In the distinct fields of valuation, and in particular in Equity Research, theory and practice
should be accurately combined as way to obtain the most consistent outcome which adheres
to reality. The present dissertation aims at answering this need through bridging the review of
relevant literature with the valuation of the leading telecommunications operator Portugal
Telecom in practical terms. The year-end 2012 price target derived from the company’s stock
is 5,01Euro per share, implying a Buy recommendation. Caixa Banco de Investimento’s
research is additionally analyzed and used as basis for comparison for both the methodologies
followed and results yielded
