A Look at Deutsche Telekom (XTRA:DTE) Valuation Following Buyback Move, World Cup Rights and Analyst Upgrades

Deutsche Telekom (XTRA:DTE) is in focus following a string of impactful moves. Investors are watching closely after the company announced a €2 billion share buy-back program and secured broadcasting rights for the 2026 FIFA World Cup in Germany.

See our latest analysis for Deutsche Telekom.

Momentum around Deutsche Telekom has been building, thanks to its recent buy-back announcement, World Cup broadcasting rights, and growing optimism about T-Mobile US’s strong performance. Over the past year, total shareholder returns reached 13.8 percent, showing resilience even as short-term price moves remain modest.

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With analysts upbeat and major strategic wins piling up, the key question is whether Deutsche Telekom stock still trades below its true value or if the market has already priced in all of this future growth potential.

Most Popular Narrative: 22.6% Undervalued

Deutsche Telekom’s current share price of €29.07 sits well below the narrative fair value estimate of €37.58. This wide gap is getting the attention of value seekers, especially given the focus on efficiency gains and future profitability.

Rapid AI and digital transformation initiatives, including AI-powered network management, customer support automation, and industrial AI collaborations (notably with NVIDIA), are expected to materially lower operating costs and increase efficiency, supporting margin expansion and higher free cash flow in the medium to long term.

Read the complete narrative.

Curious about what’s baking these bullish numbers in? The narrative is powered by aggressive cost-reduction plans, digital infrastructure investments, and a future profit multiple typically seen in faster-growing industries. Want to uncover the pivotal forecast that could shift expectations? Unlock the full storyline to see the quantitative drivers analysts are banking on.

Result: Fair Value of €37.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent competition in Germany and heavy fiber investment demands could slow growth and challenge the optimistic outlook for Deutsche Telekom’s long-term earnings.

Find out about the key risks to this Deutsche Telekom narrative.

Build Your Own Deutsche Telekom Narrative

If you think the story could unfold differently or want to dig into the numbers yourself, you can craft your own narrative in just a few minutes. Do it your way

A great starting point for your Deutsche Telekom research is our analysis highlighting 6 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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