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Terna SpATERRF 85 Degree of Operating Leverage is 0.29 as of Jun. 2026. GuruFocus rates TERRF with a GF Score™ of 85/100 and a GF Value™ of $15.06 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 493 Utilities - Regulated companies, Terna SpA ranks better than 60.85% on this metric.
Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
Terna SpA's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 0.29. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for Terna SpA's Degree of Operating Leverage or its related term are showing as below:
TERRF's Degree of Operating Leverage is ranked better than 60.85% of 493
companies
in the Utilities - Regulated industry
Industry Median: 0.74
vs TERRF: 0.29
Terna SpA (OTCPK:TERRF) 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.
Terna SpA Degree of Operating Leverage Related Terms
Terna SpA Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for Terna SpA'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.
TERRF vs NEE, SO, DUK: Degree of Operating Leverage Comparison
For the Utilities - Regulated Electric subindustry, Terna SpA'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.
Terna SpA Degree of Operating Leverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Terna SpA's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where Terna SpA'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 0.29 mean?
Terna SpA (TERRF) has a Degree of Operating Leverage of 0.29 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 Terna SpA and its competitors. According to the industry distribution chart, Terna SpA ranks #193 out of 493 companies in the Utilities - Regulated industry, placing it in the top 39.1%.
Is Terna SpA's Degree of Operating Leverage too high?
Terna SpA's current Degree of Operating Leverage is 0.29. The Utilities - Regulated industry median Degree of Operating Leverage is 0.74. Terna SpA's value of 0.29 is 60.8% below this industry median. Based on the distribution chart, Terna SpA ranks #193 out of 493 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, Terna SpA has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Terna SpA's Degree of Operating Leverage compare to NEE and SO?
According to the Utilities - Regulated industry distribution chart, Terna SpA ranks #193 out of 493 companies for Degree of Operating Leverage. This puts Terna SpA in the upper half of its industry. The industry median Degree of Operating Leverage is 0.74. Terna SpA's value of 0.29 is 60.8% below this benchmark. 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 an Utilities - Regulated company?
The median Degree of Operating Leverage among Utilities - Regulated companies is 0.74, based on 493 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. Terna SpA's current Degree of Operating Leverage of 0.29 is 60.8% below the industry median. 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 Terna SpA and its competitors. For the Utilities - Regulated industry, the median Degree of Operating Leverage is 0.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Terna SpA's current Degree of Operating Leverage is 0.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Terna SpA stock overvalued right now?
Based on GuruFocus' analysis, Terna SpA (TERRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $15.06, compared to a current price of $10.95 — trading 27.3% below its estimated fair value. The current Degree of Operating Leverage is 0.29 and 60.8% below the Utilities - Regulated industry median of 0.74. Terna SpA's overall GF Score™ is 85/100 with 2 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 Terna SpA (TERRF), the current Degree of Operating Leverage is 0.29 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 Terna SpA (TERRF) Overvalued in 2026?
Based on GuruFocus' analysis, Terna SpA stock appears to be undervalued.
The current stock price of $10.95 is trading 27.3% below its estimated GF Value™ of $15.06.
GuruFocus considers Terna SpA to be Modestly Undervalued.
Key valuation signals for TERRF:
Degree of Operating Leverage: 0.29
GF Value™: $15.06 vs. price of $10.95 (27.3% below fair value)
Industry Position: 60.8% below the Utilities - Regulated median (#193 of 493)
No single metric tells the full story. See the TERRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Terna SpA is an electricity transmission system operator that owns virtually all of the Italian National Transmission Grid. With a monopoly under an Italian government license, Terna transmits and dispatches electricity throughout the country. It is also responsible for the planning, construction, and maintenance of the nation's electrical grid. Terna segments its operations into its Regulated Activities, Non-Regulated Activities, and International Activities. The company generates the vast majority of its revenue from charging transmission fees as a part of its Regulated Activities. Under its Non-Regulated Activities, Terna mainly produces and sells electricity transformers. The company has also made efforts to expand its operations into Italy's neighboring countries and North Africa.
85GF Score
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