TEF Valuation
Telefonica SA
$
5.390
- Overview
- Forecast
- Valuation
- Earnings
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 Fair zone, suggesting that its current forward PE ratio of 13.92 is considered Fairly compared with the five-year average of 10.96. The fair price of Telefonica SA (TEF) is between 3.55 to 5.57 according to relative valuation methord.
Relative Value
Fair Zone
3.55-5.57
Current Price：5.39
Fair
13.92
PE
1Y
3Y
5Y
Trailing
Forward
5.56
EV/EBITDA
Telefonica SA. (TEF) has a current EV/EBITDA of 5.56. The 5-year average EV/EBITDA is 5.14. The thresholds are as follows: Strongly Undervalued below 4.03, Undervalued between 4.03 and 4.58, Fairly Valued between 5.70 and 4.58, Overvalued between 5.70 and 6.25, and Strongly Overvalued above 6.25. The current Forward EV/EBITDA of 5.56 falls within the Historic Trend Line -Fairly Valued range.
15.08
EV/EBIT
Telefonica SA. (TEF) has a current EV/EBIT of 15.08. The 5-year average EV/EBIT is 16.07. The thresholds are as follows: Strongly Undervalued below 13.80, Undervalued between 13.80 and 14.94, Fairly Valued between 17.21 and 14.94, Overvalued between 17.21 and 18.35, and Strongly Overvalued above 18.35. The current Forward EV/EBIT of 15.08 falls within the Historic Trend Line -Fairly Valued range.
0.68
PS
Telefonica SA. (TEF) has a current PS of 0.68. The 5-year average PS is 0.55. The thresholds are as follows: Strongly Undervalued below 0.41, Undervalued between 0.41 and 0.48, Fairly Valued between 0.62 and 0.48, Overvalued between 0.62 and 0.69, and Strongly Overvalued above 0.69. The current Forward PS of 0.68 falls within the Overvalued range.
2.71
P/OCF
Telefonica SA. (TEF) has a current P/OCF of 2.71. The 5-year average P/OCF is 2.12. The thresholds are as follows: Strongly Undervalued below 1.47, Undervalued between 1.47 and 1.80, Fairly Valued between 2.45 and 1.80, Overvalued between 2.45 and 2.77, and Strongly Overvalued above 2.77. The current Forward P/OCF of 2.71 falls within the Overvalued range.
10.07
P/FCF
Telefonica SA. (TEF) has a current P/FCF of 10.07. The 5-year average P/FCF is 6.78. The thresholds are as follows: Strongly Undervalued below 3.97, Undervalued between 3.97 and 5.37, Fairly Valued between 8.18 and 5.37, Overvalued between 8.18 and 9.58, and Strongly Overvalued above 9.58. The current Forward P/FCF of 10.07 falls within the Strongly Overvalued range.
Telefonica SA (TEF) has a current Price-to-Book (P/B) ratio of 1.32. Compared to its 3-year average P/B ratio of 0.99 , the current P/B ratio is approximately 33.47% higher. Relative to its 5-year average P/B ratio of 1.12, the current P/B ratio is about 18.45% higher. Telefonica SA (TEF) has a Forward Free Cash Flow (FCF) yield of approximately 18.40%. Compared to its 3-year average FCF yield of 22.97%, the current FCF yield is approximately -19.90% lower. Relative to its 5-year average FCF yield of 22.85% , the current FCF yield is about -19.45% lower.
1.32
P/B
Median3y
0.99
Median5y
1.12
18.40
FCF Yield
Median3y
22.97
Median5y
22.85
Competitors Valuation Multiple
The average P/S ratio for TEF's competitors is 28.43, providing a benchmark for relative valuation. Telefonica SA Corp (TEF) exhibits a P/S ratio of 0.68, which is -97.62% 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
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TEF increased by 23.16% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -30.91 to -53.79.
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
Is Telefonica SA (TEF) currently overvalued or undervalued?
Telefonica SA (TEF) is now in the Fair zone, suggesting that its current forward PE ratio of 13.92 is considered Fairly compared with the five-year average of 10.96. The fair price of Telefonica SA (TEF) is between 3.55 to 5.57 according to relative valuation methord.
What is Telefonica SA (TEF) fair value?
How does TEF's valuation metrics compare to the industry average?
What is the current P/B ratio for Telefonica SA (TEF) as of Jul 28 2025?
What is the current FCF Yield for Telefonica SA (TEF) as of Jul 28 2025?
What is the current Forward P/E ratio for Telefonica SA (TEF) as of Jul 28 2025?