Telecom Italia SpAWBO:TIT2 49 Pretax Margin % is -6.35% as of Mar. 2026. GuruFocus rates WBO:TIT2 with a GF Score™ of 49/100 and a GF Value™ of €2.33 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 368 Telecommunication Services companies, Telecom Italia SpA ranks worse than 60.33% on this metric.
The historical rank and industry rank for Telecom Italia SpA's Pretax Margin % or its related term are showing as below:
WBO:TIT2'
s Pretax Margin % Range Over the Past 10 Years
Min: -29.48 Med: 4.09 Max: 14.71
Current: 4.12
WBO:TIT2's Pretax Margin % is ranked worse than 60.33% of 368
companies
in the Telecommunication Services industry
Industry Median: 7.64
vs WBO:TIT2: 4.12
Telecom Italia SpA (WBO:TIT2) 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.
Telecom Italia SpA Pretax Margin % Related Terms
Telecom Italia SpA Pretax Margin % Historical Data
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The historical data trend for Telecom Italia SpA'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.
WBO:TIT2 vs TMUS, VZ, T: Pretax Margin % Comparison
For the Telecom Services subindustry, Telecom Italia SpA'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.
Telecom Italia SpA Pretax Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telecom Italia SpA's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Telecom Italia SpA'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.
Telecom Italia SpA (WBO:TIT2) has a Pretax Margin % of -6.35% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Telecom Italia SpA and its competitors. According to the industry distribution chart, Telecom Italia SpA ranks #222 out of 368 companies in the Telecommunication Services industry, placing it in the top 60.3%.
Is Telecom Italia SpA's Pretax Margin % too high?
Telecom Italia SpA's current Pretax Margin % is -6.35%. Based on the distribution chart, Telecom Italia SpA ranks #222 out of 368 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Telecom Italia SpA has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telecom Italia SpA's Pretax Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telecom Italia SpA ranks #222 out of 368 companies for Pretax Margin %. This places Telecom Italia SpA in the lower half of its industry. The industry median Pretax Margin % is 7.64. 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. 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 Telecom Italia SpA 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. Telecom Italia SpA's current Pretax Margin % is -6.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telecom Italia SpA stock overvalued right now?
Based on GuruFocus' analysis, Telecom Italia SpA (WBO:TIT2) is currently considered Significantly Overvalued. The stock's GF Value™ is €2.33, compared to a current price of €7.89 — trading 238.5% above its estimated fair value. The current Pretax Margin % is -6.35%. Telecom Italia SpA's overall GF Score™ is 49/100 with 9 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 Telecom Italia SpA (WBO:TIT2), the current Pretax Margin % is -6.35% 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 Telecom Italia SpA (WBO:TIT2) Overvalued in 2026?
Based on GuruFocus' analysis, Telecom Italia SpA stock appears to be overvalued.
The current stock price of €7.89 is trading 238.5% above its estimated GF Value™ of €2.33.
GuruFocus considers Telecom Italia SpA to be Significantly Overvalued.
Key valuation signals for WBO:TIT2:
Pretax Margin %: -6.35%
GF Value™: €2.33 vs. price of €7.89 (238.5% above fair value)
No single metric tells the full story. See the WBO:TIT2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telecom Italia is the incumbent telecommunications operator in Italy, with 23% share in the Italian mobile market and 35% share in broadband. In the mobile market, it competes with Vodafone, WindTre, and Iliad. After the sale of its fixed network to KKR for EUR 18.8 billion in 2024, TIM has become a pure service provider with no network ownership. TIM Brazil is significantly smaller than its peers, Telefonica and America Movil, with 25% wireless market share.
49GF Score
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