Telefónica, S.A (TEFOF) Fair Value & Analysis
Communication Services · US · Market cap $23.7B
Telefónica, S.A
TEFOF · US
Fair value as of: Jul 18, 2026
From 15 valuation models · updated 13 days ago
Fair value updated Jul 18, 2026, revised from $10.05 to $11.43 (+13.7%) since Jun 24, 2026. Share price +0.5% over the past month.
What matters now
- The large discount to fair value meets weak quality (40/100). That raises the risk this is a value trap rather than a bargain.
- The price is below even our cautious bear case ($6.91). The market is more pessimistic than our downside scenario.
Price vs Fair Value (12 months)
12‑month range $3.16 – $5.15 · fair‑value band $6.91 – $11.43 · the $4.19 price screens below the $11.43 fair value. As of Jul 18, 2026.
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Telefónica, S.A (TEFOF) currently trades at $4.19, while our model-based Fair Value estimate is $11.43, implying the stock looks roughly 172.8% undervalued today. We read business quality at 40/100 (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: medium), always confirm before acting.
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 $33.1B. Fundamentals as of Jul 18, 2026
Our scenario range runs from $6.91 (bear case) to $11.43 (bull case); at $4.19, the current price sits below that range. The share trades about 20% below its 52-week high and 23% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 16% fair-value upside, at 173%, TEFOF screens cheaper than that median.
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Jul 18, 2026. TTM = trailing twelve months.
Quality Score breakdown
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
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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External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.
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.
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 18, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| SoftBank Group SFTBF | $44.85 | $68.21 | +52% |
| China Mobile Limited 0941 | HK$82.45 | HK$81.51 | -1% |
| T-Mobile US, Inc T1MU34 | R$463.44 | R$95.81 | -79% |
| Verizon Communications Inc VZ | C$19.28 | C$18.26 | -5% |
| AT&T Inc ATTB34 | R$38.05 | R$12.51 | -67% |
| Bharti Airtel Limited BHARTIARTL | ₹1,798 | ₹1,260 | -30% |
| Comcast Corporation CMCS34 | R$24.68 | R$70.53 | +186% |
| China Telecom Corporation 601728 | ¥6.11 | ¥7.10 | +16% |
| América Móvil, S.A. AMXB | 22.06 MXN | 30.33 MXN | +37% |
| Saudi Telecom Company 7010 | 43.14 SAR | 50.52 SAR | +17% |
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Frequently asked questions
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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.
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