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Telstra GroupASX:TLS -0.60%78 EV-to-EBIT is 18.55 as of Jul. 23, 2026, which is 8% above its 10-year median of 17.12. GuruFocus rates ASX:TLS with a GF Score™ of 78/100 and a GF Value™ of A$4.42 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 282 Telecommunication Services companies, Telstra Group ranks worse than 70.21% on this metric.
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Telstra Group's Enterprise Value for the quarter that ended in Dec. 2025 was A$74,535 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Telstra Group's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$4,024 Mil.
* 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.
Telstra Group EV-to-EBIT Related Terms
Telstra Group EV-to-EBIT Historical Data
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The historical data trend for Telstra Group's EV-to-EBIT 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.
For the Telecom Services subindustry, Telstra Group's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Telstra Group's EV-to-EBIT falls into.
Telstra Group's current Enterprise Value is A$74,639 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Telstra Group's EBIT for the trailing twelve months (TTM) ended in Dec. 2025 was A$4,024 Mil.
* 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.
Telstra Group (ASX:TLS) has a EV-to-EBIT of 18.55 as of Jul. 23, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Telstra Group and its competitors. This is near median its historical median of 17.12. Over the past decade, Telstra Group's EV-to-EBIT has ranged from 7.48 to 24.59. According to the industry distribution chart, Telstra Group ranks #198 out of 282 companies in the Telecommunication Services industry, placing it in the top 70.2%.
Is Telstra Group's EV-to-EBIT too high?
Telstra Group's current EV-to-EBIT of 18.55 is near median its 10-year median of 17.12. Over the past 10 years, this metric has ranged from a low of 7.48 to a high of 24.59. The Telecommunication Services industry median EV-to-EBIT is 13.27. Telstra Group's value of 18.55 is 39.8% above this industry median. Based on the distribution chart, Telstra Group ranks #198 out of 282 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telstra Group has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's EV-to-EBIT compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #198 out of 282 companies for EV-to-EBIT. This places Telstra Group in the lower half of its industry. The industry median EV-to-EBIT is 13.27. Telstra Group's value of 18.55 is 39.8% above this benchmark. Historically, Telstra Group's own EV-to-EBIT has ranged from 7.48 to 24.59 over the past decade. While the company's 10-year median is 17.12 vs. the industry median of 13.27, Telstra Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-EBIT for a Telecommunication Services company?
The median EV-to-EBIT among Telecommunication Services companies is 13.27, based on 282 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telstra Group's current EV-to-EBIT of 18.55 is 39.8% above 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Telstra Group and its competitors. For the Telecommunication Services industry, the median EV-to-EBIT is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telstra Group's current EV-to-EBIT is 18.55, which is near median its own 10-year median of 17.12. 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$4.42, compared to a current price of A$4.93 — trading 11.5% above its estimated fair value. The current EV-to-EBIT is 18.55, which is near median its 10-year median of 17.12 and 39.8% above the Telecommunication Services industry median of 13.27. Telstra Group's overall GF Score™ is 78/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Telstra Group (ASX:TLS), the current EV-to-EBIT is 18.55 as of Jul. 23, 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$4.93 is trading 11.5% above its estimated GF Value™ of A$4.42.
GuruFocus considers Telstra Group to be Modestly Overvalued.
Key valuation signals for ASX:TLS:
EV-to-EBIT: 18.55 (near median its 10-year median of 17.12)
GF Value™: A$4.42 vs. price of A$4.93 (11.5% above fair value)
Industry Position: 39.8% above the Telecommunication Services median (#198 of 282)
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.
78GF Score
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