Telecom Italia S.p.A. (TIT.MI) 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

-235.9%

-€7.70

vs €5.66 price

Levered DCF

-€4.93

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

0.77

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	36.71×	-8.23×	-4.34×	-1.54×	-1.06×	1.11×	12.78×	-7.31×
P/B	0.89×	0.44×	0.46×	0.3×	0.53×	0.3×	0.58×	0.53×
P/S	0.8×	0.36×	0.44×	0.29×	0.6×	0.5×	0.65×	0.55×
EV / EBITDA	7.71×	3.72×	7.32×	5.85×	29.66×	4.56×	5.02×	8.26×
Gross margin	100.0%	46.6%	50.5%	57.8%	60.4%	64.1%	66.3%	60.3%
Operating margin	11.4%	10.7%	9.4%	3.8%	-23.0%	13.3%	17.7%	3.0%
Net margin	2.2%	-4.2%	-10.1%	-18.5%	-56.5%	45.7%	5.1%	-7.4%
Current ratio	0.77×	0.8×	0.68×	0.72×	0.86×	0.97×	1.18×	0.68×
Debt / equity	1.13×	1.3×	2.34×	2.07×	1.84×	1.14×	1.58×	1.59×
Interest coverage	0×	0.92×	0.75×	0.38×	-2.57×	1.46×	1.88×	0.35×
Dividend yield	2.5%	3.0%	3.0%	1.5%	4.0%	4.9%	2.4%	2.5%
Payout ratio	91.9%	-26.1%	-13.1%	-2.3%	-4.3%	5.4%	30.5%	-18.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	2.4%	-5.1%	-10.6%	-19.4%	-49.7%	27.6%	4.5%	-7.2%
Return on invested capital	4.5%	1.6%	2.5%	1.1%	-5.9%	3.2%	3.6%	1.0%
Return on assets	0.8%	-1.6%	-2.3%	-4.7%	-12.5%	9.9%	1.3%	-2.2%
Free cash flow yield	7.9%	7.7%	-0.4%	-30.7%	3.5%	23.3%	19.5%	0.6%
Earnings yield	2.7%	-11.6%	-23.1%	-63.8%	-94.0%	90.9%	7.8%	-13.7%
Enterprise value	€22.6B	€17.9B	€35.2B	€32.2B	€34.4B	€33.1B	€40.6B	€39.4B
Net debt / EBITDA	3.99×	2.63×	6.03×	5.02×	21.72×	3.46×	3.57×	6.1×
Cash conversion cycle (days)	118	-111	-182	-206	-230	-181	-177	-131