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Telefonica SA
MAD:TEF

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Telefonica SA
MAD:TEF
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Price: 3.876 EUR -0.31% Market Closed
Market Cap: €21.9B

P/OCF

2.3
Current
11%
More Expensive
vs 3-y average of 2.1

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2.3
=
Market Cap
€21.6B
/
Operating Cash Flow
€9.4B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
2.3
=
Market Cap
€21.6B
/
Operating Cash Flow
€9.4B

Valuation Scenarios

Telefonica SA is trading above its 3-year average

If P/OCF returns to its 3-Year Average (2.1), the stock would be worth €3.48 (10% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-22%
Maximum Upside
+308%
Average Upside
66%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 2.3 €3.88
0%
3-Year Average 2.1 €3.48
-10%
5-Year Average 2 €3.4
-12%
Industry Average 1.8 €3.03
-22%
Country Average 9.5 €15.82
+308%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
ES
Telefonica SA
MAD:TEF
21.9B EUR 2.3 -4.8
US
Verizon Communications Inc
NYSE:VZ
195.6B USD 5.3 11.4
US
AT&T Inc
NYSE:T
182.5B USD 4.7 8.6
DE
Deutsche Telekom AG
XETRA:DTE
133.6B EUR 3.3 13.9
CN
China Telecom Corp Ltd
SSE:601728
545.4B CNY 4.3 16.2
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY 5.6 11.6
SG
Singapore Telecommunications Ltd
SGX:Z74
77.4B SGD 14.9 12.5
FR
Orange SA
PAR:ORA
46.9B EUR 4.4 87.2
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 10.3 12.8
CH
Swisscom AG
SIX:SCMN
34.4B CHF 5.8 27.7
AU
Telstra Group Ltd
F:5KB
36.7B EUR 7.9 27

Market Distribution

Lower than 93% of companies in Spain
Percentile
7th
Based on 618 companies
7th percentile
2.3
Low
1.5 — 6
Typical Range
6 — 14.8
High
14.8 —
Distribution Statistics
Spain
Min 1.5
30th Percentile 6
Median 9.5
70th Percentile 14.8
Max 217.5

Telefonica SA
Glance View

In the sprawling landscape of global telecommunications, Telefónica SA has carved out a significant niche, establishing itself as a robust player in the industry. Founded in Spain in 1924, the company has grown into one of the largest telecommunications corporations in the world, with operations sprawling across Europe and Latin America. Telefónica's journey is marked by its commitment to advancing connectivity and communication. The company operates through several branches, but its primary revenue streams flow from its mobile and fixed-line services, broadband, and digital solutions. This multilayered network of services ensures Telefónica remains entrenched in its customers' daily lives, driving the digital transformation in the regions it serves. Its vast infrastructure, including extensive fiber optic networks, stands as a testament to its investment in long-term growth and innovation. Beyond traditional telecom services, Telefónica has adeptly navigated the evolving digital landscape by diversifying its offerings. The company has embraced digital transformation not just as a buzzword but as a core business strategy, venturing into fields like IoT (Internet of Things), cybersecurity, and cloud solutions. These expansions allow Telefónica to tap into emerging markets and align with global shifts towards interconnected technologies. Moreover, the strategic partnerships and collaborations with tech firms amplify its reach and capabilities, ensuring it remains competitive amid rapid technological change. Despite challenges, such as regulatory constraints and intense competition, Telefónica's blend of traditional telecom services and modern digital solutions positions it as a pivotal force in connecting people and businesses across the globe.

TEF Intrinsic Value
6.393 EUR
Undervaluation 39%
Intrinsic Value
Price €3.876
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