Over the next five years (FY 2025–2029), Deutsche Telekom will leverage its transatlantic scale, AI-driven automation and continued 5G/fibre roll-out to deliver mid-single-digit top-line growth, expanding margins, double-digit EPS gains—and trade at a stable mid-teens P/E.
Revenue CAGR ≈ 3.4 %
At its October 2024 Capital Markets Day, management guided to net-revenue growth of ~4 % p.a. through 2027; consensus extends this to 2029, implying a rise from €115.8 b to €136.5 b—≈ 3.4 % CAGR .
EBITDA-AL margin +0.8 pp p.a.
With adjusted EBITDA-AL set to grow 4–6 % annually, scale-and-AI efficiencies should lift margins from ~37.6 % in 2025 to ~40.5 % by 2029—an average expansion of ~0.8 pp per year .
EPS +11 % p.a.
Analysts forecast adjusted EPS climbing from ~$1.95 (FY 2025) to ~$2.74 in 2027—an 11 % CAGR—and likely above €3.00 by 2029, underpinning rising dividends (from ~€1.00 to ~€1.50) and buy-backs .
P/E ≈ 16× in 2029
Today’s forward P/E is ~15.97×. Given stable risk and consensus earnings growth, the multiple should remain in the mid-teens—around 16× FY 2029 EPS .
Overall, Deutsche Telekom’s fibre/5G investments, AI cost-savings (€700 m by 2027) and T-Mobile US scale support a resilient earnings ramp—offering balanced upside at current valuations.
How well do narratives help inform your perspective?
Disclaimer
The user Chris1 holds no position in XTRA:DTE. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
