Telefonica BrasilSTU:TSPA +0.86%84 ROE % is 7.50% as of Mar. 2026, which is 5% above its 10-year median of 7.17. GuruFocus rates STU:TSPA with a GF Score™ of 84/100 and a GF Value™ of €10.57 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 349 Telecommunication Services companies, Telefonica Brasil ranks better than 56.16% on this metric.
The historical rank and industry rank for Telefonica Brasil's ROE % or its related term are showing as below:
STU:TSPA'
s ROE % Range Over the Past 10 Years
Min: 5.91 Med: 7.17 Max: 12.66
Current: 9.29
During the past 13 years, Telefonica Brasil's highest ROE % was 12.66%. The lowest was 5.91%. And the median was 7.17%.
STU:TSPA's ROE % is ranked better than 56.16% of 349
companies
in the Telecommunication Services industry
Industry Median: 7.41
vs STU:TSPA: 9.29
Telefonica Brasil (STU:TSPA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Telefonica Brasil ROE % Related Terms
Telefonica Brasil ROE % Historical Data
* Premium members only.
The historical data trend for Telefonica Brasil's ROE % 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 Brasil's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's ROE % distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Telefonica Brasil (STU:TSPA) has a ROE % of 7.50% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Telefonica Brasil and its competitors. This is near median its historical median of 7.17. Over the past decade, Telefonica Brasil's ROE % has ranged from 5.91 to 12.66. According to the industry distribution chart, Telefonica Brasil ranks #153 out of 349 companies in the Telecommunication Services industry, placing it in the top 43.8%.
Is Telefonica Brasil's ROE % too high?
Telefonica Brasil's current ROE % of 7.50% is near median its 10-year median of 7.17. Over the past 10 years, this metric has ranged from a low of 5.91 to a high of 12.66. The Telecommunication Services industry median ROE % is 7.41. Telefonica Brasil's value of 7.50% is 1.2% above this industry median. Based on the distribution chart, Telefonica Brasil ranks #153 out of 349 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telefonica Brasil has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's ROE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica Brasil ranks #153 out of 349 companies for ROE %. This puts Telefonica Brasil in the upper half of its industry. The industry median ROE % is 7.41. Telefonica Brasil's value of 7.50% is 1.2% above this benchmark. Historically, Telefonica Brasil's own ROE % has ranged from 5.91 to 12.66 over the past decade. While the company's 10-year median is 7.17 vs. the industry median of 7.41, Telefonica Brasil 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 ROE % for a Telecommunication Services company?
The median ROE % among Telecommunication Services companies is 7.41, based on 349 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonica Brasil's current ROE % of 7.50% is 1.2% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Telefonica Brasil and its competitors. For the Telecommunication Services industry, the median ROE % is 7.41 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica Brasil's current ROE % is 7.50%, which is near median its own 10-year median of 7.17. 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 (STU:TSPA) is currently considered Modestly Overvalued. The stock's GF Value™ is €10.57, compared to a current price of €11.70 — trading 10.7% above its estimated fair value. The current ROE % is 7.50%, which is near median its 10-year median of 7.17 and 1.2% above the Telecommunication Services industry median of 7.41. Telefonica Brasil's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Telefonica Brasil (STU:TSPA), the current ROE % is 7.50% 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 Brasil (STU:TSPA) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonica Brasil stock appears to be overvalued.
The current stock price of €11.70 is trading 10.7% above its estimated GF Value™ of €10.57.
GuruFocus considers Telefonica Brasil to be Modestly Overvalued.
Key valuation signals for STU:TSPA:
ROE %: 7.50% (near median its 10-year median of 7.17)
GF Value™: €10.57 vs. price of €11.70 (10.7% above fair value)
Industry Position: 1.2% above the Telecommunication Services median (#153 of 349)
No single metric tells the full story. See the STU:TSPA 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.
84GF Score
Get the complete analysis for STU:TSPA
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:TSPA has been successfully added to your 
