Telefónica, S.A. (TEF) Financial Ratios
36 years of historical data (1989–2024) · Communication Services · Telecommunications Services
EV/EBITDA
↑
5.15
+12% vs avg
5yr avg: 4.62
30Y Low2.9·High9.8
P/FCF
↑
3.98
-8% vs avg
5yr avg: 4.30
30Y Low3.8·High127.4
P/B Ratio
↓
0.91
-1% vs avg
5yr avg: 0.92
30Y Low0.6·High6.8
ROE
↓
-0.2%
↑-102% vs avg
5yr avg: 9.1%
30Y Low-20%·High42%
Debt/EBITDA
↑
4.02
+16% vs avg
5yr avg: 3.48
30Y Low1.1·High5.3
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
TEF Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Telefónica, S.A. currently has a negative P/E ratio, indicating the company is operating at a loss on a trailing-twelve-month basis. On a free-cash-flow basis, the stock trades at 4.0x P/FCF, 8% below the 5-year average of 4.3x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $24.4B | $22.6B | $22.3B | $20.5B | $24.3B | $23.5B | $35.7B | $43.9B | $49.5B | $46.6B | $54.5B |
| Enterprise Value | $68.0B | $59.6B | $59.3B | $58.6B | $63.9B | $68.8B | $86.4B | $92.9B | $96.9B | $103.2B | $112.0B |
| P/E Ratio → | -65.09 | — | — | 11.52 | 3.07 | 17.57 | 21.78 | 13.22 | 17.29 | 21.90 | 21.69 |
| P/S Ratio | 0.50 | 0.55 | 0.55 | 0.51 | 0.62 | 0.55 | 0.74 | 0.90 | 0.95 | 0.89 | 1.15 |
| P/B Ratio | 0.91 | 1.00 | 0.82 | 0.65 | 0.85 | 1.29 | 1.40 | 1.63 | 1.86 | 1.64 | 1.98 |
| P/FCF | 3.98 | 4.35 | 3.76 | 3.79 | 5.80 | 3.81 | 5.42 | 9.69 | 10.30 | 11.15 | 12.99 |
| P/OCF | 1.88 | 2.06 | 1.77 | 1.74 | 2.00 | 1.78 | 2.38 | 3.30 | 3.59 | 3.48 | 4.01 |
P/E links to full P/E history page with 30-year chart
TEF EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Telefónica, S.A.'s enterprise value stands at 5.2x EBITDA, 12% above its 5-year average of 4.6x. The Communication Services sector median is 8.7x, placing the stock at a 41% discount on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.44 | 1.46 | 1.47 | 1.63 | 1.60 | 1.78 | 1.91 | 1.86 | 1.98 | 2.37 |
| EV / EBITDA | 5.15 | 5.32 | 5.20 | 4.56 | 2.91 | 5.09 | 5.71 | 5.97 | 5.98 | 6.83 | 9.81 |
| EV / EBIT | 24.07 | 16.77 | 38.45 | 9.79 | 4.52 | 13.75 | 15.67 | 11.25 | 12.17 | 13.36 | 21.04 |
| EV / FCF | — | 11.45 | 9.99 | 10.83 | 15.27 | 11.13 | 13.10 | 20.51 | 20.17 | 24.70 | 26.68 |
TEF Profitability
Margins and return-on-capital ratios measuring operating efficiency
Telefónica, S.A. earns an operating margin of 5.8%. Operating margins have compressed from 10.1% to 5.8% over the past 3 years, signaling potential cost pressures or competitive headwinds. A negative ROE of -0.2% indicates the company is currently destroying shareholder equity. ROIC of 2.9% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 69.6% | 69.6% | 49.8% | 69.6% | 70.8% | 71.8% | 73.7% | 71.2% | 71.1% | 70.7% | 72.7% |
| Operating Margin | 5.8% | 5.8% | 6.4% | 10.1% | 34.6% | 9.6% | 9.4% | 13.4% | 13.1% | 10.5% | 6.1% |
| Net Profit Margin | -0.1% | -0.1% | -2.2% | 5.0% | 20.7% | 3.7% | 2.4% | 6.8% | 6.0% | 4.6% | 5.8% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -0.2% | -0.2% | -3.0% | 6.7% | 34.7% | 7.2% | 4.4% | 12.4% | 11.4% | 8.5% | 9.5% |
| ROA | -0.0% | -0.0% | -0.8% | 1.8% | 7.6% | 1.4% | 1.0% | 2.9% | 2.6% | 1.9% | 2.2% |
| ROIC | 2.9% | 2.9% | 2.9% | 4.4% | 15.5% | 4.4% | 4.5% | 6.5% | 6.4% | 4.8% | 2.6% |
| ROCE | 3.1% | 3.1% | 3.1% | 4.8% | 16.9% | 5.0% | 5.2% | 7.7% | 7.8% | 6.2% | 3.2% |
TEF Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Telefónica, S.A. carries a Debt/EBITDA ratio of 4.0x, which is highly leveraged (16% above the sector average of 3.5x). Net debt stands at $37.0B ($45.0B total debt minus $8.1B cash). Interest coverage of just 0.8x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.98 | 1.98 | 1.63 | 1.43 | 1.68 | 2.78 | 2.23 | 2.03 | 1.98 | 2.13 | 2.18 |
| Debt / EBITDA | 4.02 | 4.02 | 3.87 | 3.53 | 2.19 | 3.77 | 3.75 | 3.51 | 3.25 | 3.99 | 5.26 |
| Net Debt / Equity | — | 1.62 | 1.36 | 1.20 | 1.38 | 2.48 | 1.99 | 1.82 | 1.78 | 1.99 | 2.09 |
| Net Debt / EBITDA | 3.30 | 3.30 | 3.25 | 2.97 | 1.80 | 3.35 | 3.35 | 3.15 | 2.93 | 3.75 | 5.04 |
| Debt / FCF | — | 7.10 | 6.23 | 7.05 | 9.46 | 7.33 | 7.68 | 10.81 | 9.87 | 13.56 | 13.69 |
| Interest Coverage | 0.80 | 0.80 | 0.91 | 1.34 | 6.70 | 1.71 | 1.62 | 2.42 | 2.02 | 1.22 | 0.66 |
TEF Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.87x is below 1.0, meaning current liabilities exceed current assets — though the company's $8.1B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 0.98x to 0.87x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.87 | 0.87 | 0.89 | 0.98 | 0.98 | 1.20 | 0.81 | 0.79 | 0.69 | 0.56 | 0.91 |
| Quick Ratio | 0.83 | 0.83 | 0.85 | 0.91 | 0.91 | 1.14 | 0.74 | 0.73 | 0.65 | 0.53 | 0.87 |
| Cash Ratio | 0.36 | 0.36 | 0.33 | 0.37 | 0.42 | 0.29 | 0.30 | 0.27 | 0.25 | 0.19 | 0.16 |
| Asset Turnover | — | 0.41 | 0.39 | 0.36 | 0.36 | 0.41 | 0.41 | 0.43 | 0.45 | 0.42 | 0.38 |
| Inventory Turnover | 13.16 | 13.16 | 22.00 | 7.86 | 6.57 | 7.07 | 6.38 | 8.28 | 13.45 | 14.45 | 9.49 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
TEF Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Telefónica, S.A. returns 8.5% to shareholders annually primarily through dividends.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 8.5% | 7.8% | 10.4% | 4.7% | 17.7% | 5.5% | 7.7% | 6.4% | 5.0% | 6.2% | 5.1% |
| Payout Ratio | — | — | — | 48.1% | 52.7% | 81.9% | 240.1% | 83.9% | 78.5% | 122.7% | 101.1% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 8.7% | 32.5% | 5.7% | 4.6% | 7.6% | 5.8% | 4.6% | 4.6% |
| FCF Yield | 25.1% | 23.0% | 26.6% | 26.4% | 17.2% | 26.3% | 18.5% | 10.3% | 9.7% | 9.0% | 7.7% |
| Buyback Yield | 0.0% | 0.0% | 8.6% | 0.0% | 2.9% | 0.9% | 1.4% | 0.0% | 0.0% | 1.4% | 3.3% |
| Total Shareholder Yield | 8.5% | 7.8% | 19.0% | 4.7% | 20.6% | 6.5% | 9.1% | 6.4% | 5.0% | 7.7% | 8.3% |
| Shares Outstanding | — | $5.6B | $5.7B | $5.7B | $5.7B | $5.8B | $5.1B | $5.2B | $5.1B | $5.1B | $4.9B |
Peer Comparison
Compare TEF with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 TEFYou | $24B | -65.1 | 5.2 | 4.0 | 69.6% | 5.8% | -0.2% | 2.9% | 4.0 |
 T | $178B | 8.4 | 7.4 | 9.2 | 79.8% | 19.2% | 17.6% | 6.7% | 3.9 |
 VZ | $200B | 11.7 | 8.0 | 9.9 | 45.6% | 21.2% | 16.6% | 8.0% | 4.2 |
 VOD | $38B | -8.6 | 7.5 | 3.7 | 33.4% | -1.1% | -7.0% | -0.3% | 5.5 |
 TU | $20B | 24.2 | 8.7 | 11.6 | 33.8% | 11.5% | 6.7% | 3.9% | 4.9 |
 BCE | $23B | 4.9 | 6.7 | 9.3 | 68.5% | 22.2% | 31.1% | 6.9% | 3.9 |
 TMUS | $209B | 19.9 | 10.1 | 20.2 | 47.6% | 21.2% | 18.2% | 8.1% | 3.8 |
 LILA | $2B | -2.7 | 6.7 | 5.3 | 57.7% | 16.2% | -45.5% | 5.6% | 5.7 |
 AMX | $82B | 18.2 | 6.5 | 11.7 | 42.9% | 21.0% | 18.1% | 11.2% | 2.6 |
 ERIC | $37B | 13.8 | 9.0 | 11.9 | 48.1% | 13.8% | 26.3% | 22.3% | 1.2 |
 NOK | $75B | 102.2 | 33.7 | 45.7 | 43.5% | 3.9% | 3.1% | 3.0% | 2.7 |
| Communication Services Median | — | 15.2 | 8.7 | 11.6 | 49.1% | 1.0% | 2.4% | 3.3% | 3.5 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonTEF — Frequently Asked Questions
Quick answers to the most common questions about buying TEF stock.
What is Telefónica, S.A.'s P/E ratio?
Telefónica, S.A.'s current P/E ratio is -65.1x. The historical average is 18.0x.
What is Telefónica, S.A.'s EV/EBITDA?
Telefónica, S.A.'s current EV/EBITDA is 5.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.4x.
What is Telefónica, S.A.'s ROE?
Telefónica, S.A.'s return on equity (ROE) is -0.2%. The historical average is 14.1%.
Is TEF stock overvalued?
Based on historical data, Telefónica, S.A. is trading at a P/E of -65.1x. Compare with industry peers and growth rates for a complete picture.
What is Telefónica, S.A.'s dividend yield?
Telefónica, S.A.'s current dividend yield is 8.50%.
What are Telefónica, S.A.'s profit margins?
Telefónica, S.A. has 69.6% gross margin and 5.8% operating margin.
How much debt does Telefónica, S.A. have?
Telefónica, S.A.'s Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.