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freenet AG (FNTN) Fair Value & Analysis

Communication Services · DE · Market cap €2.8B · ISIN DE000A0Z2ZZ5

What is freenet AG really worth?

FA freenet AG FNTN · XETRA
Price€24.38
Fair Value€45.32
Upside+85.9%
Quality66/100

A solid business, trading 46% below our fair value of €45.32.

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Strengths

Low debt · generates free cash flow
Ranks above peers (11/15)

Risks

!Weak Growth (revenue 5y −1.1 %/yr)
!Thin margins · 10.0% net margin
!Moderate moat 54/100

For context

·8.49% dividend yield
Evidence: High Range €31.89 – €62.65

Fair value as of: Aug 30, 2026

From 24 valuation models · updated 6 days ago

Share price +1.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price is below even our cautious bear case (€31.89). The market is more pessimistic than our downside scenario.
  • Solid quality (66/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (€31.89 to €62.65) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

€32.60 €13.81 Fair Value €45.32 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range €13.81 – €32.60 · fair‑value band €31.89 – €62.65 · the €24.38 price screens below the €45.32 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

freenet AG (FNTN) currently trades at €24.38, while our model-based Fair Value estimate is €45.32, implying the stock looks roughly 46.2% undervalued today. The Quality Score stands at 66/100 (solid quality), in the Communication Services sector. Bull case: the Multiples group reads highest at a median of €45.08 per share, and 19 of the 24 models we run sit above the €24.38 price. Bear case: the Asset-Based group reads lowest at €8.70, and 5 of the 24 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, freenet AG generated revenue of €2.6B at a net margin of 10.0%. Revenue grew 25.9% year over year. It earns a return on equity of 16.8%. Net debt stands at €839M. Fundamentals as of Aug 30, 2026

Our scenario range runs from €31.89 (bear case) to €62.65 (bull case); at €24.38, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 30% fair-value upside, at 86%, FNTN screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €0.0880 per share, which is 0.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF €28.30 €38.74 €57.50 80
Growth DCF €29.50 €39.57 €56.25 79
Owner Earnings €28.61 €39.17 €58.13 76
All 24 models by family
DCF Models
FCF DCF €28.30 €38.74 €57.50 80
Owner Earnings €28.61 €39.17 €58.13 76
5Y Revenue Exit €28.62 €42.19 €61.90 72
5Y EBITDA Exit €32.72 €49.27 €71.20 75
5Y P/E Exit €30.64 €45.68 €63.65 71
10Y Revenue Exit €27.48 €37.40 €48.05 68
10Y EBITDA Exit €30.71 €41.68 €53.38 69
10Y P/E Exit €29.47 €39.51 €49.05 65
Earnings-Based
Graham-Dodd €15.63 €19.10 €21.49 67
EPV €24.66 €28.60 €31.99 74
Dividend Discount
Gordon GGM €17.43 €18.99 €21.36 69
DDM Multi-Stage €17.43 €21.53 €27.14 67
Multiples
P/E Multiple €37.93 €50.57 €63.21 63
P/S Multiple €29.31 €39.08 €48.85 58
P/B Multiple €29.31 €39.08 €48.85 55
EV/EBIT €41.59 €55.54 €69.49 66
EV/EBITDA €41.70 €55.68 €69.67 67
EV/Revenue €31.47 €45.08 €58.68 53
Asset-Based
NCAV (Graham) €6.49 €8.70 €12.98 54
Growth DCF
Growth DCF €29.50 €39.57 €56.25 79
Rev-Margin DCF €28.62 €42.88 €60.32 73
Economic Profit
Residual Income €14.21 €17.32 €34.91 72
ROIC Compounder €24.66 €29.62 €34.59 72
Growth Earnings
Growth-Adj P/E €26.74 €38.19 €49.65 67

Widest divergence: Multiples (€45.08) versus Asset-Based (€8.70). Highest evidence: FCF DCF (80).

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Key figures & financial health

P/E ratio 11.1
P/S ratio 1.23 P/E × margin
EPS (TTM) €2.20 price ÷ EPS = P/E 11.1
Dividend yield 8.5% payout 94.1%
Net margin 11.1% FY2025
Return on equity 16.8% TTM
More key figures
Profitability
Return on assets (EBIT) 8.5% avg 5y
Operating margin 10.7% TTM
Growth
Revenue (TTM) €2.6B TTM
Revenue growth (YoY) +25.9% 3y avg −1.5%
EPS growth (YoY) −17.2%
Balance sheet & cash flow
Free cash flow €364M FY2025
Net debt €839M FY2025 · ≈ 2.3 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 66/100

Of which business quality 63 · Market factors (momentum, volatility) 48

Profitability 49
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 71
Earnings quality: real cash, not paper profit
Fin. Strength 59
Balance sheet, leverage, solvency risk
Investment 97
Disciplined investing over empire-building
Low Volatility 88
Calm price path (market factor)
Momentum 35
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 87
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments.

Full company description

freenet AG provides telecommunications, broadcasting, and multimedia services for mobile communications/mobile internet, and digital lifestyle sectors in Germany. It operates through Mobile Communications, TV and Media, and Other/Holding segments. The Mobile Communications segment engages in marketing mobile communications services, which include voice and data services from the mobile network operators; planning, set up, installation, and maintenance services for WiFi networks; and selling and distribution of mobile devices, as well as offering additional services for mobile data communications and digital lifestyle. This segment also provides network-independent services and tariffs; tariffs of the network operators; and freenet Internet, an app-based Internet product. The TV and Media segment is involved in the planning, project management, construction, operation, service, and marketing services for broadcast-related solutions for business clients in the broadcasting and media sectors; and the provision of services to end users in the field of DVB-T2 and IPTV. The Other/Holding segment offers portal services, such as e-commerce/advertising services; payment services; various digital products and entertainment formats for downloading and displaying, as well as use on mobile devices; communication development solutions, IT services, and other services; narrowband voice services; data services; and distribution services. The company was formerly known as telunico holding AG and changed its name to freenet AG in March 2005. freenet AG was incorporated in 2005 and is headquartered in Büdelsdorf, Germany.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

freenet AG reported revenue of €2.4B in FY2025 versus €2.6B in FY2021, a compound −1.2%/yr. Reported net income was €271M in FY2025, compounding +8.2%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
€2.4B
Latest YoY
−1.5%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.5%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.1%
Avg. revenue growth/yr (21Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+1.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+17.5% (9.0 + 8.5)
Revenue −1.2%/yr
FY21 €2.6B
FY22 €2.6B
FY23 €2.6B
FY24 €2.5B
FY25 €2.4B
Net income +8.2%/yr
FY21 €198M
FY22 €79.3M
FY23 €155M
FY24 €247M
FY25 €271M
Character of growth · EPS growth decomposed (2014-2025) +0.5 % p.a.
Revenue per share −1.7 %

of which total revenue −2.6 % · buybacks/dilution +0.9 %

EBIT margin +4.7 %
Tax rate −1.8 %
Residual (interest, one-offs) −0.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "freenet AG Fair Value". https://www.fairvalue-calculator.com/stock/FNTN

Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Telecom Services · 248 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 66 · Top 25%
Fair Value upside +86% · Top 25%
Return on equity (TTM) 17% · Above median
Return on assets 7% · Top 25%
Net margin (TTM) 10% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 26% · Top 25%
Dividend yield (TTM) 8.5% · Top 25%
Debt / equity 0.13× · Lower than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 11.1× · Cheaper than median
P/B 2.11× · Pricier than median
P/S (TTM) 1.23× · Pricier than median
P/FCF 8.9× · Pricier than median
EV/EBITDA 7.8× · Pricier than median
PEG 0.85× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE100 · sector 28
FUTURE100 · sector 16
PAST67 · sector 28
HEALTH94 · sector 89
DIVIDEND100 · sector 76

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Aug 30, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥96.11 ¥109.88 +14%
T-Mobile US, Inc TMUS $177.75 $172.67 −3%
Verizon Communications Inc VZ $49.43 $64.43 +30%
AT&T Inc T $26.01 $43.97 +69%
Bharti Airtel Limited BHARTIARTL ₹1,935 ₹941.48 −51%
Comcast Corporation CMCSA $26.41 $95.42 +261%
China Telecom Corporation 601728 ¥6.43 ¥8.36 +30%
América Móvil, S.A. AMX $23.50 $39.45 +68%
Singapore Telecommunications Limited Z77 4.29 SGD 3.03 SGD −29%
Swisscom AG SCMN CHF 627.50 CHF 463.92 −26%

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Frequently asked questions

Is freenet AG (FNTN) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of €45.32 versus a price of €24.38, about +86% upside (undervalued).
What is the fair value of FNTN?
Our model-based fair value for freenet AG is €45.32 (as of Aug 30, 2026), built from audited fundamentals. The current price: €24.38.
What is the quality score of FNTN?
freenet AG has a Quality Score of 66/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of freenet AG (FNTN)?
freenet AG reported trailing-twelve-month revenue of about €2.6B (latest available figure, as of Aug 30, 2026).
What is the net profit margin of FNTN?
The net profit margin of freenet AG is about 10.0%, meaning it keeps roughly 10.0% of revenue as net income. Based on the latest reported figures.
Does freenet AG pay a dividend?
freenet AG currently shows a dividend yield of about 8.49% relative to its recent price (as of Aug 30, 2026).
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