Telefonica SA (tef) Stock Research
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Long Term Rating 
Business Survey
Generic Strategy
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Narrow Scope |
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Broad Scope |
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| None |
Uniqueness Low Cost |
Generic strategies categorize companies by the scope and the strength of their business. Telefonica SA does not have a definable strategy, therefore, it risks losing out to firms that concentrate on one particular competitive advantage. (read more).
Company Description: Telefonica, S.A. provides fixed and mobile telephone network services in Europe and Latin America. Telefonica provides a variety of services from domestic long distance to broadband internet and cable television. Update
Market Research
Telecom Industry Research & Analysis: The telecom industry includes companies who help transmit information for the purposes of communication. Telecom Trading Strategy: The telecom industry tends to be sensitive to economic cycles. Look for undervalued telecom investments during economic recessions when stock prices are low and sell telecom investments during the late stages of a bull markets when stock prices are high. The global economy is currently in a recession, therefore, it is the perfect time to purchase telecom investments. Upward sloping stock charts and financial news may indicate a selling opportunity while the opposite means that stocks are becoming undervalued.
Industry Sub Sector: . Telefonica SA is a dominant industry leader due to its personnel, experience and financial strengths. Industry leaders are difficult to compete against, which decreases business and investor risks. The market is quickly expanding. This lowers the threat of direct competition and increases Telefonica SA's profits.
Market Challenges: Opportunities: Solutions:
Strategy Analysis
Telefonica SA's business strategy is to keep things simple. Clearly-defined strategies lower business risks by staying within their areas of expertise. Telefonica SA's strategy is to accomplish clear, attainable, and challenging goals. This focus increases company value and long-term investor returns.
Strategy: Competitive Advantages:
Financial Analysis
Current Revenue Sources: Future Revenue Sources:
I would like to ask the source of the data, since I have done a similar calculation for Telefonica but with very different figures taken from Yahoo Finance and stock-analysis-on.net:
Free cash flow (M$): 2006 = 14250, 2007 = 16485, 2008 = 15153, 2009 = 14188, 2010 = 11925
Residual value (counting only assets from financial statement, M$) = 172207
Num. shares: 4,563,996,485
My price/share calculation gives $22.8, which is pretty close to the results presented here, although with very differebt data.
Hello Carlos, We used the the original financial statements in the local currency to determine the valuation. It is best never to use yahoo finance. Their data is wrong 100% of the time. The difference in our data is probably related to the currency and being used. This is always a problem with international companies.
I hope this helps, Dave
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