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 0.61 is considered Undervalued compared with the five-year average of 15.13. The fair price of Telecom Argentina SA (TEO) is between 15.01 to 22.62 according to relative valuation methord. Compared to the current price of 9.09 USD , Telecom Argentina SA is Undervalued By 39.45%.
Relative Value
Fair Zone
15.01-22.62
Current Price：9.09
39.45%
Undervalued
15.33
PE
1Y
3Y
5Y
Trailing
Forward
3.74
EV/EBITDA
Telecom Argentina SA. (TEO) has a current EV/EBITDA of 3.74. The 5-year average EV/EBITDA is 5.70. The thresholds are as follows: Strongly Undervalued below 3.16, Undervalued between 3.16 and 4.43, Fairly Valued between 6.97 and 4.43, Overvalued between 6.97 and 8.24, and Strongly Overvalued above 8.24. The current Forward EV/EBITDA of 3.74 falls within the Undervalued range.
11.60
EV/EBIT
Telecom Argentina SA. (TEO) has a current EV/EBIT of 11.60. The 5-year average EV/EBIT is 324.33. The thresholds are as follows: Strongly Undervalued below -2128.90, Undervalued between -2128.90 and -902.29, Fairly Valued between 1550.95 and -902.29, Overvalued between 1550.95 and 2777.57, and Strongly Overvalued above 2777.57. The current Forward EV/EBIT of 11.60 falls within the Historic Trend Line -Fairly Valued range.
0.61
PS
Telecom Argentina SA. (TEO) has a current PS of 0.61. The 5-year average PS is 1.18. The thresholds are as follows: Strongly Undervalued below 0.54, Undervalued between 0.54 and 0.86, Fairly Valued between 1.50 and 0.86, Overvalued between 1.50 and 1.82, and Strongly Overvalued above 1.82. The current Forward PS of 0.61 falls within the Undervalued range.
2.96
P/OCF
Telecom Argentina SA. (TEO) has a current P/OCF of 2.96. The 5-year average P/OCF is 4.99. The thresholds are as follows: Strongly Undervalued below 2.37, Undervalued between 2.37 and 3.68, Fairly Valued between 6.30 and 3.68, Overvalued between 6.30 and 7.61, and Strongly Overvalued above 7.61. The current Forward P/OCF of 2.96 falls within the Undervalued range.
7.28
P/FCF
Telecom Argentina SA. (TEO) has a current P/FCF of 7.28. The 5-year average P/FCF is 6.44. The thresholds are as follows: Strongly Undervalued below -32.94, Undervalued between -32.94 and -13.25, Fairly Valued between 26.14 and -13.25, Overvalued between 26.14 and 45.83, and Strongly Overvalued above 45.83. The current Forward P/FCF of 7.28 falls within the Historic Trend Line -Fairly Valued range.
Telecom Argentina SA (TEO) has a current Price-to-Book (P/B) ratio of 4.43. Compared to its 3-year average P/B ratio of 1.86 , the current P/B ratio is approximately 138.99% higher. Relative to its 5-year average P/B ratio of 1.45, the current P/B ratio is about 205.01% higher. Telecom Argentina SA (TEO) has a Forward Free Cash Flow (FCF) yield of approximately 7.61%. Compared to its 3-year average FCF yield of 17.80%, the current FCF yield is approximately -57.26% lower. Relative to its 5-year average FCF yield of 22.09% , the current FCF yield is about -65.55% lower.
4.43
P/B
Median3y
1.86
Median5y
1.45
7.61
FCF Yield
Median3y
17.80
Median5y
22.09
Competitors Valuation Multiple
The average P/S ratio for TEO's competitors is 1.39, providing a benchmark for relative valuation. Telecom Argentina SA Corp (TEO) exhibits a P/S ratio of 0.61, which is -55.99% above the industry average. Given its robust revenue growth of -44.25%, 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 TEO increased by 30.42% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 170.57 to 501.67.
The secondary factor is the Revenue Growth, contributed -44.25%to the performance.
Overall, the performance of TEO in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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