TelefonicaTEFOF 65 Pretax Margin % is 7.90% as of Mar. 2026, which is 17% above its 10-year median of 6.75. GuruFocus rates TEFOF with a GF Score™ of 65/100 and a GF Value™ of $4.31 (Fairly Valued). The stock has 7 warning signs investors should review. Among 366 Telecommunication Services companies, Telefonica ranks worse than 77.87% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Telefonica's Pre-Tax Income for the
three
months ended in Mar. 2026 was $742 Mil. Telefonica's Revenue for the
three
months ended in Mar. 2026 was $9,395 Mil. Therefore, Telefonica's pretax margin for the quarter that ended in Mar. 2026 was 7.90%.
The historical rank and industry rank for Telefonica's Pretax Margin % or its related term are showing as below:
TEFOF'
s Pretax Margin % Range Over the Past 10 Years
Min: -4.1 Med: 6.75 Max: 30.79
Current: -4.1
TEFOF's Pretax Margin % is ranked worse than 77.87% of 366
companies
in the Telecommunication Services industry
Industry Median: 7.6
vs TEFOF: -4.10
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.
Telefonica Pretax Margin % Related Terms
Telefonica Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Telefonica'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.
For the Telecom Services subindustry, Telefonica'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.
Telefonica Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Telefonica'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.
Telefonica (TEFOF) has a Pretax Margin % of 7.90% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Telefonica and its competitors. This is 17% above median its historical median of 6.75. According to the industry distribution chart, Telefonica ranks #285 out of 366 companies in the Telecommunication Services industry, placing it in the top 77.9%.
Is Telefonica's Pretax Margin % too high?
Telefonica's current Pretax Margin % of 7.90% is 17% above median its 10-year median of 6.75. The Telecommunication Services industry median Pretax Margin % is 7.60. Telefonica's value of 7.90% is 3.9% above this industry median. Based on the distribution chart, Telefonica ranks #285 out of 366 companies in the Telecommunication Services industry, which is in the bottom quartile 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 Pretax Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica ranks #285 out of 366 companies for Pretax Margin %. This places Telefonica in the lower half of its industry. The industry median Pretax Margin % is 7.60. Telefonica's value of 7.90% is 3.9% above this benchmark. While the company's 10-year median is 6.75 vs. the industry median of 7.60, Telefonica 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 7.60, based on 366 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. Telefonica's current Pretax Margin % of 7.90% is 3.9% 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 Telefonica and its competitors. For the Telecommunication Services industry, the median Pretax Margin % is 7.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica's current Pretax Margin % is 7.90%, which is 17% above median its own 10-year median of 6.75. 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 $4.31, compared to a current price of $4.20 — trading 2.7% below its estimated fair value. The current Pretax Margin % is 7.90%, which is 17% above median its 10-year median of 6.75 and 3.9% above the Telecommunication Services industry median of 7.60. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Telefonica (TEFOF), the current Pretax Margin % is 7.90% 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 Telefonica (TEFOF) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica stock appears to be undervalued.
The current stock price of $4.20 is trading 2.7% below its estimated GF Value™ of $4.31.
GuruFocus considers Telefonica to be Fairly Valued.
Key valuation signals for TEFOF:
Pretax Margin %: 7.90% (17% above median its 10-year median of 6.75)
GF Value™: $4.31 vs. price of $4.20 (2.7% below fair value)
Industry Position: 3.9% above the Telecommunication Services median (#285 of 366)
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 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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