Telstra GroupTLGPY +4.03%74 FCF Yield % is 6.39 as of Jun. 25, 2026, which is 3% below its 10-year median of 6.61. GuruFocus rates TLGPY with a GF Score™ of 74/100 and a GF Value™ of $15.94 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 371 Telecommunication Services companies, Telstra Group ranks better than 56.87% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Telstra Group FCF Yield % Related Terms
Telstra Group FCF Yield % Historical Data
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The historical data trend for Telstra Group's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telstra Group's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Telstra Group's FCF Yield % 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.
Telstra Group (TLGPY) has a FCF Yield % of 6.39 as of Jun. 25, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Telstra Group and its competitors. This is near median its historical median of 6.61. Over the past decade, Telstra Group's FCF Yield % has ranged from 3.50 to 11.29. According to the industry distribution chart, Telstra Group ranks #160 out of 371 companies in the Telecommunication Services industry, placing it in the top 43.1%.
Is Telstra Group's FCF Yield % too high?
Telstra Group's current FCF Yield % of 6.39 is near median its 10-year median of 6.61. Over the past 10 years, this metric has ranged from a low of 3.50 to a high of 11.29. The Telecommunication Services industry median FCF Yield % is 5.53. Telstra Group's value of 6.39 is 15.6% above this industry median. Based on the distribution chart, Telstra Group ranks #160 out of 371 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telstra Group has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telstra Group's FCF Yield % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telstra Group ranks #160 out of 371 companies for FCF Yield %. This puts Telstra Group in the upper half of its industry. The industry median FCF Yield % is 5.53. Telstra Group's value of 6.39 is 15.6% above this benchmark. Historically, Telstra Group's own FCF Yield % has ranged from 3.50 to 11.29 over the past decade. While the company's 10-year median is 6.61 vs. the industry median of 5.53, 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 FCF Yield % for a Telecommunication Services company?
The median FCF Yield % among Telecommunication Services companies is 5.53, based on 371 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telstra Group's current FCF Yield % of 6.39 is 15.6% 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 FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Telstra Group and its competitors. For the Telecommunication Services industry, the median FCF Yield % is 5.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telstra Group's current FCF Yield % is 6.39, which is near median its own 10-year median of 6.61. 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 (TLGPY) is currently considered Modestly Overvalued. The stock's GF Value™ is $15.94, compared to a current price of $18.34 — trading 15.1% above its estimated fair value. The current FCF Yield % is 6.39, which is near median its 10-year median of 6.61 and 15.6% above the Telecommunication Services industry median of 5.53. Telstra Group's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Telstra Group (TLGPY), the current FCF Yield % is 6.39 as of Jun. 25, 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 (TLGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Telstra Group stock appears to be overvalued.
The current stock price of $18.34 is trading 15.1% above its estimated GF Value™ of $15.94.
GuruFocus considers Telstra Group to be Modestly Overvalued.
Key valuation signals for TLGPY:
FCF Yield %: 6.39 (near median its 10-year median of 6.61)
GF Value™: $15.94 vs. price of $18.34 (15.1% above fair value)
Industry Position: 15.6% above the Telecommunication Services median (#160 of 371)
No single metric tells the full story. See the TLGPY 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.
74GF Score
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