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. 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 70.82% of positive cash flow stocks in the Communication Services.
27% of the company's capital comes from equity, which is greater than only 16.6% 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 merely 21.21% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Communication Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as TEF, try VEON, ALSK, FTR, SHEN, and CHT.