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:
We started the process of determining a valid price forecast for Telefonica S A with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Telefonica S A ranked in the 82th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 775.5%. The most interesting components of our discounted cash flow analysis for Telefonica S A ended up being:
22% of the company's capital comes from equity, which is greater than only 9.48% of stocks in our cash flow based forecasting set.
Telefonica S A's weighted average cost of capital (WACC) is 7%; for context, that number is higher than only 11.01% 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 80.66% 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 VEON, LUMN, CNSL, T, and ATUS.
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