moderate
Leverage above one times equity
Debt/Equity is 1.19, so debt exceeds equity. With $8.9B FCF the balance sheet looks serviceable, but there is less cushion if earnings weaken.
AI research notes
AI-assisted·How I use AIWritten Oct 18, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
TIM generated BRL 8.9B of free cash flow over the last twelve months, a cash pile that supports its dividend.
Revenue grew 5.5% year over year, and the company has averaged 9.0% annual growth over five years.
At 8.0x forward earnings against a sector median of 16.8x, the shares look inexpensive, and the model fair value sits 31.6% above the price at $28.05.
Why it could disappoint
Return on invested capital is only 6.7%, and the company carries debt of 1.19 times equity, which limits the margin for error.
Analysts are cautious, with only 2 of 8 rating the stock Buy or Strong Buy, and the analyst mean target sits 8.7% below the price.
The stock trades 8.7% below the ACCE price target of $21.00, and the 8.4% dividend yield may be partly one-off, so income investors should not assume it is secure.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 9, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
Walk me through this stock
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Valuation
INVESTOR
Where TIMB's valuation models land
Price
$19.17
Model fair value
$28.05
Model range
$13.65 to $38.77
Fair value $28.05
Price $19.17
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
+A plain reason under every score
+Conviction breakdown and growth / value / quality / momentum scores
Follow the informed money: 13F position changes, insider and Congress trades, and 13D activist filings.
+Quarter-over-quarter institutional position changes
+Every insider and Congress trade, with how late it was disclosed
+Active 13D activist filings and top holders
Compare
Where it sits vs peers
News and Record
Recent performance
1 week
+2.7%
1 month
+4.5%
3 months
-10.0%
6 months
-26.6%
YTD
-1.4%
1 year
-14.3%
SEC filings
Recommendation history, last 12 months
Date
Type
New
Previous
Price
20 Oct 2026, 14:06 CEST
Rating
Undervalued
first publication
$18.67
20 Oct 2026, 14:06 CEST
Fair value
$28.05
$25.84
$18.67
15 Oct 2026, 00:00 CEST
Fair value
$25.84
$20.06
$18.18
10 Oct 2026, 00:00 CEST
ACCE price target
$21.00
first publication
$18.70
29 Sept 2026, 00:00 CEST
Fair value
$20.06
$20.73
$18.16
21 Sept 2026, 00:00 CEST
Fair value
$20.73
$21.03
$18.90
16 Sept 2026, 00:00 CEST
Fair value
$21.03
$22.70
$19.12
13 Sept 2026, 00:00 CEST
Fair value
$22.70
$21.09
$18.89
5 Sept 2026, 00:00 CEST
Fair value
$21.09
$22.91
$18.70
3 Sept 2026, 00:00 CEST
Fair value
$22.91
$23.39
$18.14
Price
-15.3% · 1Y
Ask anything about TIMB
Answered from TIM S.A. American Depositary Shares (Each representing 5 Common Shares) fundamentals + recent valuations. Every number shows its source and date.
This stock Peer Peer median weaker → stronger
P/Ebetter than 50% of peers
low 3.3x11.4xhigh 42.8x
ROEbetter than 20% of peers
low 11%17%high 45%
Div yieldbetter than 100% of peers
low 0.0%8.1%high 8.1%
Peers
Prices Oct 23, 2026
Company
Price
Fair value
vs fair value
P/E
ROE
Quality
Score
TIMBTIM S.A. American Depositary Shares (Each representing 5 Common Shares)