Telefonica S.A. offers mobile voice, value added, mobile data and Internet, wholesale, corporate, roaming, fixed wireless, and trunking and paging services primarily in Europe and Latin America. The company was founded in 1924 and is based in Madrid, Spain.
TEF Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Telefonica S A. To summarize, we found that Telefonica S A ranked in the 80th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Telefonica S A ended up being:
27% of the company's capital comes from equity, which is greater than only 7.54% of stocks in our cash flow based forecasting set.
Telefonica S A's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 9.32% of tickers in our DCF set.
Relative to other stocks in its sector (Communication Services), Telefonica S A has a reliance on debt greater than 79.86% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Telefonica S A? See CNSL, HCHC, CEL, SIFY, and GSAT.
While Knowles (KN) offers preview of fourth-quarter performance with its preliminary results, Onto (ONTO) enhances its product inspection and detection portfolio with the launch of Dragonfly G3 inspection platform.
Telxius Telecom, a subsidiary of Telefonica, has sold its telecommunications division to American Towers for €7.7 billion ($9.41 billion), payable in cash. Telefonica (TEF) wants to focus on reducing its debt and is actively managing its portfolio to create value. According to Telefónica President José María Álvarez-Pallete, “this is a deal that makes strategic sense within our roadmap.” The agreement includes the sale of approximately 30,722 phone towers across Europe and Latin America. Telefónica Group operators will continue to lease the towers at similar terms to current agreements so that these operators can continue to provide their services.