Telefónica S.A (TEFN) fair value: what the stock is really worth
We calculate from audited financials what Telefónica S.A is really worth. The fair value tells you whether the price is too high or too low, the quality score (0 to 100) how solid the business behind it is. 26 models, 37 quality factors, updated daily, free.
- Compare price with fair valuebelow fair value = cheap, above = expensive
- Check the quality50 and up solid, 75 and up strong
- Watch it or check another stockalert when fair value or trend changes
At a glance
Below-average quality, trading 31% below our fair value of 108.96 MXN.
As of Aug 13, 2026, the fair value of Telefónica S.A is 108.96 MXN per share against a price of 75.67 MXN, so the fair value sits 44% above the price. A model estimate from reported figures, not an analyst target.
Fair value as of: Aug 13, 2026
From 13 valuation models · updated 24 days ago
Fair value updated Aug 13, 2026, revised from 111.01 MXN to 108.96 MXN (−1.8%) since Jul 20, 2026. Share price +0.2% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price is below even our cautious bear case (80.47 MXN). The market is more pessimistic than our downside scenario.
- Solid quality (46/100) at a price below fair value, the discount is the argument here, not the business quality.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.
How to read this chart
60‑month range 49.70 MXN – 93.65 MXN · fair‑value band 80.47 MXN – 137.33 MXN · the 75.67 MXN price screens below the 108.96 MXN fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.
Analysis
Telefónica S.A (TEFN) currently trades at 75.67 MXN, while our model-based Fair Value estimate is 108.96 MXN, implying the stock looks roughly 30.6% undervalued today. The Quality Score stands at 46/100 (below-average quality), in the Communication Services sector. Bull case: the DCF Models group reads highest at a median of 459.31 MXN per share, and 12 of the 13 models we run sit above the 75.67 MXN price. Bear case: the Asset-Based group reads lowest at 94.43 MXN, and 1 of the 13 models stay below the price. Evidence for this calculation is medium.
Over the trailing twelve months, Telefónica S.A generated revenue of 35.9B MXN 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 MXN. Fundamentals as of Aug 13, 2026
Scenario range: 80.47 MXN (bear) to 137.33 MXN (bull), the price of 75.67 MXN sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target. The share trades about 21% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 29% fair-value upside, at 44%, TEFN screens cheaper than that median.
Fair Value models
Each model values the company its own way; the fair value above is the evidence-weighted blend. Evidence (0 to 100) shows how complete a model's inputs are. How we calculate →
All 13 models by family
Widest divergence: DCF Models (459.31 MXN) versus Asset-Based (94.43 MXN). Highest evidence: FCF DCF (77).
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Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 46 · Market factors (momentum, volatility) 48
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.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
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 …
Full company description
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 network, fibre optics, web and managed hosting, content delivery and application, security, and outsourcing and consultancy services, including network management or CGP; and desktop, system integration, and professional services. In addition, the company offers wholesale services for telecommunication operators, such as domestic interconnection and international wholesale services; leased lines for other operators; and local loop leasing services, as well as bit stream services, wholesale line rental accesses, and leased ducts for other operators' fiber deployment. Further, it provides video/TV services; smart connectivity and services; financial and other payment, cloud, security, advertising, and big data services; digital products; Aura, an artificial-intelligence ecosystem; Movistar Home device; open gateway; living apps; smart Wi-Fi; NT; Solar 360; and Phoenix, a digital sales platform. Telefónica, S.A. was incorporated in 1924 and is headquartered in Madrid, Spain.
Company description, as reported by the company or data provider.
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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Peer Group
Telecom Services · 250 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.
Valuation Multiples vs Telecom Services median · lower = cheaper
What the price implies (reverse DCF)
The inverse question: what free-cash-flow growth must Telefónica S.A deliver for ten years so that today's price is fair in our DCF model? Same formula, same discount rate as the fair value.
The price demands an acceleration versus past growth: a high bar the company still has to clear. Ranking of the largest stocks →
Context: sector, industry, market
- Is the Communication Services sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: Communication Services
Strength profile in five axes (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.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| China Mobile Limited 600941 | ¥96.11 | ¥109.88 | +14% |
| T-Mobile US, Inc TMUS | $181.52 | $172.67 | −5% |
| Verizon Communications Inc VZ | $50.14 | $64.43 | +29% |
| AT&T Inc T | $26.01 | $43.97 | +69% |
| Bharti Airtel Limited BHARTIARTL | ₹1,935 | ₹941.48 | −51% |
| Comcast Corporation CMCSA | $26.49 | $95.42 | +260% |
| China Telecom Corporation 601728 | ¥6.43 | ¥8.36 | +30% |
| América Móvil, S.A. AMX | $23.00 | $39.79 | +73% |
| Singapore Telecommunications Limited Z77 | 4.53 SGD | 3.03 SGD | −33% |
| Swisscom AG SCMN | CHF 627.50 | CHF 463.92 | −26% |
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Frequently asked questions
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