TEO Valuation

Telecom Argentina SA

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9.410

+0.23(2.505%)1D

Overview
Forecast
Valuation
Earnings

TEO Relative Valuation

TEO'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, TEO is overvalued; if below, it's undervalued.

Historical Valuation

Telecom Argentina SA (TEO) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.67 is considered Undervalued compared with the five-year average of 14.77. The fair price of Telecom Argentina SA (TEO) is between 14.34 to 21.54 according to relative valuation methord. Compared to the current price of 9.43 USD , Telecom Argentina SA is Undervalued By 34.22%.

Relative Value

Fair Zone

14.34-21.54

Current Price：9.43

34.22%

Undervalued

9.27

Trailing

Forward

4.15

EV/EBITDA

Telecom Argentina SA. (TEO) has a current EV/EBITDA of 4.15. The 5-year average EV/EBITDA is 5.68. The thresholds are as follows: Strongly Undervalued below 3.12, Undervalued between 3.12 and 4.40, Fairly Valued between 6.95 and 4.40, Overvalued between 6.95 and 8.23, and Strongly Overvalued above 8.23. The current Forward EV/EBITDA of 4.15 falls within the Undervalued range.

12.90

EV/EBIT

Telecom Argentina SA. (TEO) has a current EV/EBIT of 12.90. The 5-year average EV/EBIT is 324.00. The thresholds are as follows: Strongly Undervalued below -2128.34, Undervalued between -2128.34 and -902.17, Fairly Valued between 1550.17 and -902.17, Overvalued between 1550.17 and 2776.34, and Strongly Overvalued above 2776.34. The current Forward EV/EBIT of 12.90 falls within the Historic Trend Line -Fairly Valued range.

0.62

Telecom Argentina SA. (TEO) has a current PS of 0.62. The 5-year average PS is 1.17. The thresholds are as follows: Strongly Undervalued below 0.53, Undervalued between 0.53 and 0.85, Fairly Valued between 1.49 and 0.85, Overvalued between 1.49 and 1.81, and Strongly Overvalued above 1.81. The current Forward PS of 0.62 falls within the Undervalued range.

3.34

P/OCF

Telecom Argentina SA. (TEO) has a current P/OCF of 3.34. The 5-year average P/OCF is 4.96. The thresholds are as follows: Strongly Undervalued below 2.37, Undervalued between 2.37 and 3.66, Fairly Valued between 6.25 and 3.66, Overvalued between 6.25 and 7.55, and Strongly Overvalued above 7.55. The current Forward P/OCF of 3.34 falls within the Undervalued range.

7.51

P/FCF

Telecom Argentina SA. (TEO) has a current P/FCF of 7.51. The 5-year average P/FCF is 6.24. The thresholds are as follows: Strongly Undervalued below -32.86, Undervalued between -32.86 and -13.31, Fairly Valued between 25.80 and -13.31, Overvalued between 25.80 and 45.35, and Strongly Overvalued above 45.35. The current Forward P/FCF of 7.51 falls within the Historic Trend Line -Fairly Valued range.

Telecom Argentina SA (TEO) has a current Price-to-Book (P/B) ratio of 4.18. Compared to its 3-year average P/B ratio of 1.91 , the current P/B ratio is approximately 118.91% higher. Relative to its 5-year average P/B ratio of 1.48, the current P/B ratio is about 181.98% higher. Telecom Argentina SA (TEO) has a Forward Free Cash Flow (FCF) yield of approximately 9.27%. Compared to its 3-year average FCF yield of 17.61%, the current FCF yield is approximately -47.36% lower. Relative to its 5-year average FCF yield of 22.08% , the current FCF yield is about -58.00% lower.

4.10

P/B

Median3y

1.91

Median5y

1.48

10.00

FCF Yield

Median3y

17.61

Median5y

22.08

Competitors Valuation Multiple

The average P/S ratio for TEO's competitors is 1.44, providing a benchmark for relative valuation. Telecom Argentina SA Corp (TEO) exhibits a P/S ratio of 0.62, which is -56.86% above the industry average. Given its robust revenue growth of 72.20%, this premium appears sustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Chunghwa Telecom Co Ltd

Frontier Communications Parent Inc

Lumen Technologies Inc

0.38

-5.39%

4.42B

Performance Decomposition

Market capitalization of TEO increased by 35.01% over the past 1 year. The primary factor behind the change was an decrease in P/E Change from -33.40 to -98.66.

The secondary factor is the Revenue Growth, contributed 72.20%to the performance.

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

72.20%

967.28M → 1.67B

Revenue Growth

-232.56%

6.88 → -9.12

Margin Expansion

195.37%

-33.40 → -98.66

P/E Change

35.01%