Update shared on 17 Nov 2025
Fair value Increased 0.57%Analysts have modestly raised United Internet's fair value estimate to €30.94. This increase reflects an improved profit margin and revenue outlook, despite lower sector valuation multiples cited in recent research updates.
Analyst Commentary
Bullish Takeaways- Bullish analysts see potential for share outperformance, driven by anticipated telecom sector mergers in the near term. These developments could positively impact United Internet's positioning.
- Recent upgrades in analyst stance reflect improving confidence in United Internet's operational execution and revenue generation capacity.
- Market participants note that the company's core business remains resilient, with potential for enhanced margin growth despite sector headwinds.
- The revised fair value estimate signals expectations of continued improvement in profitability and overall financial health.
- Some analysts express caution due to declining valuation multiples in key assets, particularly Ionos, which contribute to more conservative price targets.
- Downgrades reflect concerns that current sector trends could limit near-term upside and reduce the company's premium relative to peers.
- There are pervasive concerns regarding the sustainability of recent profit improvements, given a challenging industry landscape.
- Ongoing market uncertainties may constrain future growth and prompt a more neutral stance among some market watchers.
What's in the News
- United Internet AG has lowered its earnings guidance for 2025, now expecting consolidated sales from continued operations to reach approximately EUR 6.05 billion. This compares to the prior-year figure of EUR 5.991 billion and previous guidance, which included Sedo, at around EUR 6.45 billion (Key Developments).
Valuation Changes
- Fair Value Estimate has risen slightly from €30.76 to €30.94, reflecting marginally improved expectations.
- Discount Rate increased from 5.26% to 5.45%. This indicates a moderately higher risk assessment in company valuation models.
- Revenue Growth projection increased from 3.12% to 3.83%, signifying improved growth expectations.
- Net Profit Margin estimate edged up from 7.49% to 7.87%. This suggests a modest uplift in profitability outlook.
- Future Price-to-Earnings (P/E) ratio fell from 11.63x to 11.10x. This is consistent with lower valuation multiples across the sector.
Disclaimer
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