Rankings Software, cloud & internet Deutsche Telekom
Deutsche Telekom
97
15070100
A view of the same findings, not a new score. How it works
In the 70+ zone: a score above 70 with more than 20% upside to the median analyst target.
Biggest deductions
- Competition in the US−4
- Merger plans and capital allocation−4
- Quality of growth−3
Strengths
- Dividend and buybacks+3
- Raised guidance+2
How the score is built
From 100 to 97, step by step: points off for the business, the price and the cracks, back for documented strengths, then three data adjustments.
Start
Score
Hover or select a step to see what drove it. Steps with findings open them below.
Key numbers
As of 3 Nov 2026. Analyst targets tend to be optimistic; read upside as a hint, not a forecast.
- Price
- 25.91 EUR
- Median analyst target
- 36.75 EUR
- Upside to median
- +41.8%
- Analysts
- 18
- Target range
- 28.10 – 43.00 EUR
- 52-week change
- −4%
- P/E (trailing)
- 14.5
- Forward P/E
- 10.7
- PEG
- 0.71
Findings
Every deduction and every plus, with its source. Open a step to read them.
Business
Is the company getting stronger, not just bigger? · 3 findings−8 of −30
- −3Quality of growthRevenue grew only 2.2% TTM and is expected at +1.2% in 2026; Europe grew 1.0% organically in Q2, and Germany's +3.7% was lifted by World Cup broadcasts. Reported EPS has fallen three years in a row (3.57 → 2.27 → 1.97 → 1.79).
- −2ROICROIC 8.5% TTM (5.0–8.3% in 2021–2025) in a capital-intensive grid business with 11.9 bn EUR in annual capex; the improvement is real, but the return is moderate.
- −3Dependence on T-Mobile USThe US accounts for 79 of EUR 123bn in revenue (64%), and the stake in TMUS makes up about 60% of the market cap; the rest of the group (Germany, Europe, T-Systems) is a low-growth telecom. The share is in practice a holding structure at a discount on one US stock.
Price
Today's multiples against the company's own history and its peers. · 2 findings−3 of −35
- −1Multiples vs own historyForward P/E 11.1 vs 11.4–14.3 in 2021–2025 and EV/EBITDA 6.2 vs 7.1–8.5; the stock is at the bottom of its own range after −7.8% in a year. Historically cheap, but it reflects the decline in TMUS.
- −2FCF yieldStockanalysis' FCF yield of 22.6% is distorted by the consolidation of TMUS' minority; on the company's FCF AL of about EUR 20bn the yield is about 15.6%, and really lower, since 47% of TMUS' cash flow belongs to other shareholders.
Cracks
Cash flow, customers, debt, insiders, guidance and what sits behind the headline numbers. · 3 findings−10 of −35
- −4Competition in the USThe TMUS share has fallen 31% over a year: Verizon's 'Value Pivot' with price cuts and a three-year price guarantee presses price growth of 2.5–3% per account, and TMUS has stopped reporting postpaid phone additions. The main asset is under real competitive pressure.
- −4Merger plans and capital allocationCEO Höttges has since April 2026 been working on a full merger with T-Mobile US, which requires backing from the minority and the German state, and US authorities are expected to require that the money stays in the US. Elliott has bought a stake and opposes the plan in favour of larger buybacks; unresolved strategy and risk of value-destroying share issuance.
- −2DebtNet debt EUR 141bn including leases, debt/EBITDA 3.1x, interest cover 4.0x and Altman Z-score 1.13; heavy balance sheet if interest rates rise or TMUS has to finance further spectrum and fibre purchases.
Plus
Only documented strengths. · 2 findings+5 of +15
- +2Raised guidanceQ2: adjusted EBITDA AL +7.3% organic to 11.8 bn, adjusted net income +11.1%; FCF AL guidance for 2026 raised to about 20 bn EUR (from over 19.8 bn), EBITDA AL guidance about 47.5 bn (raised in May).
- +3Dividend and buybacksDividend 6.9bn + buybacks EUR 2.1bn (TTM) = 9.0bn, below FCF AL of about 20bn; dividend raised 11% (fourth year in a row) and share count −1.3% over a year.
Caveats
What the score does not capture, or where the data is weak.
Telecom (no suitable industry; nearest chosen as for Telenor). T-Mobile US (53.1% owned, about 64% of revenue) is fully consolidated, so stockanalysis' FCF (28.9bn) and P/FCF 4.4 include the minority's share; the company's FCF AL is about 20bn. The stake in TMUS is about USD 94bn (about EUR 80bn) of a market cap of EUR 128bn. Reported EPS is distorted by one-off gains in 2023. The state's ownership and German regulation (fibre, spectrum) have not been investigated. Q3 results 5 Nov.
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