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Telefonica Brasil has the Financial Strength Rank of 6.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Telefonica Brasil's Interest Coverage for the quarter that ended in Jun. 2026 was 3.64.
Telefonica Brasil's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.31.
As of today, Telefonica Brasil's Altman Z-Score is 1.62.
Telefonica Brasil (NYSE:VIV) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Telefonica Brasil has the Financial Strength Rank of 6.
Telefonica Brasil Financial Strength Related Terms
VIV vs VZ, TMUS, T: Financial Strength Comparison
For the Telecom Services subindustry, Telefonica Brasil's Financial Strength, along with its competitors' market caps and Financial Strength 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 Brasil Financial Strength vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's Financial Strength distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Telefonica Brasil has a Z-score of 1.62, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.62 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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 Brasil (VIV) has a Financial Strength of 6 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Telefonica Brasil and its competitors. This is 14% below median its historical median of 7.00. Over the past decade, Telefonica Brasil's Financial Strength has ranged from 5.00 to 8.00.
Is Telefonica Brasil's Financial Strength too high?
Telefonica Brasil's current Financial Strength of 6 is 14% below median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 8.00. Overall, Telefonica Brasil has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's Financial Strength compare to VZ and TMUS?
Telefonica Brasil's Financial Strength of 6 can be compared against companies in the Telecommunication Services industry. Historically, Telefonica Brasil's own Financial Strength has ranged from 5.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Telecommunication Services company?
A good Financial Strength depends on the Telecommunication Services industry context. However, Financial Strength 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 Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Telefonica Brasil and its competitors. Telefonica Brasil's current Financial Strength is 6, which is 14% below median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonica Brasil stock overvalued right now?
Based on GuruFocus' analysis, Telefonica Brasil (VIV) is currently considered Fairly Valued. The stock's GF Value™ is $12.49, compared to a current price of $11.59 — trading 7.2% below its estimated fair value. The current Financial Strength is 6, which is 14% below median its 10-year median of 7.00. Telefonica Brasil's overall GF Score™ is 78/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Telefonica Brasil (VIV), the current Financial Strength is 6 as of Jun. 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 Brasil (VIV) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be undervalued.
The current stock price of $11.59 is trading 7.2% below its estimated GF Value™ of $12.49.
GuruFocus considers Telefonica Brasil to be Fairly Valued.
Key valuation signals for VIV:
Financial Strength: 6 (14% below median its 10-year median of 7.00)
GF Value™: $12.49 vs. price of $11.59 (7.2% below fair value)
No single metric tells the full story. See the VIV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 103 million customers, which is equal to about 38% market share. The firm is strongest in the postpaid business, where it has 72 million customers, or about 40% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and also owns an extensive fiber network across the country. The firm provides internet access to 8 million households on this network. The firm also sells pay-TV and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 10% of total revenue.
78GF Score
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