<div id="readability-page-1"><div><p>Telefónica (BME:TEF) has come back into focus for investors after its latest reported figures showed annual revenue of €41.62b alongside a net loss of €1.02b, a combination that often prompts fresh questions about valuation and risk.</p> <p>See our latest analysis for Telefónica.</p> <p>At a share price of €3.64, Telefónica has seen a 5.91% 1 month share price return and a 4.57% year to date share price return. Its 1 year total shareholder return of an 8.32% decline contrasts with positive 3 and 5 year total shareholder returns, suggesting shorter term momentum has softened against a stronger longer term record.</p> <p>If this mix of recent losses and longer term gains has you thinking about diversification, it could be a good time to look at 101 top founder-led companies as another set of ideas to research.</p> <p>So with Telefónica trading at €3.64, a value score of 5 and an indicated intrinsic value gap of around 50%, is the recent weakness setting up a potential opportunity, or is the market already pricing in future growth?</p> <h2>Most Popular Narrative: 19.3% Undervalued</h2> <p>Telefónica’s most followed narrative points to a fair value of €4.51 per share versus the current €3.64, framing the gap through cash flow and margin assumptions under a 9.10% discount rate.</p> <blockquote> <p><em>The completion of large-scale portfolio optimization and monetization of non-core assets (sale of Argentina, Peru, Colombia, Uruguay, Ecuador, etc.) is reducing geographic risk and freeing up significant capital (€3 billion+). The strategy to focus on core markets (Spain, Brazil, Germany, UK) enables redeployment of resources to higher-return areas, improving free cash flow and ROCE.</em></p> </blockquote> <p>Read the complete narrative.</p> <p>Want to see what kind of earnings turnaround and margin rebuild support that higher fair value, and how a shrinking revenue base still backs an upside case? The full narrative lays out the revenue path, profit mix shift, and valuation multiple that need to line up for €4.51 to make sense.</p> <p><strong>Result: Fair Value of €4.51 (UNDERVALUED)</strong></p> <p>Have a read of the narrative in full and understand what's behind the forecasts.</p> <p>However, this upside narrative still leans heavily on Telefónica managing its high leverage and avoiding a prolonged revenue slowdown in mature core markets like Spain and Germany.</p> <p>Find out about the key risks to this Telefónica narrative.</p> <h2> Build Your Own Telefónica Narrative</h2> <p>If you look at the numbers and come to a different conclusion, or simply prefer to base decisions on your own work, you can pull the data together and build a Telefónica view that reflects your assumptions in just a few minutes, Do it your way</p> <p>A great starting point for your Telefónica research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.</p> <h2>Looking for more investment ideas?</h2> <p>If Telefónica has sharpened your thinking, do not stop here. Use the Simply Wall Street Screener to uncover more focused opportunities that might suit your approach.</p> <ul> <li>Target quality at a discount by checking companies on our 222 high quality undervalued stocks that pair solid fundamentals with prices that may sit below their estimated fair value.</li> <li>Prioritise resilience by scanning the 331 resilient stocks with low risk scores where businesses with lower risk scores and steadier profiles can help balance a concentrated portfolio.</li> <li>Spot potential early movers by reviewing the screener containing 550 high quality undiscovered gems which highlights under the radar names with stronger fundamentals than their visibility suggests.</li> </ul> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p><div><h3>Valuation is complex, but we're here to simplify it.</h3><p>Discover if Telefónica might be undervalued or overvalued with our detailed analysis, featuring <strong>fair value estimates, potential risks, dividends, insider trades, and its financial condition.</strong></p><p>Access Free Analysis</p></div></div></div>

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<p>Telefónica (BME:TEF) reported annual revenue of €41.62 billion and a net loss of €1.02 billion, raising questions about its valuation. Currently trading at €3.64, the stock has seen a 5.91% return over the past month. Analysts suggest a fair value of €4.51 per share, indicating it may be undervalued. The company is focusing on core markets and optimizing its portfolio to improve cash flow. However, risks remain regarding high leverage and revenue stability in mature markets. Investors are encouraged to conduct their own analysis before making decisions.</p>

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Telefónica (BME:TEF) Valuation Check After Reporting Annual Loss And Recent Share Price Gains