Telefónica, S.A (TNE5) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Telefónica, S.A €13.37, price €3.33, upside +301.5%, quality 38 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? Yes
- Good quality? No
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Telefónica, S.A
TNE5 · XETRACheap, value-trap riskThe stock looks deeply undervalued, but low quality raises value-trap risk.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 3, 2026.
How to read this chart
60‑month range €2.39 – €4.51 · fair‑value band €8.28 – €19.11 · the €3.33 price screens below the €13.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 3, 2026.
Company profile
Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America.
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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.
Stock analysis
Telefónica, S.A (TNE5) currently trades at €3.33, while our model-based Fair Value estimate is €13.37, implying the stock looks roughly 75.1% undervalued today.
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Valuation
Bull case: the DCF Models group reads highest at a median of €10.66 per share, and 10 of the 13 models we run sit above the €3.33 price.
Bear case: the Multiples group reads lowest at €1.41, and 3 of the 13 models stay below the price. Evidence for this calculation is medium.
Scenario range: €8.28 (bear) to €19.11 (bull), the price of €3.33 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 38/100 (below-average quality), in the Communication Services sector.
Weak Growth: Revenue is shrinking: the last year, the last three and the last five years are all negative.
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.
Key figures
Market cap €18.8B · P/S ratio 0.55 · EPS (TTM) €−0.4200 · Dividend yield 8.4% · Net margin −12.3% · Return on equity −8.9% · Return on assets (EBIT) 4.6% · Operating margin 13.3%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 47 out of 100 (low confidence).
What moves the price
The share trades about 22% below its 52-week high and 7% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Communication Services peers we cover trades at 36% fair-value upside, at 302%, TNE5 screens cheaper than that median.
Fair Value models
All 13 models by family
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Set up alert →Quality Score breakdown
Of which business quality 36 · Market factors (momentum, volatility) 43
Revenue & earnings trend
Growth Forecast
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Compare Telefónica, S.A with another stock
Price, fair value, quality and upside side by side.
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 · 230 stocks
Valuation Multiplesvs Telecom Services median · lower = cheaper
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
- Undervalued stocks: German Stocks
- Valuation of the Germany market
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.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| China Mobile Limited 80941 | HK$67.30 | HK$114.85 | +71% |
| Verizon Communications Inc VZ | $45.87 | $70.27 | +53% |
| T-Mobile US, Inc TMUS | $162.98 | $272.88 | +67% |
| AT&T Inc T | $24.48 | $51.11 | +109% |
| Bharti Airtel Limited BHARTIARTL | ₹1,741 | ₹1,883 | +8% |
| China Telecom Corporation 601728 | ¥6.16 | ¥8.36 | +36% |
| Saudi Telecom Company 7010 | 43.22 SAR | 41.80 SAR | −3% |
| Singapore Telecommunications Limited Z74 | 4.28 SGD | 2.16 SGD | −50% |
| Swisscom AG SCMN | CHF 639.00 | CHF 505.18 | −21% |
| Telstra Group TLS | A$4.83 | A$4.43 | −8% |
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Key figures of Telefónica, S.A
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