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Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in Earnings Before Interest and Taxes (EBIT).
Telecom Argentina's Degree of Financial Leverage for the quarter that ended in Jun. 2026 was -1.67. The higher Degree of Financial Leverage, the more volatile earnings will be.
The industry rank for Telecom Argentina's Degree of Financial Leverage or its related term are showing as below:
BUE:TECO2's Degree of Financial Leverage is ranked better than 88.83% of 358
companies
in the Telecommunication Services industry
Industry Median: 0.99
vs BUE:TECO2: -1.67
Telecom Argentina (BUE:TECO2) Degree of Financial Leverage Explanation
Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.
The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.
Be Aware
The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.
Telecom Argentina Degree of Financial Leverage Related Terms
Telecom Argentina Degree of Financial Leverage Historical Data
* Premium members only.
The historical data trend for Telecom Argentina's Degree of Financial Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Telecom Argentina Degree of Financial Leverage Chart
BUE:TECO2 vs VZ, TMUS, T: Degree of Financial Leverage Comparison
For the Telecom Services subindustry, Telecom Argentina's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telecom Argentina Degree of Financial Leverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telecom Argentina's Degree of Financial Leverage distribution charts can be found below:
* The bar in red indicates where Telecom Argentina's Degree of Financial Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Financial Leverage of -1.67 mean?
Telecom Argentina (BUE:TECO2) has a Degree of Financial Leverage of -1.67 as of Jun. 2026. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Telecom Argentina and its competitors. According to the industry distribution chart, Telecom Argentina ranks #40 out of 358 companies in the Telecommunication Services industry, placing it in the top 11.2%.
Is Telecom Argentina's Degree of Financial Leverage too high?
Telecom Argentina's current Degree of Financial Leverage is -1.67. Based on the distribution chart, Telecom Argentina ranks #40 out of 358 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Telecom Argentina has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telecom Argentina's Degree of Financial Leverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Telecom Argentina ranks #40 out of 358 companies for Degree of Financial Leverage. This places Telecom Argentina in the top 11% of its industry — outperforming the majority of peers. The industry median Degree of Financial Leverage is 0.99. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Financial Leverage for a Telecommunication Services company?
The median Degree of Financial Leverage among Telecommunication Services companies is 0.99, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Financial Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Financial Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Financial Leverage mean?
A high Degree of Financial Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in EBIT. View historical data for Telecom Argentina and its competitors. For the Telecommunication Services industry, the median Degree of Financial Leverage is 0.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telecom Argentina's current Degree of Financial Leverage is -1.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telecom Argentina stock overvalued right now?
Based on GuruFocus' analysis, Telecom Argentina (BUE:TECO2) is currently considered Modestly Overvalued. The stock's GF Value™ is ARS3,638.81, compared to a current price of ARS4,185.00 — trading 15% above its estimated fair value. The current Degree of Financial Leverage is -1.67. Telecom Argentina's overall GF Score™ is 84/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Financial Leverage calculated?
Degree of Financial Leverage is calculated from a company's financial statements. For Telecom Argentina (BUE:TECO2), the current Degree of Financial Leverage is -1.67 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telecom Argentina (BUE:TECO2) Overvalued in 2026?
Based on GuruFocus' analysis, Telecom Argentina stock appears to be overvalued.
The current stock price of ARS4,185.00 is trading 15% above its estimated GF Value™ of ARS3,638.81.
GuruFocus considers Telecom Argentina to be Modestly Overvalued.
Key valuation signals for BUE:TECO2:
Degree of Financial Leverage: -1.67
GF Value™: ARS3,638.81 vs. price of ARS4,185.00 (15% above fair value)
No single metric tells the full story. See the BUE:TECO2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telecom Argentina SA offers its customers quadruple play services, combining mobile telephony services, cable television services, Internet services and fixed telephony services. It also provides other telephone-related services such as international long-distance and wholesale services, data transmission and IT solutions outsourcing and install, operate and develop cable television and data transmission services. The company operates in segments: ICT Services provided in Argentina: Personal Network; ICT Services provided in Argentina - TMA Network; and Other segments..
84GF Score
Get the complete analysis for BUE:TECO2
Degree of Financial Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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