Telefónica, S.A.

XTRA:TNE5 Stock Report

Market Cap: €22.4b

Telefónica Valuation

Is TNE5 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 TNE5 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
€7.27
Fair Value
45.3% undervalued intrinsic discount
19
Number of Analysts

Below Fair Value: TNE5 (€3.98) is trading below our estimate of fair value (€7.27)

Significantly Below Fair Value: TNE5 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TNE5?

Key metric: As TNE5 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TNE5. This is calculated by dividing TNE5's market cap by their current revenue.
What is TNE5's PS Ratio?
PS Ratio0.6x
Sales€40.57b
Market Cap€22.38b

Price to Sales Ratio vs Peers

How does TNE5's PS Ratio compare to its peers?

The above table shows the PS ratio for TNE5 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.9x
O2D Telefónica Deutschland Holding
0.7x-0.9%€6.2b
DTE Deutsche Telekom
1.3x2.8%€148.5b
UTDI United Internet
0.4x3.8%€2.7b
BCE BCE
1.2x1.9%CA$30.6b
TNE5 Telefónica
0.6x0.7%€22.4b

Price-To-Sales vs Peers: TNE5 is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.9x).

Price to Sales Ratio vs Industry

How does TNE5's PS Ratio compare vs other companies in the European Telecom Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
TNE5 0.6xIndustry Avg. 1.1xNo. of Companies10PS012345+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TNE5 is good value based on its Price-To-Sales Ratio (0.6x) compared to the European Telecom industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is TNE5'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.

TNE5 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio1x

Price-To-Sales vs Fair Ratio: TNE5 is good value based on its Price-To-Sales Ratio (0.6x) 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 TNE5 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€3.98
€4.29
+7.9%
13.0%€5.20€3.20n/a19
Jan ’26€3.94
€4.28
+8.5%
12.9%€5.20€3.20n/a20
Dec ’25€4.29
€4.28
-0.4%
13.1%€5.20€3.20n/a20
Nov ’25€4.33
€4.24
-2.0%
11.5%€5.00€3.20n/a21
Oct ’25€4.39
€4.18
-4.7%
12.2%€5.00€3.20n/a23
Sep ’25€4.10
€4.18
+1.9%
12.2%€5.00€3.20n/a23
Aug ’25€4.15
€4.20
+1.1%
12.3%€5.00€3.20n/a22
Jul ’25€3.99
€4.22
+5.7%
12.5%€5.10€3.20n/a23
Jun ’25€4.30
€4.26
-0.9%
11.9%€5.10€3.30n/a23
May ’25€4.23
€4.26
+0.6%
12.0%€5.10€3.30n/a23
Apr ’25€4.08
€4.31
+5.5%
11.6%€5.10€3.30n/a22
Mar ’25€3.81
€4.28
+12.3%
12.2%€5.00€3.30n/a22
Feb ’25€3.73
€4.23
+13.5%
11.9%€5.00€3.20n/a22
Jan ’25€3.53
€4.23
+19.7%
12.2%€5.00€3.20€3.9421
Dec ’24€4.00
€4.23
+5.9%
13.2%€5.10€3.20€4.2921
Nov ’24€3.60
€4.15
+15.1%
15.4%€5.10€2.70€4.3323
Oct ’24€3.88
€4.22
+8.9%
14.9%€5.10€2.70€4.3923
Sep ’24€3.83
€4.23
+10.4%
15.1%€5.00€2.70€4.1025
Aug ’24€3.84
€4.40
+14.5%
13.5%€5.30€3.00€4.1525
Jul ’24€3.73
€4.39
+17.7%
14.3%€5.30€2.70€3.9924
Jun ’24€3.94
€4.39
+11.6%
15.2%€5.60€2.70€4.3024
May ’24€4.13
€4.30
+4.3%
17.6%€5.60€2.70€4.2326
Apr ’24€3.98
€4.32
+8.7%
17.5%€5.60€2.70€4.0826
Mar ’24€3.90
€4.30
+10.2%
18.5%€5.60€2.50€3.8126
Feb ’24€3.50
€4.40
+25.7%
19.8%€6.40€2.50€3.7326
Jan ’24€3.40
€4.51
+32.6%
19.6%€6.40€2.70€3.5325
Analyst Price Target
Consensus Narrative from 19 Analysts
€4.30
Fair Value
7.4% undervalued intrinsic discount
19
Number of Analysts

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/18 23:11
End of Day Share Price 2025/01/17 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Telefónica, S.A. is covered by 65 analysts. 16 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Luis Padrón de la CruzAhorro Corporación
José Valle CarrascalAhorro Corporación
Jean-Michel SalvadorAlphaValue