TelefonicaXMAD:TEF +1.44%63 Net Debt Paydown Yield % is 7.36% as of Jul. 12, 2026, which is 121% above its 10-year median of 3.33. GuruFocus rates XMAD:TEF with a GF Score™ of 63/100 and a GF Value™ of €3.77 (Fairly Valued). The stock has 7 warning signs investors should review. Among 348 Telecommunication Services companies, Telefonica ranks better than 84.48% on this metric.
Net Debt Paydown Yield % is a metric that evaluates the total amount of debt a company has paid in relation to its market capitalization. It is a measure of a company's willingness and ability to reduce its debt.
As of today, Telefonica's Net Debt Paydown Yield % was 7.36%.
Telefonica (XMAD:TEF) Net Debt Paydown Yield % Explanation
Net Debt Paydown Yield % is the change in average of four quarters of company's total debt over a company's market cap. Assuming the total value of a company remains that same, shareholder value is increased as debt is reduced. In other words, it is a measure of the willingness and ability of a firm's management to pay down debt. Companies that have high debt paydown yields indicate that they are more aggressive with paying down debt.
In the calculation of Net Debt Paydown Yield %, we use the reductions of TTM average total debt one-year-ago and TTM average total debt at present, divided by its Market Cap.
Telefonica Net Debt Paydown Yield % Historical Data
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The historical data trend for Telefonica's Net Debt Paydown 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.
XMAD:TEF vs TMUS, VZ, T: Net Debt Paydown Yield % Comparison
For the Telecom Services subindustry, Telefonica's Net Debt Paydown Yield %, along with its competitors' market caps and Net Debt Paydown 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.
Telefonica Net Debt Paydown Yield % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica's Net Debt Paydown Yield % distribution charts can be found below:
* The bar in red indicates where Telefonica's Net Debt Paydown 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.
* All the data are calculated by TTM values. Note that if a companies is traded in several exchanges, then we calculate the company level data for Net Debt Paydown Yield % using the primary share class stock data. The calculation result in definition page is for demonstration purpose only, and it's showing the share class level data. Therefore, the numbers in the calculation may differ from elsewhere if the stock is not a primary share.
What does a Net Debt Paydown Yield % of 7.36% mean?
Telefonica (XMAD:TEF) has a Net Debt Paydown Yield % of 7.36% as of Jul. 12, 2026. Net Debt Paydown Yield is a metric that evaluates the total amount of debt a company has paid in relation to its market capitalization. This metric provides insight into a company's willingness and ability to reduce its debt using free cash flow. View historical data on Telefonica and its competitors. This is 121% above median its historical median of 3.33. According to the industry distribution chart, Telefonica ranks #54 out of 348 companies in the Telecommunication Services industry, placing it in the top 15.5%.
Is Telefonica's Net Debt Paydown Yield % too high?
Telefonica's current Net Debt Paydown Yield % of 7.36% is 121% above median its 10-year median of 3.33. Based on the distribution chart, Telefonica ranks #54 out of 348 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 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica's Net Debt Paydown Yield % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica ranks #54 out of 348 companies for Net Debt Paydown Yield %. This places Telefonica in the top 16% 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 Net Debt Paydown Yield % for a Telecommunication Services company?
A good Net Debt Paydown Yield % depends on the Telecommunication Services industry context. However, Net Debt Paydown Yield % 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 Net Debt Paydown Yield % mean?
A high Net Debt Paydown Yield % can signal that a stock is expensive relative to its fundamentals. Net Debt Paydown Yield is a metric that evaluates the total amount of debt a company has paid in relation to its market capitalization. This metric provides insight into a company's willingness and ability to reduce its debt using free cash flow. View historical data on Telefonica and its competitors. Telefonica's current Net Debt Paydown Yield % is 7.36%, which is 121% above median its own 10-year median of 3.33. 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 (XMAD:TEF) is currently considered Fairly Valued. The stock's GF Value™ is €3.77, compared to a current price of €3.53 — trading 6.5% below its estimated fair value. The current Net Debt Paydown Yield % is 7.36%, which is 121% above median its 10-year median of 3.33. Telefonica's overall GF Score™ is 63/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Debt Paydown Yield % calculated?
Net Debt Paydown Yield % is calculated from a company's financial statements. For Telefonica (XMAD:TEF), the current Net Debt Paydown Yield % is 7.36% as of Jul. 12, 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 (XMAD:TEF) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica stock appears to be undervalued.
The current stock price of €3.53 is trading 6.5% below its estimated GF Value™ of €3.77.
GuruFocus considers Telefonica to be Fairly Valued.
Key valuation signals for XMAD:TEF:
Net Debt Paydown Yield %: 7.36% (121% above median its 10-year median of 3.33)
GF Value™: €3.77 vs. price of €3.53 (6.5% below fair value)
No single metric tells the full story. See the XMAD:TEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
63GF Score
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