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Telecom Italia S.p.A (TIT) Fair Value & Analysis

Communication Services · IT · Market cap €17.1B

TI Telecom Italia S.p.A TIT · MI
Price€7.61
Fair Value€2.85
Upside-62.5%
Quality57/100
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Mixed Growth
Thin margins · 0.9% net margin
Moderate debt · generates free cash flow
Trails peers (1/14)
Narrow moat 27/100
Evidence: High Range €1.78 – €3.64 Share as image

Fair value as of: Jul 21, 2026

From 18 valuation models · updated 17 days ago

Fair value updated Jul 21, 2026, revised from €3.07 to €2.85 (−7.2%) since Jun 24, 2026. Share price −4.9% over the past month.

A solid business, but screening 63% overvalued on our models.

What matters now

  • The price sits above even our optimistic bull case (€3.64). The favourable scenario is already priced in.
  • Solid but not exceptional quality (57/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (€1.78 to €3.64) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

€8.14 €1.71 Fair Value €2.85 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 21, 2026.

How to read this chart

60‑month range €1.71 – €8.14 · fair‑value band €1.78 – €3.64 · the €7.61 price screens above the €2.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 21, 2026.

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Analysis

Telecom Italia S.p.A (TIT) currently trades at €7.61, while our model-based Fair Value estimate is €2.85, implying the stock looks roughly 62.5% overvalued today. We read business quality at 57/100 (solid 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: high).

Over the trailing twelve months, Telecom Italia S.p.A generated revenue of €13.9B at a net margin of 0.9%. Revenue grew 1.4% year over year. It earns a return on equity of 3.1%. Net debt stands at €8.2B. Fundamentals as of Jul 21, 2026

Our scenario range runs from €1.78 (bear case) to €3.64 (bull case); at €7.61, the current price sits above 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 6% below its 52-week high and 96% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at -63%, TIT 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 €4.09 €3.91 €3.18 76
ROIC Compounder €0.3800 €0.8800 €1.31 72
Growth-Adj P/E €1.48 €2.12 €2.75 68
All 18 models by family
DCF Models
Owner Earnings €0.7700 €2.08 €4.52 31
5Y Revenue Exit €1.20 €3.50 39
5Y EBITDA Exit €6.71 €13.46 €22.40 41
5Y P/E Exit €0.3500 38
10Y Revenue Exit €1.06 36
10Y EBITDA Exit €3.12 €7.40 €12.15 37
Earnings-Based
Graham-Dodd €0.9500 €1.16 €1.30 54
EPV €0.3800 €0.8800 €1.31 59
Multiples
P/E Multiple €2.09 €2.79 €3.49 63
P/S Multiple €1.78 €2.37 €2.97 58
P/B Multiple €1.78 €2.37 €2.97 55
EV/EBIT €3.06 €4.94 €6.82 53
EV/EBITDA €14.95 €20.80 €26.64 54
EV/Revenue €1.22 €2.85 €4.48 43
Asset-Based
NCAV (Graham) €2.87 €3.85 €5.74 50
Economic Profit
Residual Income €4.09 €3.91 €3.18 76
ROIC Compounder €0.3800 €0.8800 €1.31 72
Growth Earnings
Growth-Adj P/E €1.48 €2.12 €2.75 68

Widest divergence: Asset-Based (€3.85) versus Earnings-Based (€0.8800). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) €13.9B
Revenue growth (YoY) +1.4%
Net margin 0.9%
Return on equity 3.1%
Free cash flow €37.0M FY2025
P/E ratio 44.7
More key figures
Operating margin 5.4%
EPS (TTM) €0.1800
EPS growth (YoY) -33.5%
Net debt €8.2B FY2025

Figures from reported company fundamentals · as of Jul 21, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 43 · Market factors (momentum, volatility) 83

Profitability 22
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 74
Calm price path (market factor)
Momentum 83
Price trend over the last 3–12 months (market factor)
52W Momentum 95
Distance to the 52-week high (market factor)
Net Issuance 81
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

Telecom Italia S.p.A., together with its subsidiaries, engages in the fixed and mobile telecommunications services and products for individuals, households, and supports small and medium-sized enterprises in Italy and internationally. It operates through Domestic, Brazil, and Other Operations segments.

Full company description

Telecom Italia S.p.A., together with its subsidiaries, engages in the fixed and mobile telecommunications services and products for individuals, households, and supports small and medium-sized enterprises in Italy and internationally. It operates through Domestic, Brazil, and Other Operations segments. The company offers telephone and internet services, as well as products managed and developed in landline and mobile for individuals and families; voice, data, and internet services and products; and information and communications technology solutions for top, public sector and large account customers. It also provides connectivity services; mobile phone services and fiber optic data transmission using IP technology and residential broadband services; and internet of things services. Telecom Italia S.p.A. was incorporated in 1908 and is headquartered in Rome, Italy.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Telecom Italia S.p.A reported revenue of €13.7B in FY2025 versus €15.3B in FY2021, a compound −2.7%/yr. Reported net income was €297M in FY2025.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€13.7B
Latest YoY
+0.6%
Avg. growth/yr (3Y)
−4.5%
Avg. growth/yr (5Y)
−2.8%
Avg. growth/yr (27Y)
−2.3%
Revenue −2.7%/yr
FY21 €15.3B
FY22 €15.8B
FY23 €16.3B
FY24 €13.7B
FY25 €13.7B
Net income
FY21 −€8.4B
FY22 −€2.7B
FY23 −€1.4B
FY24 −€610M
FY25 €297M

TIT screens 63% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "Telecom Italia S.p.A Fair Value". https://www.fairvalue-calculator.com/stock/TIT

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

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 57 · Above median
Fair Value upside −63% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth 1% · Below median
Debt / equity 0.62× · Higher than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 44.7× · Pricier than 75% of peers
P/B 1.62× · Pricier than median
P/S (TTM) 1.42× · Pricier than median
P/FCF 533.5× · Pricier than 75% of peers
EV/EBITDA 6.9× · Pricier than median
PEG 7.50× · 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 0 · sector 29
FUTURE 7 · sector 15
PAST 12 · sector 28
HEALTH 69 · sector 89
DIVIDEND 0 · sector 73

VALUE 0: the price sits above our fair-value range.

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 21, 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 Telecom Italia S.p.A (TIT) overvalued or undervalued?
As of Jul 21, 2026, our model estimates a fair value of €2.85 versus a price of €7.61, about −63% (overvalued).
What is the fair value of TIT?
Our model-based fair value for Telecom Italia S.p.A is €2.85 (as of Jul 21, 2026), built from audited fundamentals. The current price is €7.61.
What is the quality score of TIT?
Telecom Italia S.p.A has a Quality Score of 57/100. It combines two groups: business quality (profitability, growth, cash flow, balance-sheet strength) and market factors (price momentum, distance to the 52-week high, volatility). Both subtotals are shown separately in the detail view.
What is the revenue of Telecom Italia S.p.A (TIT)?
Telecom Italia S.p.A reported trailing-twelve-month revenue of about €13.9B (latest available figure, as of Jul 21, 2026).
What is the net profit margin of TIT?
The net profit margin of Telecom Italia S.p.A is about 0.9%, meaning it keeps roughly 0.9% of revenue as net income. 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.

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