Narrative Update • Aug 24
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German (DAX) Telecom Sector Analysis
UpdatedSep 02, 2026
DataAggregated Company Financials
Companies46
- 7D-1.7%
- 3M0.9%
- 1Y-9.9%
- YTD-1.0%
Over the last 7 days, the Telecom industry has dropped 1.2%, driven by a pullback from Deutsche Telekom of 2.7%. In contrast, United Internet has gained 7.1%. However, the industry is down 10% over the past year. Looking forward, earnings are forecast to grow by 11% annually.
Sector Valuation and Performance
Has the German Telecom Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Wed, 02 Sep 2026 | €197.7b | €165.7b | €10.9b | 17.3x | 18.2x | 1.2x |
| Fri, 31 Jul 2026 | €190.9b | €163.9b | €10.9b | 17.8x | 17.5x | 1.2x |
| Sun, 28 Jun 2026 | €184.9b | €163.8b | €10.9b | 16.1x | 16.9x | 1.1x |
| Tue, 26 May 2026 | €202.6b | €163.7b | €10.9b | 24.4x | 18.6x | 1.2x |
| Thu, 23 Apr 2026 | €195.8b | €164.3b | €11.4b | 21x | 17.2x | 1.2x |
| Sat, 21 Mar 2026 | €215.4b | €164.6b | €11.4b | 21.1x | 18.8x | 1.3x |
| Mon, 16 Feb 2026 | €215.9b | €163.9b | €14.0b | 21.2x | 15.4x | 1.3x |
| Wed, 14 Jan 2026 | €200.2b | €163.1b | €13.7b | 22.6x | 14.6x | 1.2x |
| Fri, 12 Dec 2025 | €192.7b | €163.1b | €13.7b | 22.9x | 14.1x | 1.2x |
| Sun, 09 Nov 2025 | €191.4b | €162.3b | €14.4b | 25.2x | 13.3x | 1.2x |
| Tue, 07 Oct 2025 | €205.5b | €162.2b | €14.4b | 24.8x | 14.3x | 1.3x |
| Thu, 04 Sep 2025 | €667.5b | €163.1b | €14.6b | 24.3x | 45.8x | 4.1x |
| Sat, 02 Aug 2025 | €664.4b | €163.5b | €13.9b | 19.4x | 47.7x | 4.1x |
| Mon, 30 Jun 2025 | €224.0b | €162.7b | €13.8b | 25.8x | 16.2x | 1.4x |
| Wed, 28 May 2025 | €239.9b | €162.7b | €13.8b | 26.1x | 17.4x | 1.5x |
| Fri, 25 Apr 2025 | €229.5b | €160.5b | €13.1b | 21.9x | 17.5x | 1.4x |
| Sun, 23 Mar 2025 | €234.4b | €160.7b | €13.1b | 23.2x | 17.9x | 1.5x |
| Tue, 18 Feb 2025 | €229.1b | €157.3b | €7.7b | 30x | 29.7x | 1.5x |
| Thu, 16 Jan 2025 | €207.1b | €157.3b | €7.7b | 26.7x | 26.8x | 1.3x |
| Sat, 14 Dec 2024 | €205.3b | €157.3b | €7.7b | 24.4x | 26.6x | 1.3x |
| Mon, 11 Nov 2024 | €205.4b | €156.8b | €6.7b | 25.6x | 30.8x | 1.3x |
| Wed, 09 Oct 2024 | €197.6b | €156.7b | €6.7b | 26.4x | 29.6x | 1.3x |
| Fri, 06 Sep 2024 | €189.8b | €157.8b | €7.1b | 26.1x | 26.6x | 1.2x |
| Sun, 04 Aug 2024 | €178.2b | €156.2b | €6.6b | 22x | 27x | 1.1x |
| Tue, 02 Jul 2024 | €176.7b | €156.1b | €6.6b | 23.9x | 26.7x | 1.1x |
| Thu, 30 May 2024 | €167.2b | €156.2b | €6.6b | 24.3x | 25.3x | 1.1x |
| Sat, 27 Apr 2024 | €168.6b | €155.9b | €6.3b | 23.8x | 26.8x | 1.1x |
| Mon, 25 Mar 2024 | €167.3b | €155.8b | €6.3b | 26.1x | 26.7x | 1.1x |
| Wed, 21 Feb 2024 | €169.5b | €156.6b | €8.3b | 25.5x | 20.4x | 1.1x |
| Fri, 19 Jan 2024 | €214.1b | €158.9b | €9.1b | 27.3x | 23.6x | 1.3x |
| Sun, 17 Dec 2023 | €206.4b | €159.0b | €9.1b | 25.8x | 22.7x | 1.3x |
| Tue, 14 Nov 2023 | €205.7b | €159.0b | €8.9b | 27.2x | 23.1x | 1.3x |
| Thu, 12 Oct 2023 | €197.3b | €160.2b | €8.5b | 24.6x | 23.2x | 1.2x |
| Sat, 09 Sep 2023 | €194.6b | €160.5b | €8.4b | 23x | 23.3x | 1.2x |
Price to Earnings Ratio
23.3x
Current Industry PE
- Investors are pessimistic on the German Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The industry is trading at a PE ratio of 18.2x which is lower than its 3-year average PE of 22.3x.
- The 3-year average PS ratio of 1.4x is higher than the industry's current PS ratio of 1.2x.
Past Earnings Growth
- The earnings for companies in the Communication Services industry have grown 9.1% per year over the last three years, while revenues have remained mostly flat.
- This means that companies overall are more efficiently conducting business since profits are increasing while sales have been flat.
Industry Trends
Which industries have driven the changes within the German Telecom sector?
| DE Market | -0.67% | |
| Telecom | -1.75% | |
| Wireless Telecom | 2.68% | |
| Telecom Services and Carriers | -1.78% | |
| Media | -2.54% | |
| Entertainment | -2.60% | |
| Interactive Media and Services | -3.25% | |
Industry PE
- Investors are most optimistic about the Media industry even though it's trading below its 3-year average PE ratio of 54.2x.
- Analysts are expecting annual earnings growth of 26.4%, which is higher than its past year's earnings decline of 12.9% per year.
- Investors are most pessimistic about the Telecom Services and Carriers industry, which is trading below its 3-year average of 21.9x.
Forecasted Growth
- Analysts are most optimistic on the Media industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings decline of 13% per year.
- In contrast, the Wireless Telecom industry is expected to see its earnings grow by 8.9% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| UTDI United Internet | €27.02 | 7.1% +€311.1m | 1.0% | PE14.7x | |
| 1U1 1&1 | €23.45 | 4.9% +€194.2m | 16.1% | PE34.1x | |
| O2D Telefónica Deutschland Holding | €1.96 | 1.8% +€104.1m | -4.4% | PE34.9x | |
| CLIQ Cliq Digital | €4.86 | 23.7% +€5.4m | 62.0% | PS0.5x | |
| NAO naoo | €3.98 | 23.2% +€3.1m | -52.6% | n/a |