Telefónica, S.A. (TEF.MC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+347.8%

€15.27

vs €3.41 price

Levered DCF

€12.65

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

0.8

Distress zone

Rating

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	-4.31×	-69.86×	-17.65×	10.94×	2.79×	13.54×	18.88×	11.29×
P/B	1.38×	1.15×	1.4×	0.78×	0.99×	1.58×	1.86×	2.1×
P/S	0.56×	0.54×	0.49×	0.49×	0.56×	0.41×	0.66×	0.77×
EV / EBITDA	5.97×	4.79×	5.53×	1.41×	2.83×	4.56×	2.11×	5.82×
Gross margin	7.4%	69.6%	49.8%	67.6%	68.8%	69.8%	71.8%	71.2%
Operating margin	4.2%	5.8%	6.4%	10.1%	34.6%	13.9%	5.7%	13.4%
Net margin	-12.3%	-0.1%	-2.2%	5.0%	20.7%	3.7%	3.4%	6.8%
Current ratio	0.89×	0.87×	0.89×	0.98×	0.98×	1.2×	0.81×	0.79×
Debt / equity	2.78×	2.33×	3.1×	0.35×	2.27×	4.53×	0.42×	3.05×
Interest coverage	0.77×	0.8×	0.86×	1.34×	6.7×	2.49×	0.98×	2.42×
Dividend yield	9.4%	7.9%	8.5%	7.2%	16.5%	7.3%	8.6%	7.4%
Payout ratio	-43.0%	-3585.7%	-190.7%	69.5%	44.6%	81.9%	164.8%	83.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	-30.3%	-0.3%	-6.2%	8.0%	36.6%	14.1%	9.7%	18.6%
Return on invested capital	2.0%	1.1%	1.2%	3.4%	13.0%	5.3%	1.7%	4.9%
Return on assets	-4.7%	-0.0%	-0.9%	1.8%	7.5%	1.5%	1.4%	2.9%
Free cash flow yield	23.7%	23.4%	27.4%	27.2%	18.6%	34.7%	20.7%	12.0%
Earnings yield	-21.9%	-0.2%	-4.5%	10.3%	36.9%	8.9%	5.2%	8.9%
Enterprise value	€52.8B	€59.2B	€57.2B	€20.9B	€63.8B	€63B	€33.1B	€86.6B
Net debt / EBITDA	3.75×	2.99×	3.6×	0.1×	1.85×	3.27×	0.08×	3.29×
Cash conversion cycle (days)	-49	-119	-57	-105	-95	-56	-99	-25