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Telstra GroupASX:TLS +0.63%76 Degree of Operating Leverage is -0.81 as of Jun. 2026. GuruFocus rates ASX:TLS with a GF Score™ of 76/100 and a GF Value™ of A$4.21 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 358 Telecommunication Services companies, Telstra Group ranks better than 66.2% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Telstra Group's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was -0.81. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Telstra Group's Degree of Operating Leverage or its related term are showing as below:
ASX:TLS's Degree of Operating Leverage is ranked better than 66.2% of 358
companies
in the Telecommunication Services industry
Industry Median: 0.91
vs ASX:TLS: -0.81
Telstra Group (ASX:TLS) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
Telstra Group Degree of Operating Leverage Related Terms
Telstra Group Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Telstra Group's Degree of Operating 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.
ASX:TLS vs VZ, TMUS, T: Degree of Operating Leverage Comparison
For the Telecom Services subindustry, Telstra Group's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating 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.
Telstra Group Degree of Operating Leverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Telstra Group's Degree of Operating 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 EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating 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 Operating Leverage of -0.81 mean?
Telstra Group (ASX:TLS) has a Degree of Operating Leverage of -0.81 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Telstra Group and its competitors. According to the industry distribution chart, Telstra Group ranks #121 out of 358 companies in the Telecommunication Services industry, placing it in the top 33.8%.
Is Telstra Group's Degree of Operating Leverage too high?
Telstra Group's current Degree of Operating Leverage is -0.81. Based on the distribution chart, Telstra Group ranks #121 out of 358 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telstra Group has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's Degree of Operating Leverage compare to VZ and TMUS?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #121 out of 358 companies for Degree of Operating Leverage. This puts Telstra Group in the upper half of its industry. The industry median Degree of Operating Leverage is 0.91. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Telecommunication Services company?
The median Degree of Operating Leverage among Telecommunication Services companies is 0.91, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating 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 Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Telstra Group and its competitors. For the Telecommunication Services industry, the median Degree of Operating Leverage is 0.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telstra Group's current Degree of Operating Leverage is -0.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telstra Group stock overvalued right now?
Based on GuruFocus' analysis, Telstra Group (ASX:TLS) is currently considered Modestly Overvalued. The stock's GF Value™ is A$4.21, compared to a current price of A$4.81 — trading 14.3% above its estimated fair value. The current Degree of Operating Leverage is -0.81. Telstra Group's overall GF Score™ is 76/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Telstra Group (ASX:TLS), the current Degree of Operating Leverage is -0.81 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 Telstra Group (ASX:TLS) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of A$4.81 is trading 14.3% above its estimated GF Value™ of A$4.21.
GuruFocus considers Telstra Group to be Modestly Overvalued.
Key valuation signals for ASX:TLS:
Degree of Operating Leverage: -0.81
GF Value™: A$4.21 vs. price of A$4.81 (14.3% above fair value)
No single metric tells the full story. See the ASX:TLS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telstra is Australia's largest telecommunications company, with dominant market shares in voice, mobile, enterprise telecom, and fixed-line broadband resale via the national broadband network. Telstra provides most of its services via its infrastructure assets, such as a fixed-line network (data centers, exchanges, poles, ducts, pits and pipes, fiber network), a mobile network, and mobile towers. Its customers span retail, corporate, government, wholesale, and overseas segments. Telstra also provides the government-owned, last-mile fixed-line National Broadband Network with long-term access to its infrastructure, in return for recurring payments. Finally, Telstra operates a leading telecom operation in Papua New Guinea and the surrounding South-Pacific countries.
76GF Score
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