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 34.04 is considered Overvalued compared with the five-year average of 11.68. The fair price of Telefonica SA (TEF) is between 1.03 to 2.16 according to relative valuation methord. Compared to the current price of 4.17 USD , Telefonica SA is Overvalued By 93.16%.
Relative Value
Fair Zone
1.03-2.16
Current Price：4.17
93.16%
Overvalued
34.20
PE
1Y
3Y
5Y
Trailing
Forward
5.05
EV/EBITDA
Telefonica SA. (TEF) has a current EV/EBITDA of 5.05. 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 6.28, and Strongly Overvalued above 6.28. The current Forward EV/EBITDA of 5.05 falls within the Historic Trend Line -Fairly Valued range.
13.91
EV/EBIT
Telefonica SA. (TEF) has a current EV/EBIT of 13.91. The 5-year average EV/EBIT is 16.03. The thresholds are as follows: Strongly Undervalued below 13.67, Undervalued between 13.67 and 14.85, Fairly Valued between 17.21 and 14.85, Overvalued between 17.21 and 18.39, and Strongly Overvalued above 18.39. The current Forward EV/EBIT of 13.91 falls within the Undervalued range.
0.55
PS
Telefonica SA. (TEF) has a current PS of 0.55. The 5-year average PS is 0.57. The thresholds are as follows: Strongly Undervalued below 0.44, Undervalued between 0.44 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 0.55 falls within the Historic Trend Line -Fairly Valued range.
2.01
P/OCF
Telefonica SA. (TEF) has a current P/OCF of 2.01. The 5-year average P/OCF is 2.19. The thresholds are as follows: Strongly Undervalued below 1.62, Undervalued between 1.62 and 1.90, Fairly Valued between 2.47 and 1.90, Overvalued between 2.47 and 2.76, and Strongly Overvalued above 2.76. The current Forward P/OCF of 2.01 falls within the Historic Trend Line -Fairly Valued range.
8.13
P/FCF
Telefonica SA. (TEF) has a current P/FCF of 8.13. The 5-year average P/FCF is 7.01. The thresholds are as follows: Strongly Undervalued below 4.28, Undervalued between 4.28 and 5.64, Fairly Valued between 8.37 and 5.64, Overvalued between 8.37 and 9.73, and Strongly Overvalued above 9.73. The current Forward P/FCF of 8.13 falls within the Historic Trend Line -Fairly Valued range.
Telefonica SA (TEF) has a current Price-to-Book (P/B) ratio of 1.14. Compared to its 3-year average P/B ratio of 1.06 , the current P/B ratio is approximately 7.58% higher. Relative to its 5-year average P/B ratio of 1.11, the current P/B ratio is about 2.63% higher. Telefonica SA (TEF) has a Forward Free Cash Flow (FCF) yield of approximately 20.27%. Compared to its 3-year average FCF yield of 22.76%, the current FCF yield is approximately -10.92% lower. Relative to its 5-year average FCF yield of 22.09% , the current FCF yield is about -8.25% lower.
1.15
P/B
Median3y
1.06
Median5y
1.11
20.27
FCF Yield
Median3y
22.76
Median5y
22.09
Competitors Valuation Multiple
The average P/S ratio for TEF's competitors is 0.55, providing a benchmark for relative valuation. Telefonica SA Corp (TEF) exhibits a P/S ratio of 0.55, which is 0.00% above the industry average. Given its robust revenue growth of 6.39%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TEF increased by 8.13% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -12.27 to -19.51.
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.
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FAQ
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