WallStSmart

Spotify Technology SA (SPOT)vsTIM Participacoes SA (TIMB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

TIM Participacoes SA generates 54% more annual revenue ($27.04B vs $17.53B). TIMB leads profitability with a 16.0% profit margin vs 15.4%. SPOT appears more attractively valued with a PEG of 1.83. SPOT earns a higher WallStSmart Score of 64/100 (C+).

SPOT

Buy

64

out of 100

Grade: C+

Growth: 8.0Profit: 8.5Value: 4.0Quality: 7.5
Piotroski: 4/9Altman Z: 2.66

TIMB

Buy

61

out of 100

Grade: C+

Growth: 5.3Profit: 7.5Value: 7.3Quality: 4.8
Piotroski: 5/9Altman Z: 1.70
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

SPOTSignificantly Overvalued (-44.3%)

Margin of Safety

-44.3%

Fair Value

$337.63

Current Price

$417.83

$80.20 premium

UndervaluedFair: $337.63Overvalued
TIMBUndervalued (+49.9%)

Margin of Safety

+49.9%

Fair Value

$54.10

Current Price

$23.60

$30.50 discount

UndervaluedFair: $54.10Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

SPOT4 strengths · Avg: 9.5/10
Return on EquityProfitability
38.0%10/10

Every $100 of equity generates 38 in profit

EPS GrowthGrowth
222.4%10/10

Earnings expanding 222.4% YoY

Market CapQuality
$87.44B9/10

Large-cap with strong market position

Debt/EquityHealth
0.289/10

Conservative balance sheet, low leverage

TIMB3 strengths · Avg: 8.0/10
P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Operating MarginProfitability
24.3%8/10

Strong operational efficiency at 24.3%

Free Cash FlowQuality
$2.92B8/10

Generating 2.9B in free cash flow

Areas to Watch

SPOT3 concerns · Avg: 4.0/10
PEG RatioValuation
1.834/10

Expensive relative to growth rate

P/E RatioValuation
28.2x4/10

Moderate valuation

Price/BookValuation
8.8x4/10

Trading at 8.8x book value

TIMB4 concerns · Avg: 4.0/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Price/BookValuation
12.2x4/10

Trading at 12.2x book value

EPS GrowthGrowth
3.2%4/10

3.2% earnings growth

Altman Z-ScoreHealth
1.704/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : SPOT

The strongest argument for SPOT centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 15.4% and operating margin at 15.8%.

Bull Case : TIMB

The strongest argument for TIMB centers on P/E Ratio, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.0% and operating margin at 24.3%.

Bear Case : SPOT

The primary concerns for SPOT are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : TIMB

The primary concerns for TIMB are PEG Ratio, Price/Book, EPS Growth.

Key Dynamics to Monitor

SPOT carries more volatility with a beta of 1.55 — expect wider price swings.

SPOT is growing revenue faster at 8.2% — sustainability is the question.

TIMB generates stronger free cash flow (2.9B), providing more financial flexibility.

Monitor INTERNET CONTENT & INFORMATION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

SPOT scores higher overall (64/100 vs 61/100), backed by strong 15.4% margins. TIMB offers better value entry with a 49.9% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Spotify Technology SA

COMMUNICATION SERVICES · INTERNET CONTENT & INFORMATION · USA

Spotify Technology SA, provides audio streaming services worldwide. The company is headquartered in Luxembourg, Luxembourg.

TIM Participacoes SA

COMMUNICATION SERVICES · TELECOM SERVICES · USA

TIM SA is a telecommunications company in Brazil. The company is headquartered in Rio de Janeiro, Brazil.

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