0.19%
10.90%
15.45%
35.02%
42.32%
92.56%
120.97%

Company Description

Deutsche Telekom AG, together with its subsidiaries, provides integrated telecommunication services.The company operates through five segments: Germany, United States, Europe, Systems Solutions, and Group Development.It offers fixed-network services, including voice and data communication services based on fixed-network and broadband technology; and sells terminal equipment and other hardware products, as well as services to resellers.


The company also provides mobile voice and data services to consumers and business customers; sells mobile devices and other hardware products; and sells mobile services to resellers and to companies that purchases and markets network services to third parties, such as mobile virtual network operators.In addition, it offers internet services; internet-based TV products and services; and information and communication technology systems for multinational corporations and public sector institutions with an infrastructure of data centers and networks under the T-Systems brand, as well as call center services.The company has 242 million mobile customers and 22 million broadband customers, as well as 27 million fixed-network lines.


Deutsche Telekom AG has a collaboration with VMware, Inc.on cloud-based open and intelligent virtual RAN platform to bring agility to radio access networks for existing LTE and future 5G networks; and partnership with Microsoft to deliver high-performance cloud computing experiences.The company was founded in 1995 and is headquartered in Bonn, Germany.

Market Data

Last Price 32.35
Change Percentage 0.19%
Open 32.39
Previous Close 32.29
Market Cap ( Millions) 161058
Volume 6875148
Year High 32.5
Year Low 20.73
M A 50 29.73
M A 200 26.06

Financial Ratios

FCF Yield 12.98%
Dividend Yield 2.38%
ROE 10.30%
Debt / Equity 78.00%
Net Debt / EBIDTA 68.42%
Price To Book 2.72
Price Earnings Ratio 26.6
Price To FCF 7.7
Price To sales 1.85
EV / EBITDA 3.97

News

Business Breakdown

Expected Mid-Term Growth

Segment nΒ°1 -> United States

Expected Growth : 1.8 %

What the company do ?

Why we expect these perspectives ?

In the United States, Deutsche Telekom AG's 1.8% growth is driven by increasing demand for 5G services, expansion of IoT applications, and growing adoption of cloud-based solutions. Additionally, the company's focus on network modernization and investments in fiber-optic infrastructure are contributing to its growth momentum.

Segment nΒ°2 -> Germany

Expected Growth : 2.2 %

What the company do ?

Why we expect these perspectives ?

Deutsche Telekom AG's 2.2% growth in Germany is driven by increasing demand for high-speed internet and mobile services, fueled by government initiatives for digital infrastructure development and rising adoption of IoT devices. Additionally, the company's focus on 5G network expansion and cost-cutting measures have contributed to its growth momentum.

Segment nΒ°3 -> Europe

Expected Growth : 1.9 %

What the company do ?

Why we expect these perspectives ?

Deutsche Telekom AG's 1.9% growth in Europe is driven by increasing demand for high-speed internet and mobile services, particularly in Germany and Poland. The company's investments in 5G network expansion, fiber-optic infrastructure, and digital transformation initiatives have also contributed to growth. Additionally, the acquisition of Sprint in the US has opened up new opportunities for European customers.

Segment nΒ°4 -> System Solutions

Expected Growth : 2.1 %

What the company do ?

Why we expect these perspectives ?

Deutsche Telekom's System Solutions segment growth of 2.1% is driven by increasing demand for digital transformation, cloud computing, and cybersecurity services. Strong partnerships with industry leaders, investments in 5G and IoT, and expansion into new markets also contribute to growth. Additionally, the segment benefits from the company's focus on innovation, cost savings initiatives, and strategic acquisitions.

Segment nΒ°5 -> Group Headquarters & Group Services

Expected Growth : 1.7 %

What the company do ?

Why we expect these perspectives ?

Deutsche Telekom AG's Group Headquarters & Group Services segment growth of 1.7% is driven by increasing investments in digital transformation, cost savings initiatives, and strategic partnerships. Additionally, the company's focus on 5G network expansion, IoT, and cloud services contributes to growth. Furthermore, the segment benefits from the company's efforts to optimize its organizational structure and streamline operations.

Segment nΒ°6 -> Group Development

Expected Growth : 2.3 %

What the company do ?

Why we expect these perspectives ?

Deutsche Telekom's Group Development segment growth of 2.3% is driven by increasing demand for digital transformation, IoT, and 5G network services. Strong growth in T-Systems' public cloud business, expansion of 5G network infrastructure, and rising adoption of IoT solutions in industries such as manufacturing and logistics also contribute to this growth.

Segment nΒ°7 -> Discontinued Operation

Expected Growth : 0.0 %

What the company do ?

Why we expect these perspectives ?

Deutsche Telekom AG's Discontinued Operations segment shows 0.0% growth, driven by the divestment of non-core assets, lack of investment in declining businesses, and focus on core operations. This stagnation is also attributed to intense competition, regulatory pressures, and declining revenue from legacy services.

Deutsche Telekom Ag Products

Product Range What is it ?
Mobile Communications Deutsche Telekom offers a range of mobile communication services including voice, data, and messaging services to individuals and businesses.
Fixed Network Deutsche Telekom provides fixed-line telecommunications services including broadband internet, voice, and data services to households and businesses.
Internet of Things (IoT) Deutsche Telekom offers IoT solutions and services that enable businesses to connect and manage devices, machines, and sensors.
Cloud Services Deutsche Telekom provides a range of cloud services including infrastructure, platform, and software as a service (IaaS, PaaS, SaaS) to businesses.
Cybersecurity Deutsche Telekom offers a range of cybersecurity solutions and services to protect businesses from cyber threats and attacks.
Digital Solutions Deutsche Telekom provides digital solutions and services including digital transformation consulting, software development, and data analytics.
IT Services Deutsche Telekom offers a range of IT services including IT consulting, system integration, and managed services to businesses.

Deutsche Telekom AG's Porter Forces

Deutsche Telekom AG faces moderate threat from substitutes, as customers have limited alternatives for fixed-line and mobile telecommunications services. However, the increasing popularity of over-the-top (OTT) services and voice-over-internet protocol (VoIP) technology poses a threat to the company's traditional voice and messaging services.

Deutsche Telekom AG has a large customer base, which reduces the bargaining power of individual customers. Additionally, the company's diversified product offerings and strong brand reputation limit customers' ability to negotiate prices or demand customized services.

Deutsche Telekom AG relies on a few large suppliers for network equipment and services. While the company has some bargaining power due to its size and scale, suppliers like Nokia and Ericsson have significant market power, which can impact Deutsche Telekom's negotiating position.

The telecommunications industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and the need for extensive network infrastructure. These barriers limit the threat of new entrants and provide Deutsche Telekom AG with a relatively stable competitive environment.

The German telecommunications market is highly competitive, with several established players like Vodafone, TelefΓ³nica, and Drillisch. Deutsche Telekom AG faces intense competition in terms of pricing, network quality, and service offerings, which can impact its market share and revenue growth.

Capital Structure

Value
Debt Weight 65.40%
Debt Cost 6.15%
Equity Weight 34.60%
Equity Cost 7.02%
WACC 6.45%
Leverage 189.03%

Historical Valuation

Price/Earnings Ratio

Margin Valuation

Peers Valuation

Competitors

Company Rational
T AT&T Inc. provides telecommunications, media, and technology services worldwide. Its Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, and carrying …
VOD.L Vodafone Group Public Limited Company engages in telecommunication services in Europe and internationally. The company offers mobile services that enable customers to call, text, and access data; fixed line services, …
SCMN.SW Swisscom AG provides telecommunication services primarily in Switzerland, Italy, and internationally. It operates through three segments: Swisscom Switzerland, Fastweb, and Other Operating. The company offers mobile and fixed-network services, such …
ORA.PA Orange S.A. provides various fixed telephony and mobile telecommunications, data transmission, and other value-added services to customers, businesses, and other telecommunications operators in France and internationally. It operates through France; …
TEF.MC TelefΓ³nica, S.A., together with its subsidiaries, provides telecommunications services in Europe and Latin America. The company's mobile and related services and products comprise mobile voice, value added, mobile data and …

Peers Metrics

DCF BETA

Parameters

Short Term Growth
Short term Time
Long-Term Growth
WACC
Target Price
32.35$
Current Price
32.35$
Potential
-0.00%

Expected Cash-Flows

Scoring Insights

Peers Group Analysis

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