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Telecom Italia S.p.A. (TIT) Fair Value & Analysis

Communication Services · IT · Market cap €17.1B · ISIN IT0003497168

What is Telecom Italia S.p.A. really worth?

TI Telecom Italia S.p.A. TIT · MI
Price€7.75
Fair Value€2.85
Upside−63.2%
Quality45/100

Below-average quality, and trading another 172% above our fair value of €2.85.

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Strengths

Moderate debt · generates free cash flow

Risks

!Mixed Growth (revenue 5y −2.8 %/yr)
!Thin margins · 0.9% net margin
!Trails peers (0/15)
!Narrow moat 27/100
!Weak on future: 7 out of 100
!Weak on past: 12 out of 100
Evidence: High Range €2.30 – €3.01

Fair value as of: Sep 1, 2026

From 18 valuation models · updated 4 days ago

Share price +1.6% 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 (€3.01). The favourable scenario is already priced in.
  • Solid but not exceptional quality (45/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

€8.14 €1.71 Fair Value €2.85 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 1, 2026.

How to read this chart

60‑month range €1.71 – €8.14 · fair‑value band €2.30 – €3.01 · the €7.75 price screens above the €2.85 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Sep 1, 2026.

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Analysis

Telecom Italia S.p.A. (TIT) currently trades at €7.75, while our model-based Fair Value estimate is €2.85, implying the stock looks roughly 172.0% overvalued today. The Quality Score stands at 45/100 (below-average quality), in the Communication Services sector. Bull case: the Asset-Based group reads highest at a median of €3.85 per share, and 2 of the 16 models we run sit above the €7.75 price. Bear case: the Earnings-Based group reads lowest at €0.8800, and 14 of the 16 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Telecom Italia S.p.A. generated revenue of €13.9B at a net margin of 0.9%. Revenue grew 1.4% year over year. It earns a return on equity of 3.1%. Net debt stands at €8.2B. Fundamentals as of Sep 1, 2026

Our scenario range runs from €2.30 (bear case) to €3.01 (bull case); at €7.75, 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. The share trades about 4% below its 52-week high and 100% above its 52-week low, currently above its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 30% fair-value upside, at −63%, TIT 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 €0.1218 per share, which is 4.3 % 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
Residual Income best evidence €4.09 €3.91 €3.18 76
5Y EBITDA Exit €6.00 €12.23 €20.48 72
Owner Earnings €0.7700 €2.08 €4.52 70
All 18 models by family
DCF Models
Owner Earnings €0.7700 €2.08 €4.52 70
5Y Revenue Exit €1.20 €3.50 69
5Y EBITDA Exit €6.00 €12.23 €20.48 72
5Y P/E Exit €0.6400 68
10Y Revenue Exit €1.06 64
10Y EBITDA Exit €2.69 €6.64 €11.03 65
Earnings-Based
Graham-Dodd €0.9500 €1.16 €1.30 67
EPV €0.3800 €0.8800 €1.31 69
Multiples
P/E Multiple €2.30 €3.07 €3.84 63
P/S Multiple €1.78 €2.37 €2.97 58
P/B Multiple €1.78 €2.37 €2.97 55
EV/EBIT €2.43 €4.11 €5.78 64
EV/EBITDA €13.60 €19.00 €24.40 67
EV/Revenue €1.22 €2.85 €4.48 50
Asset-Based
NCAV (Graham) €2.87 €3.85 €5.74 54
Economic Profit
Residual Income best evidence €4.09 €3.91 €3.18 76
ROIC Compounder €0.3800 €0.8800 €1.31 69
Growth Earnings
Growth-Adj P/E €1.62 €2.32 €3.01 67

Widest divergence: Asset-Based (€3.85) versus Earnings-Based (€0.8800). Highest evidence: Residual Income (76).

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Key figures & financial health

P/E ratio 43.1
P/S ratio 0.93 P/E × margin
EPS (TTM) €0.1800 price ÷ EPS = P/E 43.1
Dividend yield 1.6% payout 68.7%
Net margin 2.2% FY2025
Return on equity 3.1% TTM
More key figures
Profitability
Return on assets (EBIT) 2.6% avg 5y
Operating margin 5.4% TTM
Growth
Revenue (TTM) €13.9B TTM
Revenue growth (YoY) +1.4% 3y avg −4.5%
EPS growth (YoY) −33.5%
Balance sheet & cash flow
Free cash flow €37.0M FY2025
Net debt €8.2B FY2025

Figures from reported company fundamentals · as of Sep 1, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 45/100

Of which business quality 43 · Market factors (momentum, volatility) 82

Profitability 22
Margins and returns on capital today
Quality Growth 41
Are margins and returns improving?
Cashflow 46
Earnings quality: real cash, not paper profit
Fin. Strength 25
Balance sheet, leverage, solvency risk
Investment 70
Disciplined investing over empire-building
Low Volatility 77
Calm price path (market factor)
Momentum 77
Price trend over the last 3–12 months (market factor)
52W Momentum 96
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

Telecom Italia S.p.A., together with its subsidiaries, engages in the fixed and mobile telecommunications services and products for individuals, households, and supports small and medium-sized enterprises in Italy and internationally. It operates through Domestic, Brazil, and Other Operations segments.

Full company description

Telecom Italia S.p.A., together with its subsidiaries, engages in the fixed and mobile telecommunications services and products for individuals, households, and supports small and medium-sized enterprises in Italy and internationally. It operates through Domestic, Brazil, and Other Operations segments. The company offers telephone and internet services, as well as products managed and developed in landline and mobile for individuals and families; voice, data, and internet services and products; and information and communications technology solutions for top, public sector and large account customers. It also provides connectivity services; mobile phone services and fiber optic data transmission using IP technology and residential broadband services; and internet of things services. Telecom Italia S.p.A. was incorporated in 1908 and is headquartered in Rome, Italy.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Telecom Italia S.p.A. reported revenue of €13.7B in FY2025 versus €15.3B in FY2021, a compound −2.7%/yr. Reported net income was €297M in FY2025.

Growth Quality 55/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€13.7B
Latest YoY
+0.6%
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.
−4.5%
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.
−2.8%
Avg. revenue growth/yr (27Y) 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.
−2.3%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
−39.1% (−40.7 + 1.6)
Revenue −2.7%/yr
FY21 €15.3B
FY22 €15.8B
FY23 €16.3B
FY24 €13.7B
FY25 €13.7B
Net income
FY21 −€8.4B
FY22 −€2.7B
FY23 −€1.4B
FY24 −€610M
FY25 €297M

TIT screens 172% overvalued. Compare with China Mobile Limited →

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Cite: Fair Value Calculator (2026). "Telecom Italia S.p.A. Fair Value". https://www.fairvalue-calculator.com/stock/TIT

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 45 · Below median
Fair Value upside −63% · Bottom 25%
Return on equity (TTM) 3% · Below median
Return on assets 2% · Below median
Net margin (TTM) 1% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth 1% · Below median
Dividend yield (TTM) 1.6% · Below median
Debt / equity 0.62× · Higher than median

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 43.1× · Pricier than 75% of peers
P/B 1.63× · Pricier than median
P/S (TTM) 1.44× · Pricier than median
P/FCF 537.5× · Pricier than 75% of peers
EV/EBITDA 7.0× · Pricier than median
PEG 7.50× · 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
PAST12 · sector 28
HEALTH69 · sector 89
DIVIDEND32 · 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 Sep 1, 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 Telecom Italia S.p.A. (TIT) overvalued or undervalued?
As of Sep 1, 2026, our model estimates a fair value of €2.85 versus a price of €7.75, about −63% upside (overvalued).
What is the fair value of TIT?
Our model-based fair value for Telecom Italia S.p.A. is €2.85 (as of Sep 1, 2026), built from audited fundamentals. The current price: €7.75.
What is the quality score of TIT?
Telecom Italia S.p.A. has a Quality Score of 45/100. 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 Telecom Italia S.p.A. (TIT)?
Telecom Italia S.p.A. reported trailing-twelve-month revenue of about €13.9B (latest available figure, as of Sep 1, 2026).
What is the net profit margin of TIT?
The net profit margin of Telecom Italia S.p.A. is about 0.9%, meaning it keeps roughly 0.9% of revenue as net income. Based on the latest reported figures.
Does Telecom Italia S.p.A. pay a dividend?
Telecom Italia S.p.A. currently shows a dividend yield of about 1.59% relative to its recent price (as of Sep 1, 2026).
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