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Telecom Italia SpA
MIL:TIT

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Telecom Italia SpA
MIL:TIT
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Price: 0.6714 EUR 0.3%
Market Cap: €14.3B

EV/GP

2.8
Current
56%
More Expensive
vs 3-y average of 1.8

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.8
=
Enterprise Value
€20.4B
/
Gross Profit
€7.5B

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
2.8
=
Enterprise Value
€20.4B
/
Gross Profit
€7.5B

Valuation Scenarios

Telecom Italia SpA is trading above its 3-year average

If EV/GP returns to its 3-Year Average (1.8), the stock would be worth €0.43 (36% downside from current price).

Statistics
Positive Scenarios
0/4
Maximum Downside
-36%
Maximum Upside
No Upside Scenarios
Average Downside
27%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 2.8 €0.67
0%
3-Year Average 1.8 €0.43
-36%
5-Year Average 2 €0.47
-30%
Industry Average 2 €0.48
-28%
Country Average 2.4 €0.57
-15%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
IT
Telecom Italia SpA
MIL:TIT
14.2B EUR 2.8 48.1
US
Verizon Communications Inc
NYSE:VZ
200.8B USD 4.1 11.6
US
AT&T Inc
NYSE:T
182B USD 4 8.5
DE
Deutsche Telekom AG
XETRA:DTE
133.4B EUR 3.4 13.9
CN
China Telecom Corp Ltd
SSE:601728
551.8B CNY 3.2 16.7
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.6T JPY 0 11.7
SG
Singapore Telecommunications Ltd
SGX:Z74
75.8B SGD 10.5 12.2
FR
Orange SA
PAR:ORA
47.2B EUR 2.9 87.8
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 5.9 12.8
AU
Telstra Group Ltd
F:5KB
36.5B EUR 5 26.7
CH
Swisscom AG
SIX:SCMN
34.3B CHF 4.1 27.2

Market Distribution

In line with most companies in Italy
Percentile
54th
Based on 728 companies
54th percentile
2.8
Low
0.3 — 1.6
Typical Range
1.6 — 3.8
High
3.8 —
Distribution Statistics
Italy
Min 0.3
30th Percentile 1.6
Median 2.4
70th Percentile 3.8
Max 34.5

Telecom Italia SpA
Glance View

In the bustling world of telecommunications, Telecom Italia SpA holds a venerable place, weaving a network that connects the heart of Italy to the rest of the globe. Born from the merger of Italy's primary telecommunications companies in 1994, Telecom Italia has grown from a local service provider into a multinational force in the sector. The company offers a wide array of services, stretching beyond traditional fixed and mobile voice communications into internet services, digital solutions, and cloud platforms. Its foundations are deeply set in the Italian market, where it leads with an extensive infrastructure supporting millions of fixed-line connections and a robust mobile network. However, its influence isn't confined to domestic borders; through subsidiaries like TIM Brasil, Telecom Italia extends its operations across Latin America, capturing a significant presence in the burgeoning Brazilian market. The company's financial architecture is built upon the revenues from its core telecommunication services. It earns through providing connectivity not only to households and businesses but also increasingly through digital content and platform services, which cater to the accelerating demand for broadband and fiber-optic solutions. The strategic push into cloud computing and cybersecurity further diversifies its income streams, reflecting the industry's shift toward comprehensive digital ecosystems. Additionally, by embracing cutting-edge technologies such as 5G, Telecom Italia positions itself to capitalize on new opportunities within the digital transformation landscape. This approach aims not just to enhance profitability but also to secure its competitive edge in a rapidly evolving technological framework where consumer needs have shifted towards faster, more reliable, and integrated services.

TIT Intrinsic Value
0.6613 EUR
Overvaluation 2%
Intrinsic Value
Price €0.6714
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