Swisscom AGFRA:SWJ -0.72%76 Pretax Margin % is 11.20% as of Mar. 2026, which is 34% below its 10-year median of 16.85. GuruFocus rates FRA:SWJ with a GF Score™ of 76/100 and a GF Value™ of €741.25 (Fairly Valued). The stock has 6 warning signs investors should review. Among 368 Telecommunication Services companies, Swisscom AG ranks better than 57.07% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Swisscom AG's Pre-Tax Income for the
three
months ended in Mar. 2026 was €444 Mil. Swisscom AG's Revenue for the
three
months ended in Mar. 2026 was €3,962 Mil. Therefore, Swisscom AG's pretax margin for the quarter that ended in Mar. 2026 was 11.20%.
The historical rank and industry rank for Swisscom AG's Pretax Margin % or its related term are showing as below:
FRA:SWJ'
s Pretax Margin % Range Over the Past 10 Years
Min: 10.27 Med: 16.85 Max: 19.24
Current: 10.27
FRA:SWJ's Pretax Margin % is ranked better than 57.07% of 368
companies
in the Telecommunication Services industry
Industry Median: 7.64
vs FRA:SWJ: 10.27
Swisscom AG (FRA:SWJ) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Swisscom AG Pretax Margin % Related Terms
Swisscom AG Pretax Margin % Historical Data
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The historical data trend for Swisscom AG's Pretax Margin % 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.
FRA:SWJ vs TMUS, VZ, T: Pretax Margin % Comparison
For the Telecom Services subindustry, Swisscom AG's Pretax Margin %, along with its competitors' market caps and Pretax Margin % 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.
Swisscom AG Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Swisscom AG's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Swisscom AG's Pretax Margin % 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.
Swisscom AG (FRA:SWJ) has a Pretax Margin % of 11.20% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Swisscom AG and its competitors. This is 34% below median its historical median of 16.85. Over the past decade, Swisscom AG's Pretax Margin % has ranged from 10.27 to 19.24. According to the industry distribution chart, Swisscom AG ranks #158 out of 368 companies in the Telecommunication Services industry, placing it in the top 42.9%.
Is Swisscom AG's Pretax Margin % too high?
Swisscom AG's current Pretax Margin % of 11.20% is 34% below median its 10-year median of 16.85. Over the past 10 years, this metric has ranged from a low of 10.27 to a high of 19.24. The Telecommunication Services industry median Pretax Margin % is 7.64. Swisscom AG's value of 11.20% is 46.6% above this industry median. Based on the distribution chart, Swisscom AG ranks #158 out of 368 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Swisscom AG has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Swisscom AG's Pretax Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Swisscom AG ranks #158 out of 368 companies for Pretax Margin %. This puts Swisscom AG in the upper half of its industry. The industry median Pretax Margin % is 7.64. Swisscom AG's value of 11.20% is 46.6% above this benchmark. Historically, Swisscom AG's own Pretax Margin % has ranged from 10.27 to 19.24 over the past decade. While the company's 10-year median is 16.85 vs. the industry median of 7.64, Swisscom AG 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 Pretax Margin % for a Telecommunication Services company?
The median Pretax Margin % among Telecommunication Services companies is 7.64, based on 368 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Swisscom AG's current Pretax Margin % of 11.20% is 46.6% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Swisscom AG and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Swisscom AG's current Pretax Margin % is 11.20%, which is 34% below median its own 10-year median of 16.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swisscom AG stock overvalued right now?
Based on GuruFocus' analysis, Swisscom AG (FRA:SWJ) is currently considered Fairly Valued. The stock's GF Value™ is €741.25, compared to a current price of €685.00 — trading 7.6% below its estimated fair value. The current Pretax Margin % is 11.20%, which is 34% below median its 10-year median of 16.85 and 46.6% above the Telecommunication Services industry median of 7.64. Swisscom AG's overall GF Score™ is 76/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Swisscom AG (FRA:SWJ), the current Pretax Margin % is 11.20% 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 Swisscom AG (FRA:SWJ) Overvalued in 2026?
Based on GuruFocus' analysis, Swisscom AG stock appears to be undervalued.
The current stock price of €685.00 is trading 7.6% below its estimated GF Value™ of €741.25.
GuruFocus considers Swisscom AG to be Fairly Valued.
Key valuation signals for FRA:SWJ:
Pretax Margin %: 11.20% (34% below median its 10-year median of 16.85)
GF Value™: €741.25 vs. price of €685.00 (7.6% below fair value)
Industry Position: 46.6% above the Telecommunication Services median (#158 of 368)
No single metric tells the full story. See the FRA:SWJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swisscom is the incumbent telecom operator in Switzerland, with a very high market share in mobile and fixed-line markets. It charges high prices compared with its competitors and other European peers due to the historical stability of the Swiss telecom market and a favorable regulatory environment. In 2024, Swisscom acquired Vodafone Italia in a deal worth EUR 8 billion.
76GF Score
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