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Telefónica, S.A (1TEF) Fair Value & Analysis

Communication Services · IT · Market cap €20.1B

TS Telefónica, S.A 1TEF · MI
Price€3.56
Fair Value€1.69
Upside-52.6%
Quality49/100
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Evidence: Medium Range €1.69 – €1.69

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)

€4.51 €3.12 Fair Value €1.69 Jul 2025 Jul 2026

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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Analysis

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

Revenue (TTM) €35.9B
Revenue growth (YoY) -12.4%
Net margin -9.5%
Return on equity -8.9%
Free cash flow €4.7B FY2025
Operating margin 13.3%
More key figures
EPS (TTM) €-0.4200
EPS growth (YoY) +2,660%
Net debt €25.5B FY2025

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.

Revenue −2.8%/yr
FY21 €39.3B
FY22 €40.0B
FY23 €40.7B
FY24 €35.7B
FY25 €35.1B
Net income
FY21 €8.1B
FY22 €2.0B
FY23 −€892M
FY24 −€49.0M
FY25 −€4.3B

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Recent news

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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Frequently asked questions

Is Telefónica, S.A (1TEF) undervalued?
As of Jul 3, 2026, our model estimates a fair value of €1.69 versus a price of €3.56 — about −53% (overvalued). Model-based estimate, not financial advice.
What is the fair value of 1TEF?
Our model-based fair value for Telefónica, S.A is €1.69 (as of Jul 3, 2026), built from audited fundamentals. The current price is €3.56.
What is the quality score of 1TEF?
Telefónica, S.A has a Quality Score of 49/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Telefónica, S.A (1TEF)?
Telefónica, S.A reported trailing-twelve-month revenue of about €35.9B (latest available figure, as of Jul 3, 2026).
What is the net profit margin of 1TEF?
The net profit margin of Telefónica, S.A is about -9.5%, meaning it is currently running at a net loss. Based on the latest reported figures.

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.