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Telecom Italia S.p.A. (TIT) fair value: what the stock is really worth

As of Sep 25, 2026: fair value of Telecom Italia S.p.A. €2.32, price €7.24, upside -68.0%, quality 45 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? No
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Communication Services · IT · ISIN IT0003497168

TI Telecom Italia S.p.A. logo Broad data Sep 25, 2026

Telecom Italia S.p.A.

TIT · MI

Weakest SetupStrongly overvalued and low quality.

!Fair value €2.32 · Strongly overvalued (−68.0%)
!Quality 45/100
!Mixed Growth (revenue YoY +0.6 %/yr)
!Thin margins · 0.9% net margin (TTM)
✓Moderate debt · generates free cash flow
!Trails peers (0/14)
!Narrow moat 27/100
!Weak on future: 7 out of 100
!Weak on past: 12 out of 100

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

€8.14 €1.71 Fair Value €2.32 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 25, 2026.

How to read this chart

60‑month range €1.71 – €8.14 · fair‑value band €1.62 – €2.75 · the €7.24 price screens above the €2.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 25, 2026.

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Company profile

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.

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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.

Stock analysis

Telecom Italia S.p.A. (TIT) currently trades at €7.24, while our model-based Fair Value estimate is €2.32, implying the stock looks roughly 212.1% overvalued today.

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Valuation

Bull case: the Asset-Based group reads highest at a median of €3.85 per share, and 3 of the 21 models we run sit above the €7.24 price.

Bear case: the Earnings-Based group reads lowest at €0.8800, and 18 of the 21 models stay below the price. Evidence for this calculation is high.

Scenario range: €1.62 (bear) to €2.75 (bull), the price of €7.24 sits above 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 45/100 (below-average quality), in the Communication Services sector.

Mixed Growth: Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.

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.

Key figures

Market cap €17.1B · P/E ratio 40.2 · P/S ratio 0.87 · EPS (TTM) €0.1800 · Dividend yield 1.6% · Net margin 2.2% · Return on equity 3.1% · Return on assets (EBIT) 2.6%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 34 out of 100 (medium confidence).

What moves the price

The share trades about 11% below its 52-week high and 66% above its 52-week low, currently above its 200-day average.

For context, the median of 10 Communication Services peers we cover trades at 47% fair-value upside, at −68%, TIT screens richer than that median.

Fair Value models

Bear €1.62 Fair Value €2.32 Bull €2.75
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 (€0.1332 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.
Highest evidence
Residual Income €4.09 €3.91 €3.18 76
FCF DCF €0.8400 €2.18 €4.67 74
Owner Earnings €4.02 €6.62 €11.42 74
All 21 models by family
DCF Models
FCF DCF €0.8400 €2.18 €4.67 74
Owner Earnings €4.02 €6.62 €11.42 74
5Y Revenue Exit €0.8800 €2.54 €4.95 67
5Y EBITDA Exit €7.25 €13.57 €21.94 73
5Y P/E Exit n/a €0.9200 €2.10 68
10Y Revenue Exit €0.7400 €1.97 €3.31 64
10Y EBITDA Exit €4.70 €8.79 €13.28 67
10Y P/E Exit €0.2700 €0.9700 €1.63 60
Earnings-Based
Graham-Dodd €0.9500 €1.16 €1.30 67
EPV €0.3800 €0.8800 €1.31 69
Multiples
P/E Multiple €2.30 €3.07 €3.84 63
P/S Multiple €1.78 €2.37 €2.97 58
P/B Multiple €1.78 €2.37 €2.97 55
EV/EBIT €2.43 €4.11 €5.78 64
EV/EBITDA €13.60 €19.00 €24.40 67
EV/Revenue €1.22 €2.85 €4.48 50
Asset-Based
NCAV (Graham) €2.87 €3.85 €5.74 54
Growth DCF
Growth DCF €1.00 €2.30 €4.54 73
Economic Profit
Residual Income €4.09 €3.91 €3.18 76
ROIC Compounder €0.3800 €0.8800 €1.31 69
Growth Earnings
Growth-Adj P/E €1.62 €2.32 €3.01 67

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Quality Score breakdown

Overall quality 45/100

Of which business quality 43 · Market factors (momentum, volatility) 75

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 76
Calm price path (market factor)
Momentum 68
Price trend over the last 3–12 months (market factor)
52W Momentum 88
Distance to the 52-week high (market factor)
Net Issuance 81
Share count: buybacks or dilution?

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Revenue & earnings trend

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. 55/100
Spin-off in 2024: revenue and profit before it include the divested business. Growth is measured afresh from 2024.
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−39.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year−40.7%
Dividend (yield on the price)1.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−40.7% vs −15.3%, slowing
Profit margin 2020 to 2025 ⓘ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.13% → 7%
Start year 2020 (pandemic)
⚠ Revenue per share shrinking 4.6%/yr over ~10Y (margins eroding too) ⓘStructural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.

TIT screens 212% overvalued. Compare with China Mobile Limited →

Earlier news

News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation. Very negative
Recent news coverage is unusually downbeat.

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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 0/14 measures
Overall it trails its industry peers.
Valuation
Quality Score 45 · Below median
Fair Value upside −68.0% · Bottom 25%
Profitability
Return on equity (TTM) 3.1% · Below median
Return on assets 2.1% · Below median
Net margin (TTM) 0.9% · Below median
Operating margin (TTM) 5.4% · Below median
Growth and dividend
Revenue growth 1.4% · Below median
Dividend yield (TTM) 1.6% · Below median
Balance sheet
Debt / equity 0.62× · Above median

Valuation Multiplesvs Telecom Services median · lower = cheaper

P/E (TTM) 40.2× · Priciest 25%
P/B 1.60× · book value is mostly goodwill ⓘGoodwill and other intangible assets are larger than the equity. The book value mainly reflects prices paid for past acquisitions, so we do not rank this P/B against the peer group.
P/S (TTM) 1.41× · Pricier than median
P/FCF 527.5× · Priciest 25%
EV/EBITDA 6.9× · Pricier than median
PEG 7.50× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 41
FUTURE (revenue growth)7 · sector 19
PAST (return on equity)12 · sector 29
HEALTH (low debt)69 · sector 84
DIVIDEND (yield)32 · sector 72

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

Context: sector, industry, market

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

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
China Mobile Limited 80941 HK$67.55 HK$123.20 +82%
Verizon Communications Inc VZ $47.32 $70.27 +48%
T-Mobile US, Inc TMUS $165.35 $272.88 +65%
AT&T Inc T $25.45 $51.11 +101%
Bharti Airtel Limited BHARTIARTL ₹1,796 ₹1,883 +5%
China Telecom Corporation 601728 ¥6.16 ¥8.36 +36%
América Móvil, S.A. AMX $22.03 $32.31 +47%
Singapore Telecommunications Limited Z74 4.28 SGD 2.16 SGD −50%
Swisscom AG SCMN CHF 657.00 CHF 505.18 −23%
Telstra Group TLS A$4.78 A$4.43 −7%

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

Frequently asked questions

Is Telecom Italia S.p.A. (TIT) overvalued or undervalued?
As of Sep 25, 2026, our model estimates a fair value of €2.32 versus a price of €7.24, about −68% upside (overvalued).
What is the fair value of TIT?
Our model-based fair value for Telecom Italia S.p.A. is €2.32 (as of Sep 25, 2026), built from audited fundamentals. The current price: €7.24.
What is the quality score of TIT?
Telecom Italia S.p.A. has a Quality Score of 45/100. 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 Telecom Italia S.p.A. (TIT)?
Our model-based price target is the fair value of €2.32 (as of Sep 25, 2026) from 21 valuation models. Cautious scenario €1.62, optimistic scenario €2.75. It is a calculation from audited fundamentals, not an analyst target.
What is the Telecom Italia S.p.A. stock forecast for 2026?
Our models put fair value at €2.32, about −68% upside versus a price of €7.24 (overvalued). Cautious scenario €1.62, optimistic scenario €2.75. The calculation is refreshed regularly with new filings.
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 Sep 25, 2026).
Does Telecom Italia S.p.A. pay a dividend?
Telecom Italia S.p.A. currently shows a dividend yield of about 1.59% relative to its recent price (as of Sep 25, 2026).
What is the intrinsic value of Telecom Italia S.p.A. (TIT)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Telecom Italia S.p.A. it is €2.32 per share (as of Sep 25, 2026), against a price of €7.24. It is the blended result of 21 valuation models (cash flow, earnings, asset, dividend).
Is Telecom Italia S.p.A. stock overvalued or undervalued in 2026?
As of Sep 25, 2026, TIT trades above its calculated fair value: price €7.24, fair value €2.32, a gap of about −68% (overvalued). 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 TIT?
No. The price is what the market pays today (€7.24); the fair value is what the company's own numbers justify (€2.32). For Telecom Italia S.p.A. the two are €4.92 per share apart. That gap is exactly why we show both numbers side by side.
How much is Telecom Italia S.p.A. worth?
The market values Telecom Italia S.p.A. at about €17.1B (market capitalisation, as of Sep 25, 2026). Per share that is €7.24; our models calculate a fair value of €2.32 per share.
What do the bullish and bearish scenarios say about TIT?
Our models span a range for Telecom Italia S.p.A.: cautious scenario €1.62, base €2.32, optimistic €2.75 per share (as of Sep 25, 2026, price €7.24). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of TIT?
Telecom Italia S.p.A. trades at a price-to-earnings ratio of 40.2 (as of Sep 25, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of €2.32 is built from several models across several years. Other multiples: PEG 7.5, P/B 1.6, P/S 1.4, EV/EBITDA 6.9.
What is the PEG ratio of TIT?
The PEG ratio of Telecom Italia S.p.A. is 7.50 (P/E divided by earnings growth, as of Sep 25, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Telecom Italia S.p.A. (TIT)?
Balance-sheet figures for Telecom Italia S.p.A. (as of Sep 25, 2026): return on equity 3.1%, debt of 0.62 per unit of equity. They feed the Quality Score of 45/100, which measures business quality independently of the share price.
How far is TIT from its 52-week high?
Telecom Italia S.p.A. trades at €7.24, about 11% below its 52-week high of €8.14 and 66% above the low of €4.37 (as of Sep 25, 2026). Distance from the high says nothing about value: that is what the fair value of €2.32 is for.
Which stocks are comparable to Telecom Italia S.p.A.?
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 Telecom Italia S.p.A. stock attractive at the current price?
The data as of Sep 25, 2026: price €7.24, calculated fair value €2.32 (−68%), Quality Score 45/100, from 21 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 TIT calculated?
We run Telecom Italia S.p.A. through 21 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 €2.32, 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 13.9 % above its aggregate fair value. Telecom Italia S.p.A. itself currently trades above fair value. 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 Telecom Italia S.p.A. (TIT)?
The closing price on Sep 25, 2026 was €7.24. Our model-based fair value is €2.32, about −68% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Telecom Italia S.p.A. right now?
The price sits above even our optimistic bull case (€2.75). The favourable scenario is already priced in. Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.

Key figures of Telecom Italia S.p.A.

How large is the market capitalisation of Telecom Italia S.p.A. (TIT)?
The market capitalisation of Telecom Italia S.p.A. is €17.1B. 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 Telecom Italia S.p.A. (TIT)?
The price-to-sales ratio of Telecom Italia S.p.A. is 0.87 (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 Telecom Italia S.p.A. (TIT)?
Earnings per share at Telecom Italia S.p.A. are €0.1800 (price ÷ EPS = P/E 40.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Telecom Italia S.p.A. (TIT)?
The dividend yield of Telecom Italia S.p.A. is 1.6% (payout 64.2%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Telecom Italia S.p.A. (TIT)?
The net margin of Telecom Italia S.p.A. is 2.2% (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 Telecom Italia S.p.A. (TIT)?
The return on equity (ROE) of Telecom Italia S.p.A. is 3.1% (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 Telecom Italia S.p.A. (TIT)?
On an EBIT basis the return on assets of Telecom Italia S.p.A. is 2.6% (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 Telecom Italia S.p.A. (TIT)?
The operating margin of Telecom Italia S.p.A. is 5.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Telecom Italia S.p.A. (TIT)?
Revenue at Telecom Italia S.p.A. is growing +1.4% versus a year earlier (3y avg −4.5%). 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 Telecom Italia S.p.A. (TIT)?
Earnings per share at Telecom Italia S.p.A. are growing −33.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Telecom Italia S.p.A. (TIT) generate?
The free cash flow of Telecom Italia S.p.A. is €37.0M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Telecom Italia S.p.A. (TIT) carry?
The net debt of Telecom Italia S.p.A. is €8.2B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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