Telecom Italia S.p.A.

BATS-CHIXE:TITM Stock Report

Market Cap: €6.2b

Telecom Italia Valuation

Is TITM undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

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

Below Fair Value: TITM (€0.3) is trading below our estimate of fair value (€2.83)

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

Key Valuation Metric

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

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

The above table shows the Price to Sales ratio for TITM. This is calculated by dividing TITM's market cap by their current revenue.
What is TITM's PS Ratio?
PS Ratio0.4x
Sales€16.21b
Market Cap€6.23b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for TITM vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
BT.A BT Group
0.7x0.2%UK£14.4b
HTWS Helios Towers
1.6x8.0%UK£983.9m
ZEG Zegona Communications
9.7x37.6%UK£2.4b
AAF Airtel Africa
1.1x12.6%UK£4.0b
TITM Telecom Italia
0.4x-0.8%€6.2b

Price-To-Sales vs Peers: TITM is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (1.4x).

Price to Sales Ratio vs Industry

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

4 CompaniesPrice / SalesEstimated GrowthMarket Cap
No. of Companies12PS012345+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: TITM is good value based on its Price-To-Sales Ratio (0.4x) compared to the European Telecom industry average (1.1x).

Price to Sales Ratio vs Fair Ratio

What is TITM'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.

TITM PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ration/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate TITM's Price-To-Sales Fair Ratio for valuation analysis.

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 TITM forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Currentn/a
€0.33
0%
19.3%€0.42€0.20n/a14
Dec ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Nov ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Oct ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Sep ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Aug ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Jul ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Jun ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
May ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Apr ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Mar ’25€0.28
€0.33
+16.9%
19.3%€0.42€0.20n/a14
Feb ’25n/a
€0.33
0%
19.3%€0.42€0.20n/a14
Jan ’25€0.30
€0.33
+10.3%
19.3%€0.42€0.20n/a14
Dec ’24n/a
€0.33
0%
18.7%€0.42€0.20n/a15
Nov ’24n/a
€0.32
0%
24.9%€0.45€0.16n/a17
Oct ’24n/a
€0.32
0%
22.9%€0.41€0.16n/a16
Sep ’24n/a
€0.32
0%
25.5%€0.41€0.15n/a16
Aug ’24n/a
€0.31
0%
26.1%€0.41€0.15n/a16
Jul ’24n/a
€0.30
0%
27.3%€0.42€0.15n/a16
Jun ’24n/a
€0.30
0%
27.5%€0.42€0.15n/a16
May ’24n/a
€0.31
0%
27.9%€0.42€0.14n/a16
Apr ’24n/a
€0.31
0%
28.3%€0.42€0.14n/a16
Mar ’24n/a
€0.31
0%
28.3%€0.42€0.14€0.2816
Feb ’24n/a
€0.30
0%
31.8%€0.42€0.14n/a17
Jan ’24n/a
€0.30
0%
34.1%€0.45€0.14€0.3018
Dec ’23n/a
€0.30
0%
32.3%€0.45€0.15n/a18

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 Analysis2024/01/10 12:11
End of Day Share Price 2023/12/28 00:00
Earnings2023/09/30
Annual Earnings2022/12/31

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

Telecom Italia S.p.A. is covered by 55 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jean-Michel SalvadorAlphaValue
Alex PoundArete Research Services LLP
Fabrizio SpagnaAxia Financial Research