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Deutsche Telekom AG
XETRA:DTE

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Deutsche Telekom AG
XETRA:DTE
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Price: 27.32 EUR 2.09% Market Closed
Market Cap: €134B

EV/FCFF

11.5
Current
6%
Cheaper
vs 3-y average of 12.3

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
11.5
=
Enterprise Value
€263.5B
/
Free Cash Flow to Firm
€21.4B

Enterprise Value to Free Cash Flow to Firm (EV/FCFF) ratio compares a company`s total enterprise value to the free cash flow available to all investors, both debt and equity holders. It shows how much investors are paying for each dollar of cash flow the business generates before interest payments.

EV/FCFF
11.5
=
Enterprise Value
€263.5B
/
Free Cash Flow to Firm
€21.4B

Valuation Scenarios

Deutsche Telekom AG is trading below its 3-year average

If EV/FCFF returns to its 3-Year Average (12.3), the stock would be worth €29.1 (7% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-1%
Maximum Upside
+53%
Average Upside
20%
Scenario EV/FCFF Value Implied Price Upside/Downside
Current Multiple 11.5 €27.32
0%
3-Year Average 12.3 €29.1
+7%
5-Year Average 13.9 €32.85
+20%
Industry Average 11.5 €27.14
-1%
Country Average 17.7 €41.87
+53%

Forward EV/FCFF
Today’s price vs future free cash flow to firm

Not enough data available to calculate forward EV/FCFF

Peer Comparison

All Multiples
EV/FCFF
P/E
All Countries
Close
Market Cap EV/FCFF P/E
DE
Deutsche Telekom AG
XETRA:DTE
132.2B EUR 11.5 13.8
US
Verizon Communications Inc
NYSE:VZ
196.6B USD 16.1 11.4
US
AT&T Inc
NYSE:T
179.3B USD 17.2 8.4
CN
China Telecom Corp Ltd
SSE:601728
547.2B CNY 9.4 16.7
JP
Nippon Telegraph and Telephone Corp
TSE:9432
12.5T JPY -1 292.5 11.6
SG
Singapore Telecommunications Ltd
SGX:Z74
74.8B SGD 46.1 12.1
FR
Orange SA
PAR:ORA
46.6B EUR 20.9 86.7
SA
Saudi Telecom Company SJSC
SAU:7010
189.1B SAR 28.6 12.8
AU
Telstra Group Ltd
F:5KB
37B EUR 19.3 27.2
CH
Swisscom AG
SIX:SCMN
34B CHF 15.9 26.9
AU
Telstra Corporation Ltd
ASX:TLS
59.1B AUD 18.6 26.1

Market Distribution

Lower than 72% of companies in Germany
Percentile
28th
Based on 1 970 companies
28th percentile
11.5
Low
0.1 — 11.9
Typical Range
11.9 — 29.2
High
29.2 —
Distribution Statistics
Germany
Min 0.1
30th Percentile 11.9
Median 17.7
70th Percentile 29.2
Max 2 317.8

Deutsche Telekom AG
Glance View

Deutsche Telekom AG, a formidable titan in the telecommunications industry, stands as a testament to Germany's prowess in global logistics and infrastructure. Emerging from the privatization wave of the 1990s, the company transitioned from a state-owned monopoly into an integrated service provider, deftly adapting to the rapidly shifting technological landscape. With its headquarters in Bonn, Deutsche Telekom spans an impressive network across Europe and beyond, reaching into the United States through its subsidiary, T-Mobile US. This diversity in geographic coverage positions Deutsche Telekom to serve a wide range of customers with an array of services, including fixed-line telephony, mobile communications, broadband internet, and digital television, each meticulously tailored to an ever-evolving market. At its core, Deutsche Telekom's operations revolve around its vast telecom infrastructure, a backbone of connectivity that supports millions of customers globally. The company earns its revenue through a blend of consumer and business services, leveraging its extensive fiber optic and mobile networks to provide reliable connectivity solutions. With its strategically segmented business units, Deutsche Telekom maximizes profitability by catering to both individual consumers and large enterprises, offering packaged deals and expansive service plans that drive customer loyalty and enhance user experience. The company's commitment to innovation is evident in its investments in 5G technology, cloud services, and the Internet of Things (IoT), all of which are reshaping new revenue streams and fortifying its standing as a leader in the digital age. This strategic foresight and adaptability, akin to the teachings of investment maestros, underscores Deutsche Telekom's robust business model and its continuous pursuit of sustainable growth.

DTE Intrinsic Value
45.91 EUR
Undervaluation 40%
Intrinsic Value
Price €27.32
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