Latest Ratios: P/E Ratio -65.1x · EV/EBITDA 5.2x · ROE -0.2%. (1989–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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 | 1.19 | 1.19 | 0.54 | 1.98 | 6.96 | 2.07 | 1.97 | 3.07 | 2.37 | 1.72 | 1.21 |
Short-term solvency ratios and asset-utilisation metrics
| 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 | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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% |
| 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 |
High leverage and regulatory exposure
According to current market data, Telefónica trades at a forward P/E of 12.36 and a P/S of 0.50, suggesting that investors are pricing the firm as a stagnant utility rather than a technology-integrated infrastructure provider, despite its extensive fiber and subsea cable asset base.
The valuation multiples appear to reflect a persistent conglomerate discount when compared to peers like Deutsche Telekom, likely driven by exposure to volatile emerging market currencies and historical debt concerns. Investors should monitor whether the market continues to undervalue the Telefónica Tech segment, which may be mispriced due to the company's legacy telecommunications identity.
Based on reported financial statements, Telefónica's ROIC has struggled to maintain momentum, fluctuating between -0.7% and 3.2% over the last ten quarters, which indicates that the company is failing to consistently generate returns above its cost of capital in its core infrastructure-heavy operations.
The low and erratic ROIC suggests that the massive capital intensity required for 5G and fiber deployment is not yet yielding the expected operational efficiencies. This trend warrants further investigation into whether the company's asset-light strategy can effectively improve capital returns or if structural margin pressures will continue to suppress long-term value creation.
As indicated by the most recent quarterly filings, the company's cash conversion cycle has shown extreme volatility, with DPO reaching 162 days in 2025Q3, suggesting that Telefónica may be relying heavily on extended supplier payment terms to manage its liquidity position amidst ongoing revenue contraction.
The high DPO relative to historical norms implies that the company is stretching its payables to preserve cash, which may indicate limited flexibility in its working capital management. Investors should monitor whether this reliance on supplier leverage is sustainable or if it signals underlying stress in the company's ability to fund operations through organic cash flow.
According to the latest quarterly data, the debt-to-EBITDA ratio reached 9.29 in 2025Q3, highlighting a significant increase in leverage that suggests the company's ability to service its debt is becoming increasingly constrained compared to its historical performance and broader industry benchmarks.
The volatility in interest coverage, which dropped to 1.98 in the most recent quarter, indicates that the company's financial flexibility is under pressure in a higher-rate environment. This leverage profile warrants close scrutiny, as it may limit management's ability to pursue strategic investments without further asset divestitures or capital structure adjustments.
The debt-to-equity ratio is frequently misapplied to Telefónica, as the reported figure of 2.01 in 2025Q3 obscures the impact of significant non-recurring charges and accounting restatements that distort the equity base, making it a poor metric for assessing the company's true long-term solvency.
Analysts should instead focus on the net debt-to-EBITDA ratio and interest coverage metrics, which provide a more accurate picture of the company's ability to meet its obligations. Relying on the debt-to-equity ratio in this context may lead to an inaccurate assessment of the firm's financial health due to the volatility of the denominator.
Includes 30+ ratios · 29 years · Updated daily
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Quick answers to the most common questions about buying TEF stock.
Telefónica, S.A.'s current P/E ratio is -65.1x. The historical average is 18.0x.
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.
Telefónica, S.A.'s return on equity (ROE) is -0.2%. The historical average is 14.1%.
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.
Telefónica, S.A.'s current dividend yield is 8.50%.
Telefónica, S.A. has 69.6% gross margin and 5.8% operating margin.
Telefónica, S.A.'s Debt/EBITDA ratio is 4.0x, indicating high leverage. A ratio above 4x may signal elevated financial risk.