TEF PE Ratio & Valuation,Is TEF Overvalued

TEF Relative Valuation

TEF's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TEF is overvalued; if below, it's undervalued.

Historical Valuation

Telefonica SA (TEF) is now in the Overvalued zone, suggesting that its current forward PE ratio of 34.78 is considered Overvalued compared with the five-year average of 11.35. The fair price of Telefonica SA (TEF) is between 1.09 to 2.26 according to relative valuation methord. Compared to the current price of 4.27 USD , Telefonica SA is Overvalued By 88.69%.

Relative Value

Fair Zone

1.09-2.26

Current Price：4.27

88.69%

Overvalued

11.84

5.16

EV/EBITDA

Telefonica SA. (TEF) has a current EV/EBITDA of 5.16. The 5-year average EV/EBITDA is 5.15. The thresholds are as follows: Strongly Undervalued below 4.02, Undervalued between 4.02 and 4.58, Fairly Valued between 5.71 and 4.58, Overvalued between 5.71 and 6.27, and Strongly Overvalued above 6.27. The current Forward EV/EBITDA of 5.16 falls within the Historic Trend Line -Fairly Valued range.

14.01

EV/EBIT

Telefonica SA. (TEF) has a current EV/EBIT of 14.01. The 5-year average EV/EBIT is 16.02. The thresholds are as follows: Strongly Undervalued below 13.64, Undervalued between 13.64 and 14.83, Fairly Valued between 17.21 and 14.83, Overvalued between 17.21 and 18.40, and Strongly Overvalued above 18.40. The current Forward EV/EBIT of 14.01 falls within the Undervalued range.

0.57

Telefonica SA. (TEF) has a current PS of 0.57. The 5-year average PS is 0.57. The thresholds are as follows: Strongly Undervalued below 0.45, Undervalued between 0.45 and 0.51, Fairly Valued between 0.64 and 0.51, Overvalued between 0.64 and 0.70, and Strongly Overvalued above 0.70. The current Forward PS of 0.57 falls within the Historic Trend Line -Fairly Valued range.

2.10

P/OCF

Telefonica SA. (TEF) has a current P/OCF of 2.10. The 5-year average P/OCF is 2.19. The thresholds are as follows: Strongly Undervalued below 1.62, Undervalued between 1.62 and 1.91, Fairly Valued between 2.47 and 1.91, Overvalued between 2.47 and 2.76, and Strongly Overvalued above 2.76. The current Forward P/OCF of 2.10 falls within the Historic Trend Line -Fairly Valued range.

8.31

P/FCF

Telefonica SA. (TEF) has a current P/FCF of 8.31. The 5-year average P/FCF is 7.01. The thresholds are as follows: Strongly Undervalued below 4.29, Undervalued between 4.29 and 5.65, Fairly Valued between 8.38 and 5.65, Overvalued between 8.38 and 9.74, and Strongly Overvalued above 9.74. The current Forward P/FCF of 8.31 falls within the Historic Trend Line -Fairly Valued range.

Telefonica SA (TEF) has a current Price-to-Book (P/B) ratio of 1.17. Compared to its 3-year average P/B ratio of 1.07 , the current P/B ratio is approximately 9.21% higher. Relative to its 5-year average P/B ratio of 1.11, the current P/B ratio is about 4.95% higher. Telefonica SA (TEF) has a Forward Free Cash Flow (FCF) yield of approximately 19.82%. Compared to its 3-year average FCF yield of 22.72%, the current FCF yield is approximately -12.73% lower. Relative to its 5-year average FCF yield of 22.06% , the current FCF yield is about -10.15% lower.

1.19

P/B

Median3y

1.07

Median5y

1.11

19.82

FCF Yield

Median3y

22.72

Median5y

22.06

Competitors Valuation Multiple

The average P/S ratio for TEF's competitors is 22.31, providing a benchmark for relative valuation. Telefonica SA Corp (TEF) exhibits a P/S ratio of 0.57, which is -97.43% above the industry average. Given its robust revenue growth of 6.39%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TEF increased by 10.19% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -12.50 to -20.13.

The secondary factor is the Revenue Growth, contributed 6.39%to the performance.

Overall, the performance of TEF in the past 1 year is driven by P/E Change. Which is more unsustainable.

6.39%

10.92B → 11.62B

Revenue Growth

-57.28%

-20.18 → -8.62

Margin Expansion

61.08%

-12.50 → -20.13

P/E Change

10.19%

3.88 → 4.27

Mkt Cap Growth

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Frequently Asked Questions

Is Telefonica SA (TEF) currently overvalued or undervalued?

What is Telefonica SA (TEF) fair value?

TEF's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Telefonica SA (TEF) is between 1.09 to 2.26 according to relative valuation methord.

How does TEF's valuation metrics compare to the industry average?

What is the current P/B ratio for Telefonica SA (TEF) as of Dec 15 2025?

As of Dec 15 2025, Telefonica SA (TEF) has a P/B ratio of 1.17. This indicates that the market values TEF at 1.17 times its book value.

What is the current FCF Yield for Telefonica SA (TEF) as of Dec 15 2025?

As of Dec 15 2025, Telefonica SA (TEF) has a FCF Yield of 19.82%. This means that for every dollar of Telefonica SA’s market capitalization, the company generates 19.82 cents in free cash flow.

What is the current Forward P/E ratio for Telefonica SA (TEF) as of Dec 15 2025?

As of Dec 15 2025, Telefonica SA (TEF) has a Forward P/E ratio of 34.78. This means the market is willing to pay $34.78 for every dollar of Telefonica SA’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Telefonica SA (TEF) as of Dec 15 2025?

As of Dec 15 2025, Telefonica SA (TEF) has a Forward P/S ratio of 0.57. This means the market is valuing TEF at $0.57 for every dollar of expected revenue over the next 12 months.

TEF Valuation