Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3) fair value: what the stock is really worth
As of Oct 6, 2026: fair value of Telecomunicações Brasileiras S.A. - TELEBRÁS BRL 38.63, price BRL 22.15, upside +74.4%, quality 50 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 2, 2026.
How to read this chart
60‑month range R$9.89 – R$115.00 · fair‑value band R$26.33 – R$57.85 · the R$22.15 price screens below the R$38.63 fair value. Dashed = 300-day average. As of Oct 2, 2026.
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Telecomunicações Brasileiras S.A. - Telebras provides multimedia communication services.
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Telecomunicações Brasileiras S.A. - Telebras provides multimedia communication services. It provides support services for internet connection for universities, research centers, schools, hospitals, service points, community telecenters, regional offices, and others; infrastructure and support networks for telecommunications services; and broadband internet connection services for end users, as well as implements private communication networks. The company is also involved in the leasing of satellite capacity; and rental of optical cables, routers, and infrastructure for satellites. Telecomunicações Brasileiras S.A. - Telebras was incorporated in 1972 and is headquartered in Brasília, Brazil.
Stock analysis
Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3) currently trades at R$22.15, while our model-based Fair Value estimate is R$38.63, implying the stock looks roughly 42.7% undervalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of R$64.01 per share, and 20 of the 24 models we run sit above the R$22.15 price.
Bear case: the Asset-Based group reads lowest at R$11.51, and 4 of the 24 models stay below the price. Evidence for this calculation is medium.
Scenario range: R$26.33 (bear) to R$57.85 (bull), the price of R$22.15 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 50/100 (below-average quality), in the Communication Services sector.
Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.
Telecomunicações Brasileiras S.A. - TELEBRÁS reported revenue of R$491M in FY2025 versus R$286M in FY2021, a compound +14.5%/yr. Reported net income was R$141M in FY2025.
Key figures
Market cap R$2.3B (≈ $454M) · P/E ratio 12.2 · P/S ratio 3.48 · EPS (TTM) R$1.59 · Net margin 28.6% · Return on equity 8.5% · Return on assets (EBIT) 0.1% · Operating margin 32.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 2% below its 52-week high and 124% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 36% fair-value upside, at 74%, TELB3 screens cheaper than that median.
Fair Value models
Bear R$26.33Fair Value R$38.63Bull R$57.85
Price R$22.15 · Upside +74.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then (R$1.22 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.65/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+18.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+12.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+13.0%
Start year 2020 (pandemic). Over 10 years: +27.0% a year
Revenue growth 27 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+24.9%
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Profit margin (trend) ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.
−27.0% (2020) → 45.8% (2025)
What shareholders gained per year ⓘWe only publish this rate when it is defensible. Reason: no profitable base year
not computed
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+23.2%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (Brazil: IMF forecast 3.3% a year to 2030, 5.4% from 2016 to 2025) that is about +19.3% a year for the price.
Compare Telecomunicações Brasileiras S.A. - TELEBRÁS with another stock
Price, fair value, quality and upside side by side.
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Peer Groupⓘ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.Telecom Services · 240 stocks
Beats the industry median on 9/12 measures
Overall it ranks above its industry peers.
Valuation
Quality Score50 · Below median
Fair Value upside+71.7% · Top 25%
Profitability
Return on equity (TTM)8.5% · Above median
Return on assets3.5% · Above median
Net margin (TTM)25.3% · Top 25%
Operating margin (TTM)32.3% · Top 25%
Growth and dividend
Revenue growth30.4% · Top 25%
Valuation Multiplesvs Telecom Services median · lower = cheaper
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Is Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3) overvalued or undervalued?
As of Oct 2, 2026, our model estimates a fair value of R$38.63 versus a price of R$22.15, about +74% upside (undervalued).
What is the fair value of TELB3?
Our model-based fair value for Telecomunicações Brasileiras S.A. - TELEBRÁS is R$38.63 (as of Oct 2, 2026), built from audited fundamentals. The current price: R$22.15.
What is the quality score of TELB3?
Telecomunicações Brasileiras S.A. - TELEBRÁS has a Quality Score of 50/100. 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 price target for Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
Our model-based price target is the fair value of R$38.63 (as of Oct 2, 2026) from 24 valuation models. Cautious scenario R$26.33, optimistic scenario R$57.85. It is a calculation from audited fundamentals, not an analyst target.
What is the Telecomunicações Brasileiras S.A. - TELEBRÁS stock forecast for 2026?
Our models put fair value at R$38.63, about +74% upside versus a price of R$22.15 (undervalued). Cautious scenario R$26.33, optimistic scenario R$57.85. The calculation is refreshed regularly with new filings.
What is the revenue of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
Telecomunicações Brasileiras S.A. - TELEBRÁS reported trailing-twelve-month revenue of about R$545M (latest available figure, as of Oct 2, 2026).
What growth is priced into Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
For today's price to be fair in a discounted-cash-flow model, Telecomunicações Brasileiras S.A. - TELEBRÁS would have to grow free cash flow by +23.2 % per year for five years (discount rate 12.7 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +13.0 % per year. As of Oct 2, 2026.
What discount rate (WACC) does the fair value of TELB3 use?
Our models discount Telecomunicações Brasileiras S.A. - TELEBRÁS at 12.7 %: a base by market capitalisation (small), damped by beta 0.16, country premium for Brazil. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Telecomunicações Brasileiras S.A. - TELEBRÁS that is +23.2 % per year a year over ten years, using the same discount rate (12.7 %) and the same formula as our fair value.
How much growth has Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3) delivered so far?
Over the past 5 years revenue at Telecomunicações Brasileiras S.A. - TELEBRÁS grew +13.0 % a year. The price currently implies +23.2 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3) growing?
The median revenue growth in the sector is +3.4 % a year. That is the yardstick for the growth priced into Telecomunicações Brasileiras S.A. - TELEBRÁS (+23.2 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
The free-cash-flow yield on the price is 1.18 %: that much free cash flow Telecomunicações Brasileiras S.A. - TELEBRÁS produces per unit of market value. When it exceeds the discount rate of our models (12.7 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Telecomunicações Brasileiras S.A. - TELEBRÁS it is R$38.63 per share (as of Oct 2, 2026), against a price of R$22.15. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Telecomunicações Brasileiras S.A. - TELEBRÁS stock overvalued or undervalued in 2026?
As of Oct 2, 2026, TELB3 trades below its calculated fair value: price R$22.15, fair value R$38.63, a gap of about +74% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of TELB3?
No. The price is what the market pays today (R$22.15); the fair value is what the company's own numbers justify (R$38.63). For Telecomunicações Brasileiras S.A. - TELEBRÁS the two are R$16.48 per share apart. That gap is exactly why we show both numbers side by side.
How much is Telecomunicações Brasileiras S.A. - TELEBRÁS worth?
The market values Telecomunicações Brasileiras S.A. - TELEBRÁS at about R$2.3B (market capitalisation, as of Oct 2, 2026). Per share that is R$22.15; our models calculate a fair value of R$38.63 per share.
What do the bullish and bearish scenarios say about TELB3?
Our models span a range for Telecomunicações Brasileiras S.A. - TELEBRÁS: cautious scenario R$26.33, base R$38.63, optimistic R$57.85 per share (as of Oct 2, 2026, price R$22.15). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TELB3?
Telecomunicações Brasileiras S.A. - TELEBRÁS trades at a price-to-earnings ratio of 12.2 (as of Oct 2, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of R$38.63 is built from several models across several years. Other multiples: P/B 1.3, P/S 4.2, EV/EBITDA 3.3.
How solid is the balance sheet of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
Balance-sheet figures for Telecomunicações Brasileiras S.A. - TELEBRÁS (as of Oct 2, 2026): return on equity 8.5%. They feed the Quality Score of 50/100, which measures business quality independently of the share price.
How far is TELB3 from its 52-week high?
Telecomunicações Brasileiras S.A. - TELEBRÁS trades at R$22.15, about 2% below its 52-week high of R$22.50 and 124% above the low of R$9.89 (as of Oct 6, 2026). Distance from the high says nothing about value: that is what the fair value of R$38.63 is for.
Which stocks are comparable to Telecomunicações Brasileiras S.A. - TELEBRÁS?
From the same area (Communication Services) we also value China Mobile Limited, Verizon Communications Inc, T-Mobile US, Inc, AT&T Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Telecomunicações Brasileiras S.A. - TELEBRÁS stock attractive at the current price?
The data as of Oct 2, 2026: price R$22.15, calculated fair value R$38.63 (+74%), Quality Score 50/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of TELB3 calculated?
We run Telecomunicações Brasileiras S.A. - TELEBRÁS through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of R$38.63, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.4 % above its aggregate fair value. Telecomunicações Brasileiras S.A. - TELEBRÁS currently trades 43 % below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
The closing price on Oct 6, 2026 was R$22.15. Our model-based fair value is R$38.63, about +74% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Telecomunicações Brasileiras S.A. - TELEBRÁS right now?
The price is below even our cautious bear case (R$26.33). The market is more pessimistic than our downside scenario. Solid quality (50/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range (R$26.33 to R$57.85) leaves room in how you read the outcome.
Key figures of Telecomunicações Brasileiras S.A. - TELEBRÁS
How large is the market capitalisation of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
The market capitalisation of Telecomunicações Brasileiras S.A. - TELEBRÁS is R$2.3B (≈ $454M). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
The price-to-sales ratio of Telecomunicações Brasileiras S.A. - TELEBRÁS is 3.48 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
Earnings per share at Telecomunicações Brasileiras S.A. - TELEBRÁS are R$1.59 (price ÷ EPS = P/E 12.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
The net margin of Telecomunicações Brasileiras S.A. - TELEBRÁS is 28.6% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
The return on equity (ROE) of Telecomunicações Brasileiras S.A. - TELEBRÁS is 8.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
On an EBIT basis the return on assets of Telecomunicações Brasileiras S.A. - TELEBRÁS is 0.1% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
The operating margin of Telecomunicações Brasileiras S.A. - TELEBRÁS is 32.3% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
Revenue at Telecomunicações Brasileiras S.A. - TELEBRÁS is growing +30.4% versus a year earlier (3y avg +12.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3)?
Earnings per share at Telecomunicações Brasileiras S.A. - TELEBRÁS are growing +38.9% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net cash does Telecomunicações Brasileiras S.A. - TELEBRÁS (TELB3) hold?
Telecomunicações Brasileiras S.A. - TELEBRÁS holds more cash than debt, R$679M net (fiscal year 2025). The company holds more cash than debt, a safety cushion.
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