Telecom Italia S.p.A.

XTRA:TQI Stock Report

Market Cap: €5.2b

Telecom Italia Valuation

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

Below Fair Value: TQI (€0.23) is trading below our estimate of fair value (€1.97)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TQI. This is calculated by dividing TQI's market cap by their current revenue.
What is TQI's PS Ratio?
PS Ratio0.3x
Sales€16.49b
Market Cap€5.18b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TQI 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
0.7x-1.3%€6.2b
O2D Telefónica Deutschland Holding
0.8x-1.1%€7.2b
UTDI United Internet
0.4x4.2%€2.7b
DTE Deutsche Telekom
1.2x2.5%€144.3b
TQI Telecom Italia
0.3x-1.7%€5.2b

Price-To-Sales vs Peers: TQI is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.8x).

Price to Sales Ratio vs Industry

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

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
TQI 0.3xIndustry Avg. 1.1xNo. of Companies11PS012345+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TQI 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 TQI'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.

TQI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.3x
Fair PS Ratio0.4x

Price-To-Sales vs Fair Ratio: TQI is good value based on its Price-To-Sales Ratio (0.3x) compared to the estimated Fair Price-To-Sales Ratio (0.4x).

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 TQI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€0.23
€0.32
+41.9%
18.7%€0.40€0.20n/a15
Nov ’25€0.24
€0.32
+30.6%
18.8%€0.40€0.20n/a15
Oct ’25€0.21
€0.32
+50.7%
18.3%€0.40€0.20n/a15
Sep ’25€0.23
€0.32
+38.5%
19.2%€0.40€0.20n/a14
Aug ’25€0.24
€0.32
+31.2%
19.6%€0.40€0.20n/a14
Jul ’25€0.24
€0.33
+33.5%
19.4%€0.40€0.20n/a14
Jun ’25€0.25
€0.33
+30.4%
19.6%€0.40€0.20n/a14
May ’25€0.22
€0.33
+47.1%
21.9%€0.45€0.20n/a14
Apr ’25€0.23
€0.33
+48.4%
21.2%€0.45€0.20n/a13
Mar ’25€0.28
€0.35
+27.0%
18.5%€0.45€0.25n/a14
Feb ’25€0.29
€0.33
+16.7%
19.8%€0.42€0.20n/a13
Jan ’25€0.29
€0.33
+12.4%
19.3%€0.42€0.20n/a14
Dec ’24€0.28
€0.33
+19.4%
18.7%€0.42€0.20n/a15
Nov ’24€0.25
€0.32
+27.5%
24.9%€0.45€0.16€0.2417
Oct ’24€0.29
€0.32
+9.6%
22.9%€0.41€0.16€0.2116
Sep ’24€0.28
€0.32
+13.7%
25.5%€0.41€0.15€0.2316
Aug ’24€0.27
€0.31
+16.0%
26.1%€0.41€0.15€0.2416
Jul ’24€0.26
€0.30
+15.0%
27.3%€0.42€0.15€0.2416
Jun ’24€0.25
€0.30
+18.9%
27.5%€0.42€0.15€0.2516
May ’24€0.27
€0.31
+13.7%
27.9%€0.42€0.14€0.2216
Apr ’24€0.29
€0.31
+5.9%
28.3%€0.42€0.14€0.2316
Mar ’24€0.30
€0.31
+1.9%
28.3%€0.42€0.14€0.2816
Feb ’24€0.26
€0.30
+15.5%
31.8%€0.42€0.14€0.2917
Jan ’24€0.22
€0.30
+34.6%
34.1%€0.45€0.14€0.2918
Dec ’23€0.22
€0.30
+38.6%
32.3%€0.45€0.15€0.2818
Nov ’23€0.21
€0.30
+44.7%
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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