freenet Valuation

Is FNTN 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-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: FNTN (€28.72) is trading below our estimate of fair value (€86.89)

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


Key Valuation Metric

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

Key metric: As FNTN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for FNTN. This is calculated by dividing FNTN's market cap by their current earnings.
What is FNTN's PE Ratio?
PE Ratio12.4x
Earnings€275.10m
Market Cap€3.41b

Price to Earnings Ratio vs Peers

How does FNTN's PE Ratio compare to its peers?

The above table shows the PE ratio for FNTN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average17.4x
1U1 1&1
8.2x4.2%€2.1b
O2D Telefónica Deutschland Holding
22.7x-11.4%€6.2b
O2D Telefónica Deutschland Holding
26.5x-41.1%€7.2b
GP Grameenphone
12.1xn/a৳429.7b
FNTN freenet
12.4x4.2%€3.4b

Price-To-Earnings vs Peers: FNTN is good value based on its Price-To-Earnings Ratio (12.4x) compared to the peer average (17.4x).


Price to Earnings Ratio vs Industry

How does FNTN's PE Ratio compare vs other companies in the Global Wireless Telecom Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
FNTN 12.4xIndustry Avg. 16.9xNo. of Companies10PE01020304050+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: FNTN is good value based on its Price-To-Earnings Ratio (12.4x) compared to the Global Wireless Telecom industry average (16.9x).


Price to Earnings Ratio vs Fair Ratio

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

FNTN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.4x
Fair PE Ratio22.6x

Price-To-Earnings vs Fair Ratio: FNTN is good value based on its Price-To-Earnings Ratio (12.4x) compared to the estimated Fair Price-To-Earnings Ratio (22.6x).


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 FNTN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€28.72
€31.06
+8.1%
9.6%€36.00€25.00n/a14
Nov ’25€27.40
€30.49
+11.3%
9.0%€35.20€25.00n/a14
Oct ’25€26.78
€30.37
+13.4%
8.8%€34.50€25.00n/a14
Sep ’25€26.36
€30.16
+14.4%
8.6%€34.50€25.00n/a14
Aug ’25€25.42
€29.94
+17.8%
8.9%€34.50€25.00n/a14
Jul ’25€25.14
€29.79
+18.5%
8.1%€33.40€25.00n/a14
Jun ’25€23.98
€29.51
+23.0%
9.2%€33.40€25.00n/a14
May ’25€26.04
€29.84
+14.6%
9.8%€34.00€25.00n/a14
Apr ’25€26.08
€30.09
+15.4%
10.9%€36.00€25.00n/a14
Mar ’25€25.44
€29.61
+16.4%
10.0%€36.00€24.50n/a14
Feb ’25€25.24
€29.61
+17.3%
9.5%€35.00€24.50n/a14
Jan ’25€25.34
€29.57
+16.7%
9.7%€35.00€24.00n/a14
Dec ’24€26.20
€29.43
+12.3%
9.0%€34.00€24.00n/a14
Nov ’24€24.20
€29.20
+20.7%
8.6%€33.00€23.50€27.4015
Oct ’24€22.18
€28.97
+30.6%
9.3%€33.00€23.00€26.7815
Sep ’24€22.16
€28.97
+30.7%
9.3%€33.00€23.00€26.3615
Aug ’24€22.42
€28.81
+28.5%
9.3%€33.00€23.00€25.4215
Jul ’24€22.98
€28.71
+24.9%
9.3%€33.00€23.00€25.1415
Jun ’24€23.16
€28.71
+24.0%
9.3%€33.00€23.00€23.9815
May ’24€25.84
€27.05
+4.7%
14.5%€31.00€15.60€26.0415
Apr ’24€23.95
€26.66
+11.3%
14.6%€30.70€15.60€26.0814
Mar ’24€23.61
€26.59
+12.6%
14.6%€30.70€15.60€25.4414
Feb ’24€22.37
€25.85
+15.6%
14.3%€30.00€15.60€25.2413
Jan ’24€20.42
€25.78
+26.2%
14.4%€30.00€15.60€25.3413
Dec ’23€21.30
€25.74
+20.8%
15.0%€30.00€15.60€26.2013
Nov ’23€20.17
€27.15
+34.6%
11.0%€32.00€21.40€24.2013

Analyst Forecast: Target price is less than 20% higher than the current share price.


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