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:
Below please find a table outlining a discounted cash flow forecast for TEF, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Telefonica S A ranked in the 82th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 660.83% on a DCF basis. The most interesting components of our discounted cash flow analysis for Telefonica S A ended up being:
26% of the company's capital comes from equity, which is greater than just 10.97% 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 10.88% 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 76.25% 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 ORBC, VEON, ALSK, CTL, and T.
Telefonica, S.A. (TEF) Half Year 2020 Earnings Conference Call July 30, 2020 4:00 AM ET Company Participants Pablo Eguiron – Head, Investor Relations José María Álvarez – Executive Chairman and Chief Executive Officer Ángel Vilá – Chief Operating Officer and Executive Director Laura Abasolo – Chief Financial and Control Officer...
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Telefonica del Peru S.A.A. New York, July 29, 2020 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Telefonica del Peru S.A.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.