Telecom Italia SpA (MIL:TIT) Effective Interest Rate on Debt %: 13.07% (As of Mar. 2026)


MIL:TIT Telecom Italia SpA MIL:TIT
45 GF Score
Price €8.00
GF Value €2.36
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Telecom Italia SpA Effective Interest Rate on Debt %?

Telecom Italia SpA MIL:TIT -0.65% 45 Effective Interest Rate on Debt % is 13.07% as of Mar. 2026. GuruFocus rates MIL:TIT with a GF Score™ of 45/100 and a GF Value™ of €2.36 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Telecom Italia SpA's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was €1,820 Mil. Telecom Italia SpA's average total debt for the quarter that ended in Mar. 2026 was €13,930 Mil. Therefore, Telecom Italia SpA's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 13.07%.

Telecom Italia SpA  (MIL:TIT) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.

Telecom Italia SpA Effective Interest Rate on Debt % Related Terms

Telecom Italia SpA Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Telecom Italia SpA's Effective Interest Rate on Debt % 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 Italia SpA Effective Interest Rate on Debt % Chart

Telecom Italia SpA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.82 4.17 4.97 5.84 6.85

Telecom Italia SpA Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.40 -0.62 27.30 -13.72 13.07

MIL:TIT vs TMUS, VZ, T: Effective Interest Rate on Debt % Comparison

For the Telecom Services subindustry, Telecom Italia SpA's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Italia SpA Effective Interest Rate on Debt % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telecom Italia SpA's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Telecom Italia SpA's Effective Interest Rate on Debt % falls into.


MIL:TIT
45GF Score
Telecom Italia SpA MIL:TIT
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Telecom Italia SpA Effective Interest Rate on Debt % Calculation

Telecom Italia SpA's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -957/( (14717+13224)/ 2 )
=-1  *  -957/13970.5
=6.85 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10649 + 4068
=14717

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10024 + 3200
=13224

Telecom Italia SpA's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -1820/( (13224+14636)/ 2 )
=-1  *  -1820/13930
=13.07 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=10024 + 3200
=13224

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=11458 + 3178
=14636

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 13.07% mean?
Telecom Italia SpA (MIL:TIT) has a Effective Interest Rate on Debt % of 13.07% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Telecom Italia SpA and its competitors.
Is Telecom Italia SpA's Effective Interest Rate on Debt % too high?
Telecom Italia SpA's current Effective Interest Rate on Debt % is 13.07%. Overall, Telecom Italia SpA has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telecom Italia SpA's Effective Interest Rate on Debt % compare to TMUS and VZ?
Telecom Italia SpA's Effective Interest Rate on Debt % of 13.07% can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Telecommunication Services company?
A good Effective Interest Rate on Debt % depends on the Telecommunication Services industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Telecom Italia SpA and its competitors. Telecom Italia SpA's current Effective Interest Rate on Debt % is 13.07%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telecom Italia SpA stock overvalued right now?
Based on GuruFocus' analysis, Telecom Italia SpA (MIL:TIT) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.36, compared to a current price of €8.00 — trading 239% above its estimated fair value. The current Effective Interest Rate on Debt % is 13.07%. Telecom Italia SpA's overall GF Score™ is 45/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Telecom Italia SpA (MIL:TIT), the current Effective Interest Rate on Debt % is 13.07% as of Mar. 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 Italia SpA (MIL:TIT) Overvalued in 2026?

Based on GuruFocus' analysis, Telecom Italia SpA stock appears to be overvalued. The current stock price of €8.00 is trading 239% above its estimated GF Value™ of €2.36. GuruFocus considers Telecom Italia SpA to be Significantly Overvalued.

Key valuation signals for MIL:TIT:

  • Effective Interest Rate on Debt %: 13.07%
  • GF Value™: €2.36 vs. price of €8.00 (239% above fair value)
  • GF Score™: 45/100 with 9 warning signs

No single metric tells the full story. See the MIL:TIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Telecom Italia SpA Business Description

Address Via di Val Cannuta, No. 182, Roma, ITA, 00166
Telecom Italia is the incumbent telecommunications operator in Italy, with 23% share in the Italian mobile market and 35% share in broadband. In the mobile market, it competes with Vodafone, WindTre, and Iliad. After the sale of its fixed network to KKR for EUR 18.8 billion in 2024, TIM has become a pure service provider with no network ownership. TIM Brazil is significantly smaller than its peers, Telefonica and America Movil, with 25% wireless market share.
45GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€8.00
Price
€2.36
GF Value