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 81th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of Telefonica S A, consider:
As a business, TEF is generating more cash flow than 72.24% of positive cash flow stocks in the Communication Services.
27% of the company's capital comes from equity, which is greater than just 14.81% 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 24.23% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
VEON, SHEN, ALSK, CHT, and CHU can be thought of as valuation peers to TEF, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.