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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
Telefonica Brasil's 3-Year RORE % for the quarter that ended in Mar. 2026 was 7.59%.
The industry rank for Telefonica Brasil's 3-Year RORE % or its related term are showing as below:
STU:TSPA's 3-Year RORE % is ranked better than 63.13% of 339
companies
in the Telecommunication Services industry
Industry Median: 8.6
vs STU:TSPA: 7.59
Telefonica Brasil (STU:TSPA) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
Telefonica Brasil 3-Year RORE % Related Terms
Telefonica Brasil 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for Telefonica Brasil's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 3-Year RORE % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Telefonica Brasil's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where Telefonica Brasil's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
Telefonica Brasil (STU:TSPA) has a 3-Year RORE % of 7.59 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Telefonica Brasil and its competitors. According to the industry distribution chart, Telefonica Brasil ranks #125 out of 339 companies in the Telecommunication Services industry, placing it in the top 36.9%.
Is Telefonica Brasil's 3-Year RORE % too high?
Telefonica Brasil's current 3-Year RORE % is 7.59. The Telecommunication Services industry median 3-Year RORE % is 8.60. Telefonica Brasil's value of 7.59 is 11.7% below this industry median. Based on the distribution chart, Telefonica Brasil ranks #125 out of 339 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Telefonica Brasil has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Telefonica Brasil's 3-Year RORE % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Telefonica Brasil ranks #125 out of 339 companies for 3-Year RORE %. This puts Telefonica Brasil in the upper half of its industry. The industry median 3-Year RORE % is 8.60. Telefonica Brasil's value of 7.59 is 11.7% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Telecommunication Services company?
The median 3-Year RORE % among Telecommunication Services companies is 8.60, based on 339 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonica Brasil's current 3-Year RORE % of 7.59 is 11.7% below 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 3-Year RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on Telefonica Brasil and its competitors. For the Telecommunication Services industry, the median 3-Year RORE % is 8.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonica Brasil's current 3-Year RORE % is 7.59. 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?
Telefonica Brasil (STU:TSPA) has a current 3-Year RORE % of 7.59. The stock's GF Value™ is €10.84, compared to a current price of €12.20 — trading 12.5% above its estimated fair value. The current 3-Year RORE % is 7.59 and 11.7% below the Telecommunication Services industry median of 8.60. Telefonica Brasil's overall GF Score™ is 80/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For Telefonica Brasil (STU:TSPA), the current 3-Year RORE % is 7.59 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 €12.20 is trading 12.5% above its estimated GF Value™ of €10.84.
Key valuation signals for STU:TSPA:
3-Year RORE %: 7.59
GF Value™: €10.84 vs. price of €12.20 (12.5% above fair value)
Industry Position: 11.7% below the Telecommunication Services median (#125 of 339)
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.
80GF Score
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