EN DE

TIM S.A (TIMS3) Fair Value & Analysis

Communication Services · BR · Market cap R$54.0B

TS TIM S.A TIMS3 · SA
PriceR$18.90
Fair ValueR$31.52
Upside+66.8%
Quality60/100
Watch TIM S.A for free, get notified when fair value or trend changes. Watch for free
Healthy Growth
Solidly profitable · 16.0% net margin
Low debt · generates free cash flow
6.50% dividend yield
Ranks above peers (13/15)
Wide moat 68/100
Evidence: High Range R$23.02 – R$42.39 Share as image

Fair value as of: Jul 19, 2026

From 26 valuation models · updated 19 days ago

Fair value updated Jul 19, 2026, revised from R$35.13 to R$31.52 (−10.3%) since Jun 24, 2026. Share price −16.0% over the past month.

A solid business, screening 67% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (R$23.02). The market is more pessimistic than our downside scenario.
  • Solid quality (60/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (R$23.02 to R$42.39) leaves room in how you read the outcome.
Share this valuation: 𝕏 WhatsApp

Price vs Fair Value (5 years)

R$27.96 R$7.48 Fair Value R$31.52 Apr 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range R$7.48 – R$27.96 · fair‑value band R$23.02 – R$42.39 · the R$18.90 price screens below the R$31.52 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

TIM S.A (TIMS3) currently trades at R$18.90, while our model-based Fair Value estimate is R$31.52, implying the stock looks roughly 66.8% undervalued today. We read business quality at 60/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, TIM S.A generated revenue of R$27.0B at a net margin of 16.0%. Revenue grew 6.5% year over year. It earns a return on equity of 17.7%. Net debt stands at R$28.5B. Fundamentals as of Jul 19, 2026

Our scenario range runs from R$23.02 (bear case) to R$42.39 (bull case); at R$18.90, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 34% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at 67%, TIMS3 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF R$43.87 R$72.63 R$118.94 80
Residual Income R$11.50 R$13.98 R$30.51 76
Rev-Margin DCF R$26.69 R$41.25 R$59.11 74
All 26 models by family
DCF Models
FCF DCF R$43.61 R$73.38 R$121.72 38
Owner Earnings R$33.81 R$56.99 R$94.64 31
5Y Revenue Exit R$26.69 R$40.99 R$59.18 39
5Y EBITDA Exit R$47.43 R$81.62 R$122.87 41
5Y P/E Exit R$30.41 R$48.27 R$67.50 38
10Y Revenue Exit R$31.59 R$46.56 R$67.01 36
10Y EBITDA Exit R$45.69 R$75.49 R$117.78 37
10Y P/E Exit R$34.63 R$51.75 R$73.64 35
Earnings-Based
Graham-Dodd R$12.28 R$46.99 R$63.65 54
Lynch FV R$11.45 R$16.35 R$21.26 50
PEG = 1.0 R$11.45 R$16.35 R$21.26 46
EPV R$22.54 R$26.42 R$29.82 59
Dividend Discount
Gordon GGM R$20.60 R$42.84 R$67.96 70
DDM Multi-Stage R$20.60 R$36.12 R$44.96 61
Multiples
P/E Multiple R$27.08 R$36.10 R$45.13 63
P/S Multiple R$20.90 R$27.87 R$34.83 58
P/B Multiple R$22.59 R$30.11 R$37.64 55
EV/EBIT R$35.93 R$48.15 R$60.38 53
EV/EBITDA R$54.63 R$73.09 R$91.55 54
EV/Revenue R$18.77 R$27.13 R$35.49 43
Asset-Based
NCAV (Graham) R$5.02 R$6.73 R$10.04 50
Growth DCF
Growth DCF R$43.87 R$72.63 R$118.94 80
Rev-Margin DCF R$26.69 R$41.25 R$59.11 74
Economic Profit
Residual Income R$11.50 R$13.98 R$30.51 76
ROIC Compounder R$24.99 R$32.80 R$42.46 72
Growth Earnings
Growth-Adj P/E R$20.18 R$28.83 R$37.48 68

Widest divergence: DCF Models (R$51.75) versus Asset-Based (R$6.73). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) R$27.0B
Revenue growth (YoY) +6.5%
Net margin 16.0%
Return on equity 17.7%
Free cash flow R$8.8B FY2025
P/E ratio 12.6
More key figures
Operating margin 24.3%
EPS (TTM) R$1.79
Dividend yield 6.5%
EPS growth (YoY) +3.2%
Net debt R$28.5B FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 60/100

Of which business quality 64 · Market factors (momentum, volatility) 42

Profitability 52
Margins and returns on capital today
Quality Growth 47
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 45
Balance sheet, leverage, solvency risk
Investment 72
Disciplined investing over empire-building
Low Volatility 85
Calm price path (market factor)
Momentum 26
Price trend over the last 3–12 months (market factor)
52W Momentum 20
Distance to the 52-week high (market factor)
Net Issuance 83
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

TIM S.A. engages in the telecommunications sector in Brazil. It offers landline switched telephone services in local, national, and international long-distance modes, as well as personal mobile and multimedia communication services. The company is based in Rio de Janeiro, Brazil. TIM S.A. is a subsidiary of TIM Brasil Serviços e Participações S.A.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

TIM S.A reported revenue of R$26.6B in FY2025 versus R$18.1B in FY2021, a compound +10.2%/yr. Reported net income was R$4.3B in FY2025, compounding +9.9%/yr from FY2021.

Growth Quality 88/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
R$26.6B
Latest YoY
+4.6%
Avg. growth/yr (3Y)
+7.3%
Avg. growth/yr (5Y)
+9.0%
Avg. growth/yr (27Y)
+15.8%
Revenue +10.2%/yr
FY21 R$18.1B
FY22 R$21.5B
FY23 R$23.8B
FY24 R$25.4B
FY25 R$26.6B
Net income +9.9%/yr
FY21 R$3.0B
FY22 R$1.7B
FY23 R$2.8B
FY24 R$3.2B
FY25 R$4.3B

Watch TIMS3: get an alert when its fair value changes →

Share or link this analysis
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "TIM S.A Fair Value". https://www.fairvalue-calculator.com/stock/TIMS3

Peer Group

Telecom Services · 252 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 60 · Top 25%
Fair Value upside +67% · Top 25%
Return on equity (TTM) 18% · Top 25%
Return on assets 8% · Top 25%
Net margin (TTM) 16% · Top 25%
Operating margin (TTM) 24% · Top 25%
Revenue growth 7% · Above median
Dividend yield (TTM) 6.5% · Top 25%
Debt / equity 0.08× · Lower than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 12.6× · Cheaper than median
P/B 2.25× · Pricier than median
P/S (TTM) 2.00× · Pricier than median
P/FCF 1.2× · Cheaper than median
EV/EBITDA 4.9× · Cheaper than median
PEG 1.37× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 29
FUTURE 33 · sector 15
PAST 71 · sector 28
HEALTH 96 · sector 89
DIVIDEND 100 · sector 73

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

Compare TIM S.A with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Communication Services stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Frequently asked questions

Is TIM S.A (TIMS3) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of R$31.52 versus a price of R$18.90, about +67% (undervalued).
What is the fair value of TIMS3?
Our model-based fair value for TIM S.A is R$31.52 (as of Jul 19, 2026), built from audited fundamentals. The current price is R$18.90.
What is the quality score of TIMS3?
TIM S.A has a Quality Score of 60/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of TIM S.A (TIMS3)?
TIM S.A reported trailing-twelve-month revenue of about R$27.0B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of TIMS3?
The net profit margin of TIM S.A is about 16.0%, meaning it keeps roughly 16.0% of revenue as net income. Based on the latest reported figures.
Does TIM S.A pay a dividend?
TIM S.A currently shows a dividend yield of about 6.53% relative to its recent price (as of Jul 19, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

14 days Pro free · no card

Track TIM S.A and try Pro for 14 days

One email gets you 14 days of full Pro (review alerts, the 35,000+ stock screener, the diversification check) plus the monthly Top-25 report of the most undervalued quality stocks. No card, cancel anytime.

Zero risk: nothing is ever charged. After 14 days you decide whether to stay.