Telecom Italia S.p.A.

WBAG:TIT Stock Report

Market Cap: €5.3b

Telecom Italia Valuation

Is TIT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TIT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: TIT (€0.24) is trading below our estimate of fair value (€2.02)

Significantly Below Fair Value: TIT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TIT?

Key metric: As TIT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TIT. This is calculated by dividing TIT's market cap by their current revenue.
What is TIT's PS Ratio?
PS Ratio0.3x
Sales€16.49b
Market Cap€5.34b

Price to Sales Ratio vs Peers

How does TIT's PS Ratio compare to its peers?

The above table shows the PS ratio for TIT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1.7x
TKA Telekom Austria
1x3.7%€5.1b
ETS EuroTeleSites
2.3x-6.5%€847.2m
TM Telekom Malaysia Berhad
2x2.7%RM 24.3b
TPG TPG Telecom
1.5x2.4%AU$8.3b
TIT Telecom Italia
0.3x-2.0%€5.3b

Price-To-Sales vs Peers: TIT is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (1.7x).

Price to Sales Ratio vs Industry

How does TIT's PS Ratio compare vs other companies in the European Telecom Industry?

5 CompaniesPrice / SalesEstimated GrowthMarket Cap
TIT 0.3xIndustry Avg. 1.1xNo. of Companies12PS012345+
5 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TIT is good value based on its Price-To-Sales Ratio (0.3x) compared to the European Telecom industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is TIT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TIT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: TIT is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TIT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.24
€0.32
+35.3%
18.7%€0.40€0.20n/a15
Nov ’25€0.23
€0.32
+35.0%
18.8%€0.40€0.20n/a15
Oct ’25€0.25
€0.32
+29.2%
18.3%€0.40€0.20n/a15
Sep ’25€0.24
€0.32
+33.2%
19.2%€0.40€0.20n/a14
Aug ’25€0.23
€0.32
+39.0%
19.6%€0.40€0.20n/a14
Jul ’25€0.22
€0.33
+46.5%
19.4%€0.40€0.20n/a14
Jun ’25€0.24
€0.33
+39.5%
19.6%€0.40€0.20n/a14
May ’25€0.23
€0.33
+46.2%
21.9%€0.45€0.20n/a14
Apr ’25€0.22
€0.33
+54.6%
21.2%€0.45€0.20n/a13
Mar ’25€0.28
€0.35
+26.4%
18.5%€0.45€0.25n/a14
Feb ’25€0.28
€0.33
+18.0%
19.8%€0.42€0.20n/a13
Jan ’25€0.30
€0.33
+10.3%
19.3%€0.42€0.20n/a14
Dec ’24€0.27
€0.33
+24.8%
18.7%€0.42€0.20n/a15
Nov ’24€0.25
€0.32
+32.4%
24.9%€0.45€0.16€0.2317
Oct ’24€0.30
€0.32
+6.3%
22.9%€0.41€0.16€0.2516
Sep ’24€0.29
€0.32
+9.3%
25.5%€0.41€0.15€0.2416
Aug ’24€0.27
€0.31
+15.5%
26.1%€0.41€0.15€0.2316
Jul ’24€0.26
€0.30
+16.0%
27.3%€0.42€0.15€0.2216
Jun ’24€0.25
€0.30
+20.5%
27.5%€0.42€0.15€0.2416
May ’24€0.27
€0.31
+14.8%
27.9%€0.42€0.14€0.2316
Apr ’24€0.31
€0.31
+1.0%
28.3%€0.42€0.14€0.2216
Mar ’24€0.31
€0.31
+0.5%
28.3%€0.42€0.14€0.2816
Feb ’24€0.26
€0.30
+13.0%
31.8%€0.42€0.14€0.2817
Jan ’24€0.22
€0.30
+34.0%
34.1%€0.45€0.14€0.3018
Dec ’23€0.22
€0.30
+39.2%
32.3%€0.45€0.15€0.2718
Nov ’23€0.21
€0.30
+43.9%
31.4%€0.45€0.15€0.2518

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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