TEFOF (Telefonica) Moat Score: 5/10 (As of Jul. 03, 2026)


TEFOF Telefonica SA TEFOF
65 GF Score
Price $3.94
GF Value $4.12
Valuation Fairly Valued
! 7 Warning Signs
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What is Telefonica Moat Score?

Telefonica TEFOF -1.50% 65 Moat Score is 5 as of Jul. 03, 2026. GuruFocus rates TEFOF with a GF Score™ of 65/100 and a GF Value™ of $4.12 (Fairly Valued). The stock has 7 warning signs investors should review. Among 388 Telecommunication Services companies, Telefonica ranks better than 85.82% on this metric.

Telefonica has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Telefonica has Narrow Moat: Telefonica has a solid narrow moat due to its established market position and regulatory barriers in telecommunications. It benefits from economies of scale and a strong distribution network. However, intense competition limits its pricing power and brand strength.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Telefonica might have Narrow Moat - Solid narrow moat.

Telefonica  (OTCPK:TEFOF) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Telefonica Moat Score Related Terms

TEFOF vs TMUS, VZ, T: Moat Score Comparison

For the Telecom Services subindustry, Telefonica's Moat Score, along with its competitors' market caps and Moat Score 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.

Telefonica Moat Score vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Telefonica's Moat Score distribution charts can be found below:

* The bar in red indicates where Telefonica's Moat Score falls into.


TEFOF
65GF Score
Telefonica SA TEFOF
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Telefonica (TEFOF) has a Moat Score of 5 as of Jul. 03, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Telefonica ranks #55 out of 388 companies in the Telecommunication Services industry, placing it in the top 14.2%.
Is Telefonica's Moat Score too high?
Telefonica's current Moat Score is 5. Based on the distribution chart, Telefonica ranks #55 out of 388 companies in the Telecommunication Services industry, which is in the top quartile — a strong position relative to peers. Overall, Telefonica has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica's Moat Score compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica ranks #55 out of 388 companies for Moat Score. This places Telefonica in the top 14% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for a Telecommunication Services company?
A good Moat Score depends on the Telecommunication Services industry context. However, Moat Score 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 Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Telefonica's current Moat Score is 5. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica stock overvalued right now?
Based on GuruFocus' analysis, Telefonica (TEFOF) is currently considered Fairly Valued. The stock's GF Value™ is $4.12, compared to a current price of $3.94 — trading 4.4% below its estimated fair value. The current Moat Score is 5. Telefonica's overall GF Score™ is 65/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Telefonica (TEFOF), the current Moat Score is 5 as of Jul. 03, 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 Telefonica (TEFOF) Overvalued in 2026?

Based on GuruFocus' analysis, Telefonica stock appears to be undervalued. The current stock price of $3.94 is trading 4.4% below its estimated GF Value™ of $4.12. GuruFocus considers Telefonica to be Fairly Valued.

Key valuation signals for TEFOF:

  • Moat Score: 5
  • GF Value™: $4.12 vs. price of $3.94 (4.4% below fair value)
  • GF Score™: 65/100 with 7 warning signs

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

Telefonica Business Description

Address Ronda de la Comunicacion, s/n, Central Building Auditorium, Telefonica District, Madrid, ESP, 28050
Telefonica is a telecommunications operator with presence in Spain (where it is the incumbent operator), the UK, Germany, Brazil, and Latin American countries. The company derives more than 30% of its revenue from Spain, close to 20% from Germany, and 20% from Brazil. Its UK operations are held through a joint venture with Virgin Media. For several years, Telefonica has been simplifying its corporate structure by selling noncore assets.
65GF Score

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$3.94
Price
$4.12
GF Value