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1&1 AG (1U1) Fair Value & Analysis

Communication Services · DE · Market cap €3.6B

11 1&1 AG 1U1 · XETRA
Price€20.00
Fair Value€20.10
Upside+0.5%
Quality42/100
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Weak Growth
Thin margins · 3.2% net margin
generates free cash flow
0.25% dividend yield
Trails peers (3/14)
Narrow moat 31/100
Evidence: High Range €14.07 – €20.32 Share as image

Fair value as of: Jul 16, 2026

From 26 valuation models · updated 24 days ago

Share price +1.2% over the past month.

Below-average quality, currently priced close to our fair value.

What matters now

  • The price sits close to our fair value, market and models broadly agree here, little valuation tension.
  • Our model range runs from €14.07 (bear) to €20.32 (bull), base €20.10. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 42/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

€27.21 €9.38 Fair Value €20.10 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range €9.38 – €27.21 · fair‑value band €14.07 – €20.32 · the €20.00 price screens below the €20.10 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

1&1 AG (1U1) currently trades at €20.00, while our model-based Fair Value estimate is €20.10, implying the stock looks roughly 0.5% fairly valued today. The Quality Score stands at 42/100 (below-average quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, 1&1 AG generated revenue of €4.3B at a net margin of 3.2%. Revenue grew 12.5% year over year. It earns a return on equity of 2.2%. Net debt stands at €1.1B. Fundamentals as of Jul 16, 2026

Our scenario range runs from €14.07 (bear case) to €20.32 (bull case); at €20.00, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 27% below its 52-week high and 10% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at 1%, 1U1 screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income €23.92 €22.69 €18.25 76
Growth DCF €11.89 €21.18 €36.72 72
Gordon GGM €0.4400 €0.8700 €1.32 70
All 26 models by family
DCF Models
FCF DCF €12.13 €22.76 €41.52 38
Owner Earnings €6.19 €11.60 €21.15 31
5Y Revenue Exit €9.68 €17.08 €27.28 39
5Y EBITDA Exit €19.86 €38.89 €63.73 41
5Y P/E Exit €13.74 €25.77 €40.01 38
10Y Revenue Exit €10.11 €17.47 €29.14 36
10Y EBITDA Exit €17.11 €33.44 €60.11 37
10Y P/E Exit €13.08 €23.83 €39.95 35
Earnings-Based
Graham-Dodd €6.38 €33.65 €46.58 54
Lynch FV €9.25 €13.22 €17.18 50
PEG = 1.0 €9.25 €13.22 €17.18 46
EPV €7.66 €8.87 €9.90 59
Dividend Discount
Gordon GGM €0.4400 €0.8700 €1.32 70
DDM Multi-Stage €0.4400 €0.7600 €0.9200 61
Multiples
P/E Multiple €15.49 €20.65 €25.82 63
P/S Multiple €11.97 €15.96 €19.95 58
P/B Multiple €11.97 €15.96 €19.95 55
EV/EBIT €11.22 €14.94 €18.67 53
EV/EBITDA €25.22 €33.61 €42.00 54
EV/Revenue €8.52 €12.15 €15.78 43
Asset-Based
NCAV (Graham) €16.98 €22.76 €33.97 50
Growth DCF
Growth DCF €11.89 €21.18 €36.72 72
Rev-Margin DCF €9.68 €16.88 €26.58 67
Economic Profit
Residual Income €23.92 €22.69 €18.25 76
ROIC Compounder €7.66 €8.87 €9.90 67
Growth Earnings
Growth-Adj P/E €14.07 €20.10 €26.14 68

Widest divergence: DCF Models (€22.76) versus Dividend Discount (€0.7600). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) €4.3B
Revenue growth (YoY) +12.5%
Net margin 3.2%
Return on equity 2.2%
Free cash flow €166M FY2025
P/E ratio 26.6
More key figures
Operating margin 5.0%
EPS (TTM) €0.7600
Dividend yield 0.3%
EPS growth (YoY) -62.6%
Net debt €1.1B FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 42/100

Of which business quality 43 · Market factors (momentum, volatility) 44

Profitability 22
Margins and returns on capital today
Quality Growth 16
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 50
Balance sheet, leverage, solvency risk
Investment 56
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 28
Price trend over the last 3–12 months (market factor)
52W Momentum 30
Distance to the 52-week high (market factor)
Net Issuance 79
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

1&1 AG, together with its subsidiaries, operates as a telecommunications provider in Germany. It operates through three segments: Access; 1&1 Mobile Network; and 1&1 Versatel.

Full company description

1&1 AG, together with its subsidiaries, operates as a telecommunications provider in Germany. It operates through three segments: Access; 1&1 Mobile Network; and 1&1 Versatel. The company offers mobile internet, broadband products, and related applications, such as home networks, online storage, telephony, and smart home or international protocol television for residential customers and small and medium sized enterprises. It also owns and operates mobile network based on OPEN RAN technology; and the sale of telecommunication devices and accessories. In addition, the company provides fibre-optic networks comprising direct fibre connection to bespoke; and individual ICT solutions, such as voice, data, and network solutions. The company provides its products and services under the 1&1, WinSIM, Sim.de, yourfone, smartmobil.de, simply, PremiumSIM, and DeutschlandSIM brands. The company was founded in 1988 and is headquartered in Montabaur, Germany. 1&1 AG is a subsidiary of United Internet AG.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

1&1 AG reported revenue of €4.1B in FY2025 versus €3.9B in FY2021, a compound +1.4%/yr. Reported net income was €166M in FY2025, compounding −18.2%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€4.1B
Latest YoY
+1.8%
Avg. growth/yr (3Y)
+1.4%
Avg. growth/yr (5Y)
+1.8%
Avg. growth/yr (23Y)
+15.7%
Revenue +1.4%/yr
FY21 €3.9B
FY22 €4.0B
FY23 €4.1B
FY24 €4.1B
FY25 €4.1B
Net income −18.2%/yr
FY21 €370M
FY22 €367M
FY23 €315M
FY24 €213M
FY25 €166M

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Cite: Fair Value Calculator (2026). "1&1 AG Fair Value". https://www.fairvalue-calculator.com/stock/1U1

Peer Group

Telecom Services · 252 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 42 · Bottom 25%
Fair Value upside +1% · Above median
Return on equity (TTM) 2% · Below median
Return on assets 1% · Below median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth 13% · Top 25%
Dividend yield (TTM) 0.3% · Bottom 25%

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 26.6× · Pricier than median
P/B 0.69× · Cheaper than 75% of peers
P/S (TTM) 0.97× · Pricier than median
P/FCF 25.0× · Pricier than 75% of peers
EV/EBITDA 9.3× · Pricier than median
PEG 2.49× · Pricier than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 34 · sector 30
FUTURE 63 · sector 15
PAST 9 · sector 28
HEALTH 0 · sector 89
DIVIDEND 5 · sector 72

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is 1&1 AG (1U1) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of €20.10 versus a price of €20.00, about +1% (fairly valued).
What is the fair value of 1U1?
Our model-based fair value for 1&1 AG is €20.10 (as of Jul 16, 2026), built from audited fundamentals. The current price is €20.00.
What is the quality score of 1U1?
1&1 AG has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of 1&1 AG (1U1)?
1&1 AG reported trailing-twelve-month revenue of about €4.3B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of 1U1?
The net profit margin of 1&1 AG is about 3.2%, meaning it keeps roughly 3.2% of revenue as net income. Based on the latest reported figures.
Does 1&1 AG pay a dividend?
1&1 AG currently shows a dividend yield of about 0.22% relative to its recent price (as of Jul 16, 2026).

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.

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