Telefónica stock: fundamental analysis
Stocks · TEF · Communication Services
Telefónica, S.A., together with its subsidiaries, provides telecommunications services in Spain, Brazil, Germany, and the United Kingdom. Below are its fundamentals, explained in the order worth reading them: business quality, debt, growth and, last, whether the price is reasonable.
- Price: 3.57 EUR
- Market cap: 20.1B EUR
Data as of September 18, 2026 · Yahoo Finance
Quick read
Business quality
Negative ROE (-10.3%): it lost money over the last 12 months. It loses 9.1 for every 100 in sales.
Financial health
Net debt/EBITDA of 5.3x: high leverage; keep an eye on maturities and the cost of debt.
Growth
No recent revenue growth figure.
Valuation
It has no P/E: it had no earnings over the last 12 months (or the figure is unavailable). In these cases, look at sales, cash flow or expected earnings.
Dividend
Dividend yield of 4.0% (0.15 EUR per share per year) with a payout ratio of 111.1%. It pays out nearly all (or more) of its earnings: watch whether the dividend is sustainable.
Tools
All metrics
| Telefónica | Sector median | |
|---|---|---|
| Business quality | ||
| ROE | -10.3% | 39.3% |
| ROA | 1.0% | 13.0% |
| Gross margin | 44.8% | 49.1% |
| Operating margin | 9.9% | 33.4% |
| Net margin | -9.1% | 29.0% |
| Financial health | ||
| Net debt/EBITDA | 5.3x | 1.2x |
| Debt/equity | 2.3x | 0.4x |
| Current ratio | 0.9x | 1.1x |
| Growth | ||
| Revenue growth | — | 18.8% |
| Earnings growth | — | — |
| Valuation | ||
| P/E ratio | — | 21.9x |
| Forward P/E | 9.1x | 18.8x |
| EV/EBITDA | 8.8x | 16.1x |
| Price/book | 1.4x | 6.5x |
| FCF yield | 19.4% | 2.7% |
| Dividend | ||
| Dividend yield | 4.0% | 0.9% |
| Payout ratio | 111.1% | 19.4% |
| Beta (volatility) | 0.3x | 1.2x |
Frequently asked questions
What is Telefónica's P/E ratio?
It has no P/E: it had no earnings over the last 12 months (or the figure is unavailable). In these cases, look at sales, cash flow or expected earnings.
What dividend does Telefónica pay?
Dividend yield of 4.0% (0.15 EUR per share per year) with a payout ratio of 111.1%. It pays out nearly all (or more) of its earnings: watch whether the dividend is sustainable.
Is Telefónica stock expensive?
It has no P/E: it had no earnings over the last 12 months (or the figure is unavailable). In these cases, look at sales, cash flow or expected earnings. This is an educational reading based on ratios, not a buy or sell recommendation.
Does Telefónica have a lot of debt?
Net debt/EBITDA of 5.3x: high leverage; keep an eye on maturities and the cost of debt.
What is Telefónica's market cap?
Telefónica has a market cap of 20.1B EUR and its shares trade at 3.57 EUR, with a 52-week range of 3.24 EUR to 4.63 EUR (data as of September 18, 2026).
Other companies in the sector
Trailing 12-month metrics. Educational content, not investment advice.