Telefónica, S.A (1TEF) Fair Value & Analysis
Communication Services · IT · Market cap €20.1B
Fair value as of: Jul 3, 2026
From 12 valuation models · updated today
Share price −5.9% over the past month.
Price vs Fair Value (12 months)
12‑month range €3.12 – €4.51 · the €3.56 price screens above the €1.69 fair value. As of Jul 3, 2026.
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Telefónica, S.A (1TEF) currently trades at €3.56, while our model-based Fair Value estimate is €1.69 — implying the stock looks roughly 52.6% overvalued today. We read business quality at 49/100 (below-average quality), in the Communication Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium — the entry price still matters most (evidence: medium).
Over the trailing twelve months, Telefónica, S.A generated revenue of €35.9B at a net margin of -9.5%. Revenue declined 12.4% year over year. It earns a return on equity of -8.9%. Net debt stands at €25.5B. Fundamentals as of Jul 3, 2026
Key figures & financial health
More key figures
Figures from reported company fundamentals (EODHD) · as of Jul 3, 2026. TTM = trailing twelve months.
About the company
Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company offers mobile and related services and products, including mobile voice, value added, mobile data and internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services; traditional fixed telecommunication services, such as PSTN lines; ISDN accesses; public telephone services; local, domestic, and international long-distance and fixed-to-mobile communications; corporate communications; supplementary value-added services; video telephony; intelligent network; telephony information services; and leases and sells handset equipment. It also provides internet provider service; portal and network, retail and wholesale broadband access, narrowband switched access and other technologies, internet through fibre to the home, very high bit-rate digital subscriber line, and voice over internet protocol services; leased line, virtual private …
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Telefónica, S.A reported revenue of €35.1B in FY2025 versus €39.3B in FY2021, a compound −2.8%/yr. Reported net income was −€4.3B in FY2025.
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Recent news
- Virgin Media O2’s £2bn bid to rival BT faces competition investigation
- Competition watchdog to fast-track review into £2bn Netomnia deal
- Redefining Home Connectivity: Telefónica's Commitment to Wi-Fi Excellence -- Enabled by AXON Networks
- Telefónica shares fall due to the ex-dividend effect, discounting €0.15 per share
External third-party headlines (Yahoo Finance, Reuters and others) — not an editorial selection, not financial advice.
Similar stocks
6 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 3, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SoftBank Group SFTBF | $44.85 | $68.21 | +52% |
| China Mobile Limited 0941 | HK$82.40 | HK$80.23 | -3% |
| T-Mobile US, Inc TM5 | €160.66 | €196.22 | +22% |
| Verizon Communications Inc BAC | €40.98 | €35.28 | -14% |
| AT&T Inc SOBA | €21.19 | €21.67 | +2% |
| Deutsche Telekom AG DTE | €28.86 | €34.75 | +20% |
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How we calculate Fair Value
Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data — nothing guessed.
Educational research only · not financial advice · no buy/sell recommendation. Model-based estimates are not certainties; their reliability depends on data quality and assumptions.