Telefonica SA

Spain Country flag Spain
Sector: Fixed Line Telecommunications
Ticker: TEF
ISIN: ES0178430E18
Factsheet Factsheet

Market multiple valuation of Telefonica SA ( TEF | ESP)

The most common multiple used in the valuation of stocks is the P/Earnings NTM multiple (Price to Earnings). P/E relates the current share price with the market expectations in terms of Earnings Per Share. This multiple is used to compare a company's market value with its earnings. A company with a high P/Earnings NTM is considered to be overvalued; a company with a low P/Earnings NTM is considered to be undervalued.
The P/Earnings NTM ratio of Telefonica SA is slightly lower than the median of its peer group: around 12.00. The company valuation of Telefonica SA according to these metrics is consistent with the market valuation of its peer group.
The P/Earnings NTM ratio of Telefonica SA is lower than the average of its sector (Fixed Line Telecommunications): 12.95. The company valuation of Telefonica SA according to these metrics is below the market valuation of its sector.
The P/Earnings NTM ratio of Telefonica SA is higher than its historical 5-year average: 10.4. The (current) company valuation of Telefonica SA is therefore above its valuation average over the last five years.

P/E Last P/E (e) 2021P/E NTM
Telefonica SAFree trialFree trialFree trial
International PeersFree trialFree trialFree trial
Fixed Line Telecommunications9.0314.8312.95
IBEX 358.0810.0813.46
Beta (Ref: IBEX 35)
Levered betaUnlevered beta
Stock Perf excl. Dividends (in EUR)
TEFIBEX 35Rel. Perf.
International Peers - Telefonica SA
Company NameCtryMarket
last (mUSD)
Telefonica SAESP24 475
International Peers Median0.61
Orange Polskiej S.A.POL1 693
Proximus SABEL4 564
Millicom International ...LUX2 621
Telecom Italia S.p.A.ITA4 742
Bezeq The Israel Teleco...ISR4 872
GPRV Analysis
Telefonica SA
Intl. Peers
U.S Patents No. 7,882,001 & 8,082,201
Net Sales Chart
Quotes Chart

1-Year Rebased Stock Chart

  • Telefonica SA
  • IBEX 35

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On the Infront Analytics platform, there are two ways to identify the listed peers which most closely resemble a private firm:
- with Peer Tracker if you already know a listed peer.
Peer Tracker is a patented technology tool for building peer groups using industry classifications. The degree of similarity between two companies is calculated comparing their sector footprints and measured using comparability scores.
- with Market Screener if you have no listed peer in mind.
Market Screener is a dedicated interface for screening companies using multiple criteria, identifying peers, searching for comparable companies in a specific business sector.

About Market Multiples

Many methods can be used to value a company. In reality, business valuation is often a combination of these different approaches. One of the most widely used quantitative methods is the market multiples method. The market valuation is utilized generally as a primary market input, to provide an objective starting point for the valuation. Put simply, this method multiplies the sales or profits of a business by an industry averaged multiplier to calculate the Market Value of the business.
Current multiples include:
- Historical multiples based on standardized financials for the last completed fiscal period: Last, Last Twelve Months (LTM);
- Forward multiples based on consensus estimates for the current fiscal period and next ones: Next Twelve Months (NTM), FY0, FY1.
Current multiples based on per-share metrics (such as earnings per share or book value per share) are calculated using the last closing price, while current multiples based on company-level metrics (such as net sales, EBIT or EBITDA) are calculated using the current market cap or EV (Enterprise Value).