Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 2.36%, lower than industry average of 9.62%.

Growth Trajectory

Profitability

In the growth phase company makes 14.01% profit on every dollar of sales, lower than industry average of 15.85%.

Profitability Trajectory

Risk Profile

Investors expect at least 5.29% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
172.26B SEK
Equity Value
88.09B SEK
FCF Yield
66.61%
Average ROIC
7.55%
Cost of Capital
5.72%
P/E Ratio
15.05x
Financial MetricMost Recent 12 months (SEK)Previous Year (SEK)
Revenues85.30B SEK89.13B SEK
Operating Income or EBIT12.13B SEK10.63B SEK
Interest Expense4.83B SEK4.83B SEK
Book Value Of Equity49.71B SEK55.44B SEK
Book Value Of Debt90.03B SEK94.38B SEK
Cash and Marketable Securities9.78B SEK10.93B SEK
Number of Shares Outstanding3.93B--
Minority interests3.92B SEK0 SEK
Current Stock Price36.22 SEK--
Effective Tax Rate22.00%--
Marginal Tax Rate20.60%--

Performance vs Industry

Revenue Growth
-13.92%
-4.30%Company
vs
9.62%Industry
Below Industry
Operating Margin
-1.63%
14.21%Company
vs
15.84%Industry
Below Industry
Telia Company AB (publ) faces challenges in both growth and profitability compared to industry peers, which may indicate competitive pressures or operational inefficiencies.

Terminal Value Analysis

Growth Rate
2.25%
Cost of Capital
6.48%
Return on Capital
6.48%
Reinvestment Rate
34.72%
Terminal value represents 62% of total enterprise value, based on 2.25% perpetual growth and 6.48% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 106.47B SEK Add
Present Value (Cash Flow Over Next 10 Years) 65.78B SEK Add
Value of Operating Assets 172.26B SEK Sub-total
Debt 90.03B SEK Subtract
Minority Interests 3.91B SEK Subtract
Cash 9.78B SEK Add
Value of Equity 88.09B SEK Sub-total
Number of Shares 3.93B shares Divisor
Estimated Value per Share (Fair Value) 22.40 SEK Total
Current Market Price 36.22 SEK Reference

Financial Projections

Total FCF Present Value
65.78B SEK
Avg Revenue Growth
2.02%
Avg Operating Margin
13.95%
Avg ROIC
7.55%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue86.31B SEK88.35B SEK90.43B SEK92.57B SEK94.75B SEK96.97B SEK99.21B SEK101.49B SEK103.79B SEK106.13B SEK108.52B SEK
Growth Rate 1.20% 2.35% 2.35% 2.35% 2.35% 2.33% 2.31% 2.29% 2.27% 2.25% 2.25%
PROFITABILITY
Operating Income12.27B SEK12.43B SEK12.66B SEK12.90B SEK13.13B SEK13.44B SEK13.75B SEK14.07B SEK14.39B SEK14.71B SEK15.04B SEK
Operating Margin 14.21% 14.07% 14.00% 13.93% 13.86% 13.86% 13.86% 13.86% 13.86% 13.86% 13.86%
EBIT (1-tax)9.57B SEK9.70B SEK9.87B SEK10.06B SEK10.24B SEK10.52B SEK10.80B SEK11.09B SEK11.38B SEK11.68B SEK11.94B SEK
CASH FLOW
Reinvestment1.07B SEK1.10B SEK1.12B SEK1.15B SEK1.17B SEK2.37B SEK2.41B SEK2.44B SEK2.47B SEK2.52B SEK4.14B SEK
Free Cash Flow8.49B SEK8.59B SEK8.74B SEK8.90B SEK9.07B SEK8.14B SEK8.39B SEK8.65B SEK8.91B SEK9.15B SEK7.79B SEK
Terminal Value--------------------184.36B SEK
Present Value8.06B SEK7.75B SEK7.49B SEK7.24B SEK7.01B SEK5.96B SEK5.81B SEK5.65B SEK5.48B SEK5.28B SEK—
EFFICIENCY
ROIC 7.36% 7.40% 7.47% 7.55% 7.62% 7.76% 7.83% 7.90% 7.97% 8.04% 6.48%
Cost of Capital 5.28% 5.28% 5.28% 5.28% 5.28% 5.52% 5.76% 6.00% 6.24% 6.48% 6.48%
Sales/Capital 1.88x 1.88x 1.88x 1.88x 1.88x 0.94x 0.94x 0.94x 0.94x 0.94x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow (krB)
Reinvestment (krB)