Telefonica Valuation

TEF Stock  EUR 4.09  0.03  0.74%   
At this time, the company appears to be overvalued. Telefonica has a current Real Value of €3.88 per share. The regular price of the company is €4.09. Our model measures the value of Telefonica from inspecting the company fundamentals such as Operating Margin of 0.04 %, shares outstanding of 5.78 B, and Return On Equity of 0.0196 as well as reviewing its technical indicators and probability of bankruptcy. In general, most investors recommend purchasing undervalued stocks and exiting overvalued stocks since, at some point, asset prices and their ongoing real values will draw towards each other.
Overvalued
Today
4.09
Please note that Telefonica's price fluctuation is not too volatile at this time. Calculation of the real value of Telefonica 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 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  4.09 Real  3.88 Hype  4.09 Naive  4.09
The real value of Telefonica Stock, also known as its intrinsic value, is the underlying worth of Telefonica 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.
3.88
Real Value
4.77
Upside
Estimating the potential upside or downside of Telefonica 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:
Bollinger
Band Projection (param)
LowerMiddle BandUpper
3.964.054.13
Details
Hype
Prediction
LowEstimatedHigh
3.204.094.98
Details
Naive
Forecast
LowNext ValueHigh
3.204.094.97
Details

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 is rated fifth in price to book category among related companies. It is currently regarded as top stock in net asset category among related companies making up about  140,034,619,823  of Net Asset per Price To Book. . 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 on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Telefonica. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Telefonica 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.
Telefnica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. Telefnica, S.A. was founded in 1924 and is headquartered in Madrid, Spain. TELEFONICA operates under Telecom Services classification in Spain and is traded on Madrid SE C.A.T.S.. It employs 111490 people.

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.
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Telefonica. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors.
Note that the Telefonica 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

Complementary Tools for Telefonica Stock analysis

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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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.