Telefonica Valuation

TEF Stock  USD 4.41  0.04  0.92%   
At this time, the company appears to be undervalued. Telefonica SA ADR has a current Real Value of $4.73 per share. The regular price of the company is $4.41. Our model measures the value of Telefonica SA ADR from inspecting the company fundamentals such as Shares Outstanding of 5.75 B, operating margin of (0.05) %, and Return On Equity of -0.0195 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Price Book
1.0708
Enterprise Value
64.9 B
Enterprise Value Ebitda
6.2825
Price Sales
0.6244
Forward PE
12.7226
Undervalued
Today
4.41
Please note that Telefonica's price fluctuation is not too volatile at this time. Calculation of the real value of Telefonica SA ADR is based on 3 months time horizon. Increasing Telefonica's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Telefonica SA ADR is useful when determining the fair value of the Telefonica stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Telefonica. Since Telefonica is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Telefonica Stock. However, Telefonica's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  4.41 Real  4.73 Target  4.75 Hype  4.41 Naive  4.38
The real value of Telefonica Stock, also known as its intrinsic value, is the underlying worth of Telefonica SA ADR Company, which is reflected in its stock price. It is based on Telefonica's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Telefonica's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Telefonica's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
4.73
Real Value
5.69
Upside
Estimating the potential upside or downside of Telefonica SA ADR helps investors to forecast how Telefonica stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Telefonica more accurately as focusing exclusively on Telefonica's fundamentals will not take into account other important factors:
Hype
Prediction
LowEstimatedHigh
3.454.415.37
Details
Potential
Annual Dividend
LowForecastedHigh
0.200.210.22
Details
2 Analysts
Consensus
LowTarget PriceHigh
4.324.755.27
Details

Telefonica Investments

(6.2 Billion)

Telefonica Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Telefonica's current stock value. Our valuation model uses many indicators to compare Telefonica value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Telefonica competition to find correlations between indicators driving Telefonica's intrinsic value. More Info.
Telefonica SA ADR is currently regarded as top stock in price to sales category among related companies. It is currently regarded as top stock in net asset category among related companies making up about  167,078,795,644  of Net Asset per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Telefonica by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Telefonica's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Telefonica's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Telefonica's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Telefonica and how it compares across the competition.

About Telefonica Valuation

The stock valuation mechanism determines the current worth of Telefonica SA ADR on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Telefonica SA ADR. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Telefonica SA ADR based exclusively on its fundamental and basic technical indicators. By analyzing Telefonica's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Telefonica's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Telefonica. We calculate exposure to Telefonica's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Telefonica's related companies.
Last ReportedProjected for 2024
Gross Profit28.2 B26.7 B
Pretax Profit Margin(0.04)(0.03)
Operating Profit Margin 0.06  0.06 
Net Loss(0.02)(0.02)
Gross Profit Margin 0.69  0.77 

8 Steps to conduct Telefonica's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Telefonica's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Telefonica's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Telefonica's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Telefonica's revenue streams: Identify Telefonica's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Telefonica's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Telefonica's growth potential: Evaluate Telefonica's management, business model, and growth potential.
  • Determine Telefonica's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Telefonica's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Telefonica's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Telefonica's value is low or high relative to the company's performance and growth projections. Determining the market value of Telefonica can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Telefonica represents a small ownership stake in the entity. As a stockholder of Telefonica, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Telefonica Dividends Analysis For Valuation

The Telefonica's current Dividends Paid is estimated to increase to about (1.6 B). The current Dividend Yield is estimated to decrease to 0.05. The Telefonica's current Retained Earnings is estimated to increase to about 26.1 B, while Price Earnings Ratio is forecasted to increase to (21.63).
Last ReportedProjected for 2024
Dividends Paid-1.7 B-1.6 B
Dividend Yield 0.08  0.05 
Dividend Payout Ratio(1.92)(1.83)
Dividend Paid And Capex Coverage Ratio(2.62)(2.75)
There are various types of dividends Telefonica can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Telefonica shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Telefonica SA ADR directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Telefonica pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Telefonica by the value of the dividends paid out.

Telefonica Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Telefonica does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding5.7 B
Quarterly Earnings Growth Y O Y0.105
Forward Price Earnings12.7226

Telefonica Current Valuation Indicators

Valuation refers to the process of determining the present value of Telefonica SA ADR and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Telefonica we look at many different elements of the entity such as Telefonica's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Telefonica's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Telefonica's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Telefonica, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Telefonica's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Telefonica's worth.
When determining whether Telefonica SA ADR is a strong investment it is important to analyze Telefonica's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Telefonica's future performance. For an informed investment choice regarding Telefonica Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Telefonica SA ADR. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in income.
Note that the Telefonica SA ADR information on this page should be used as a complementary analysis to other Telefonica's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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When running Telefonica's price analysis, check to measure Telefonica's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Telefonica is operating at the current time. Most of Telefonica's value examination focuses on studying past and present price action to predict the probability of Telefonica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Telefonica's price. Additionally, you may evaluate how the addition of Telefonica to your portfolios can decrease your overall portfolio volatility.
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Is Telefonica's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Telefonica. If investors know Telefonica will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Telefonica listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.105
Dividend Share
0.3
Earnings Share
(0.22)
Revenue Per Share
7.172
Quarterly Revenue Growth
0.072
The market value of Telefonica SA ADR is measured differently than its book value, which is the value of Telefonica that is recorded on the company's balance sheet. Investors also form their own opinion of Telefonica's value that differs from its market value or its book value, called intrinsic value, which is Telefonica's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Telefonica's market value can be influenced by many factors that don't directly affect Telefonica's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Telefonica's value and its price as these two are different measures arrived at by different means. Investors typically determine if Telefonica is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Telefonica's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.