TEF Valuation

Telefonica SA

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4.140

-0.02(-0.481%)1D

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 11.14 is considered Fairly compared with the five-year average of 10.81. The fair price of Telefonica SA (TEF) is between 3.01 to 5.22 according to relative valuation methord.

Relative Value

Fair Zone

3.01-5.22

Current Price：4.14

Fair

11.14

Trailing

Forward

5.12

EV/EBITDA

Telefonica SA. (TEF) has a current EV/EBITDA of 5.12. 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 5.72 and 4.58, Overvalued between 5.72 and 6.29, and Strongly Overvalued above 6.29. The current Forward EV/EBITDA of 5.12 falls within the Historic Trend Line -Fairly Valued range.

13.62

EV/EBIT

Telefonica SA. (TEF) has a current EV/EBIT of 13.62. The 5-year average EV/EBIT is 16.07. The thresholds are as follows: Strongly Undervalued below 13.77, Undervalued between 13.77 and 14.92, Fairly Valued between 17.22 and 14.92, Overvalued between 17.22 and 18.37, and Strongly Overvalued above 18.37. The current Forward EV/EBIT of 13.62 falls within the Strongly Undervalued range.

3.64

Telefonica SA. (TEF) has a current PS of 3.64. The 5-year average PS is 0.58. The thresholds are as follows: Strongly Undervalued below 0.13, Undervalued between 0.13 and 0.36, Fairly Valued between 0.81 and 0.36, Overvalued between 0.81 and 1.03, and Strongly Overvalued above 1.03. The current Forward PS of 3.64 falls within the Strongly Overvalued range.

1.98

P/OCF

Telefonica SA. (TEF) has a current P/OCF of 1.98. The 5-year average P/OCF is 2.18. The thresholds are as follows: Strongly Undervalued below 1.59, Undervalued between 1.59 and 1.89, Fairly Valued between 2.47 and 1.89, Overvalued between 2.47 and 2.77, and Strongly Overvalued above 2.77. The current Forward P/OCF of 1.98 falls within the Historic Trend Line -Fairly Valued range.

6.73

P/FCF

Telefonica SA. (TEF) has a current P/FCF of 6.73. The 5-year average P/FCF is 6.94. The thresholds are as follows: Strongly Undervalued below 4.28, Undervalued between 4.28 and 5.61, Fairly Valued between 8.27 and 5.61, Overvalued between 8.27 and 9.60, and Strongly Overvalued above 9.60. The current Forward P/FCF of 6.73 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 1.05 , the current P/B ratio is approximately 10.88% higher. Relative to its 5-year average P/B ratio of 1.12, the current P/B ratio is about 3.93% higher. Telefonica SA (TEF) has a Forward Free Cash Flow (FCF) yield of approximately 20.31%. Compared to its 3-year average FCF yield of 23.00%, the current FCF yield is approximately -11.73% lower. Relative to its 5-year average FCF yield of 22.31% , the current FCF yield is about -8.98% lower.

1.17

P/B

Median3y

1.05

Median5y

1.12

20.31

FCF Yield

Median3y

23.00

Median5y

22.31

Competitors Valuation Multiple

The average P/S ratio for TEF's competitors is 40.61, providing a benchmark for relative valuation. Telefonica SA Corp (TEF) exhibits a P/S ratio of 3.64, which is -91.03% 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

Iridium Communications Inc

Ituran Location and Control Ltd

Performance Decomposition

Market capitalization of TEF decreased by 3.89% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -13.44 to -19.75.

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

47.00%

-13.44 → -19.75

P/E Change

-3.89%