Telefónica, S.A.

XTRA:TNE5 Stock Report

Market Cap: €24.2b

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.

Below Fair Value: TNE5 (€4.3) is trading below our estimate of fair value (€7.67)

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€24.24b

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 Average0.8x
O2D Telefónica Deutschland Holding
0.8x-1.1%€7.2b
O2D Telefónica Deutschland Holding
0.7x-1.3%€6.2b
DTE Deutsche Telekom
1.2x2.5%€144.3b
UTDI United Internet
0.4x4.2%€2.7b
TNE5 Telefónica
0.6x0.8%€24.2b

Price-To-Sales vs Peers: TNE5 is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

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

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
TNE5 0.6xIndustry Avg. 1.1xNo. of Companies11PS012345+
4 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 Ratio1.1x

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 (1.1x).

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€4.30
€4.25
-1.3%
12.7%€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€3.20n/a21
Dec ’24€4.00
€4.23
+5.9%
13.2%€5.10€3.20n/a21
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
Dec ’23€3.64
€4.58
+26.0%
20.8%€6.40€2.70€4.0025
Nov ’23€3.50
€4.75
+35.5%
19.8%€6.40€2.75€3.6026

Analyst Forecast: Target price is lower than the current share price.

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