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Tele2 AB (TEL2-B) Fair Value & Analysis

Communication Services · SE · Market cap 119B SEK (≈ $12.4B) · ISIN SE0005190238

What is Tele2 AB really worth?

TA Tele2 AB TEL2-B · ST
Pricekr 168.90
Fair Valuekr 114.04
Upside−32.5%
Quality69/100

A solid business, but trading 48% above our fair value of kr 114.04.

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Strengths

Healthy Growth (revenue 5y +2.4 %/yr)
Highly profitable · 33.7% net margin
Moderate debt · generates free cash flow
Wide moat 76/100

Risks

!Mixed vs. peers (8/15)
!Evidence only medium, so the estimate is less certain
!Weak on future: 7 out of 100

For context

·6.22% dividend yield
Evidence: Medium Range kr 83.23 – kr 151.26

Fair value as of: Aug 27, 2026

From 22 valuation models · updated 8 days ago

Share price +4.7% 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 sits above even our optimistic bull case (kr 151.26). The favourable scenario is already priced in.
  • Solid but not exceptional quality (69/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (kr 83.23 to kr 151.26) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

kr 192.10 kr 63.24 Fair Value kr 114.04 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range kr 63.24 – kr 192.10 · fair‑value band kr 83.23 – kr 151.26 · the kr 168.90 price screens above the kr 114.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Tele2 AB (TEL2-B) currently trades at kr 168.90, while our model-based Fair Value estimate is kr 114.04, implying the stock looks roughly 48.1% overvalued today. The Quality Score stands at 69/100 (solid quality), in the Communication Services sector. Bull case: the Multiples group reads highest at a median of kr 114.04 per share, and 2 of the 22 models we run sit above the kr 168.90 price. Bear case: the Asset-Based group reads lowest at kr 21.82, and 20 of the 22 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Tele2 AB generated revenue of 30.0B SEK at a net margin of 33.7%. Revenue grew 1.3% year over year. It earns a return on equity of 39.1%. Net debt stands at 28.9B SEK. Fundamentals as of Aug 27, 2026

Our scenario range runs from kr 83.23 (bear case) to kr 151.26 (bull case); at kr 168.90, the current price sits above 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. Analysts expect earnings well below the last reported figure (earnings in transition, for example expiring patents or contracts); a fair value that looks fair on trailing earnings may then be too optimistic. The share trades about 12% below its 52-week high and 30% 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 −32%, TEL2-B screens richer 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 kr 2.69 per share, which is 2.4 % 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 kr 83.16 kr 122.08 kr 200.88 79
Growth DCF kr 87.69 kr 125.87 kr 196.51 78
Owner Earnings kr 74.83 kr 110.86 kr 183.80 75
All 22 models by family
DCF Models
FCF DCF kr 83.16 kr 122.08 kr 200.88 79
Owner Earnings kr 74.83 kr 110.86 kr 183.80 75
5Y Revenue Exit kr 64.07 kr 101.69 kr 158.55 71
5Y EBITDA Exit kr 103.93 kr 169.27 kr 258.97 74
5Y P/E Exit kr 72.86 kr 116.59 kr 171.01 70
10Y Revenue Exit kr 68.11 kr 101.89 kr 139.75 67
10Y EBITDA Exit kr 94.96 kr 146.39 kr 204.51 68
10Y P/E Exit kr 75.90 kr 111.71 kr 147.78 64
Earnings-Based
Graham-Dodd kr 45.61 kr 74.12 kr 89.58 67
EPV kr 48.00 kr 60.80 kr 72.00 74
Multiples
P/E Multiple kr 110.68 kr 147.58 kr 184.47 63
P/S Multiple kr 85.53 kr 114.04 kr 142.55 58
P/B Multiple kr 85.48 kr 113.97 kr 142.46 55
EV/EBIT kr 87.26 kr 125.95 kr 164.65 65
EV/EBITDA kr 139.69 kr 195.87 kr 252.04 67
EV/Revenue kr 59.20 kr 96.93 kr 134.66 52
Asset-Based
NCAV (Graham) kr 16.28 kr 21.82 kr 32.56 54
Growth DCF
Growth DCF kr 87.69 kr 125.87 kr 196.51 78
Rev-Margin DCF kr 64.07 kr 104.23 kr 155.67 72
Economic Profit
Residual Income kr 43.77 kr 58.02 kr 236.41 64
ROIC Compounder kr 48.75 kr 63.78 kr 80.74 72
Growth Earnings
Growth-Adj P/E kr 78.02 kr 111.46 kr 144.90 67

Widest divergence: Multiples (kr 114.04) versus Asset-Based (kr 21.82). Highest evidence: FCF DCF (79).

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Key figures & financial health

P/E ratio 11.5
P/S ratio 1.77 P/E × margin
EPS (TTM) kr 14.47 price ÷ EPS = P/E 11.5
Dividend yield 6.2% payout 72.6%
Net margin 15.3% FY2025
Return on equity 39.1% TTM
More key figures
Profitability
Return on assets (EBIT) 8.8% avg 5y
Operating margin 25.0% TTM
Growth
Revenue (TTM) 30.0B SEK TTM
Revenue growth (YoY) +1.3% 3y avg +2.1%
EPS growth (YoY) +627%
Balance sheet & cash flow
Free cash flow 7.6B SEK FY2025
Net debt 28.9B SEK FY2025 · ≈ 3.8 yrs of FCF

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 69/100

Of which business quality 64 · Market factors (momentum, volatility) 57

Profitability 52
Margins and returns on capital today
Quality Growth 55
Are margins and returns improving?
Cashflow 88
Earnings quality: real cash, not paper profit
Fin. Strength 40
Balance sheet, leverage, solvency risk
Investment 81
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 37
Price trend over the last 3–12 months (market factor)
52W Momentum 51
Distance to the 52-week high (market factor)
Net Issuance 81
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

Tele2 AB (publ) provides fixed and mobile connectivity and entertainment services in Sweden, Lithuania, Latvia, and Estonia.

Full company description

Tele2 AB (publ) provides fixed and mobile connectivity and entertainment services in Sweden, Lithuania, Latvia, and Estonia. The company offers handset related data services, linear and streaming services, mobile telephony and data, fixed broadband and telephony, switch and contact center, cloud services, IT services, network services, workplace, video and collaboration, united communications, and security services. It also provides data network services, including dark fiber, dedicated wavelength, ethernet and IP VPN, and internet services; and unified communications comprising service provider, mobile virtual network operator, and carrier SIP-interconnect services. In addition, the company offers single and dual IMSI solutions for consumer and IoT applications; on-demand roaming services, such as subscription management, data plan management, real time charging, eSIM delivery, SIM management, and set up services; routing and termination solutions for international voice traffic; application-2-person messaging services; and value-added services comprising shortcodes and long numbers for businesses to have 2-way communication with their customers. Tele2 AB (publ) was formerly known as NetCom AB and changed its name to Tele2 AB (publ) in February 2001. The company was incorporated in 1990 and is headquartered in Kista, Sweden.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Tele2 AB reported revenue of 29.9B SEK in FY2025 versus 26.8B SEK in FY2021, a compound +2.8%/yr. Reported net income was 4.6B SEK in FY2025, compounding +1.6%/yr from FY2021.

Growth Quality 73/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
29.9B SEK
Latest YoY
+1.0%
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.
+2.1%
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.
+2.4%
Avg. revenue growth/yr (28Y) 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.
+7.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+7.4% (1.2 + 6.2)
Revenue +2.8%/yr
FY21 26.8B SEK
FY22 28.1B SEK
FY23 29.1B SEK
FY24 29.6B SEK
FY25 29.9B SEK
Net income +1.6%/yr
FY21 4.3B SEK
FY22 5.6B SEK
FY23 3.7B SEK
FY24 3.9B SEK
FY25 4.6B SEK
Character of growth · EPS growth decomposed (2014-2025) +0.6 % p.a.
Revenue per share −2.9 %

of which total revenue +1.2 % · buybacks/dilution −4.0 %

EBIT margin +6.4 %
Tax rate +0.6 %
Residual (interest, one-offs) −3.2 %

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).

TEL2-B screens 48% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "Tele2 AB Fair Value". https://www.fairvalue-calculator.com/stock/TEL2-B

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 69 · Top 25%
Fair Value upside −33% · Below median
Return on equity (TTM) 39% · Top 25%
Return on assets 7% · Top 25%
Net margin (TTM) 34% · Top 25%
Operating margin (TTM) 25% · Top 25%
Revenue growth 1% · Below median
Dividend yield (TTM) 6.2% · Top 25%
Debt / equity 0.90× · Higher than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 11.5× · Cheaper than median
P/B 5.33× · Pricier than 75% of peers
P/S (TTM) 3.96× · Pricier than 75% of peers
P/FCF 1.6× · Cheaper than median
EV/EBITDA 11.5× · Pricier than 75% of peers
PEG 3.72× · Pricier than 75% of peers

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
VALUE0 · sector 28
FUTURE7 · sector 16
PAST100 · sector 28
HEALTH55 · sector 89
DIVIDEND100 · sector 76

VALUE 0: the price sits above our fair-value range.

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 27, 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 Tele2 AB (TEL2-B) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of kr 114.04 versus a price of kr 168.90, about −32% upside (overvalued).
What is the fair value of TEL2-B?
Our model-based fair value for Tele2 AB is kr 114.04 (as of Aug 27, 2026), built from audited fundamentals. The current price: kr 168.90.
What is the quality score of TEL2-B?
Tele2 AB has a Quality Score of 69/100. 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 Tele2 AB (TEL2-B)?
Tele2 AB reported trailing-twelve-month revenue of about 30.0B SEK (latest available figure, as of Aug 27, 2026).
What is the net profit margin of TEL2-B?
The net profit margin of Tele2 AB is about 33.7%, meaning it keeps roughly 33.7% of revenue as net income. Based on the latest reported figures.
Does Tele2 AB pay a dividend?
Tele2 AB currently shows a dividend yield of about 6.22% relative to its recent price (as of Aug 27, 2026).
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