France Telecom Is A Fantastic Dividend Opportunity
Published Oct 10, 2012 on Seeking Alpha

France Telecom (FTE) is the dominant force in the French telecom market. It's the owner of Orange and gets 15.7% of its sales from this source. Its closest competitors include Iliad (ILIAF.PK) and Vivendi SA (VIVHY.PK). Reasons to buy: France Telecom is very undervalued right now. It has a P/E ratio of just 6.8 compared to an industry average of 31.8. It also has a Price/Sales of 0.6 compared to an industry average of 1.4. A discounted cash flow reveals that there is a potential 81% upside with a price per share of $22.00 (here). Also, a comparative multiple analysis reveals a 175% multiple potential with a potential share price of $34.00 (here). Therefore, it is clear that FTE is seriously undervalued at its current share price.
The company is also expanding rapidly. Last year it spent EUR 6.711 billion on CapEX a EUR 600 million increase on the previous.... Read more