One-glance verdict
Undervalued
$32.15 our estimate vs market $11.60
Wall Street consensus: $14.94 (-53.5% lower than our fair-value estimate)
64% below our estimate, below the bear case
Fundamentals snapshot
Telefônica Brasil S.A.
VIV · NYQ · Communication Services · Telecom Services
Current price
$11.60
52-week range
$11.18 - $17.26
Market cap
$18.53B
Balance sheet
Healthy
12.48x Strong cushion
Net debt $2.17B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.7% last year.
- Reward Returns 9.9% on equity, ahead of 16% of its peers.
- Risk Stock trades 394.4% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 0.1%).
What this company does
Telefônica Brasil S.A.
Telefônica Brasil, known as Vivo, is a major phone and internet provider in Brazil, similar to Verizon or AT&T in the U.S. The company makes most of its money from millions of customers paying monthly bills for mobile data, home internet, and TV services. Because these are often essential services, this can create a steady and predictable stream of income.
How the company got here
Telefônica Brasil began its journey in 1998 when the Brazilian government privatized the state-owned telephone system, Telebrás. The Spanish telecom giant Telefónica purchased a part of it, which eventually became Telefônica Brasil. A major turning point was in 2010 when Telefónica bought full control of the mobile brand 'Vivo', which was previously a joint venture. Since 2012, all of the company's services, from mobile phones to home internet, have been sold under the popular Vivo brand, making it the largest telecom operator in Brazil.
What it actually does
Telefônica Brasil, which most people in Brazil know as 'Vivo', is a one-stop shop for communication and entertainment. For individuals, it sells mobile phone plans with calling and internet data, home internet (especially through fast fiber optic cables), and pay-TV packages. For businesses, it provides a wide range of services from mobile connectivity and internet to more complex IT solutions like cloud computing (storing data on the internet instead of local computers) and cybersecurity. The company also sells devices like smartphones and modems in its stores and online.
Mobile Business
This is the company's largest and most important segment, making up the majority of its revenue (the total money it brings in from sales). It involves selling mobile phone services to over 100 million customers across Brazil. Customers pay for different types of plans, including postpaid plans (where you pay a monthly bill after using the service) and prepaid plans (where you pay upfront). This part of the business earns money from monthly fees for calls, text messages, and especially mobile internet data on its 4G and 5G networks.
Fixed-Line Business
This segment includes all the services connected by a physical cable to a customer's home or business. A fast-growing and crucial part of this is high-speed internet delivered through fiber-optic cables, known as FTTH (Fiber-to-the-Home). This division also provides traditional landline telephone services and pay-TV packages. While mobile is bigger, the fixed-line business, especially fiber internet, is a key area of growth and investment for the company.
Corporate and Digital Services
This is a smaller but growing part of the company that serves other businesses. It goes beyond basic phone and internet, offering advanced technology solutions to corporate clients. This includes services like data storage and processing, cybersecurity to protect businesses from online threats, and other IT support. By providing these complex services, Vivo helps other companies in industries like retail, finance, and manufacturing manage their technology needs.
What management is betting on now
Management's strategy is heavily focused on expanding its high-speed fiber internet network to reach more homes and cities. At the same time, they are investing significantly in their 5G mobile network to offer faster and more reliable wireless connections. The company is also looking to grow by bundling services together—for example, selling a mobile plan, home internet, and TV as a single package to keep customers loyal. Finally, they are committed to returning money to shareholders through dividends (a portion of profits paid out to investors) and share buybacks (when a company buys its own stock to make the remaining shares more valuable).
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $32.15 vs current price $11.60
Wall Street consensus is the average analyst price target: $14.94 (-53.5% lower than our fair-value estimate).
Our most-likely fair value is $32.15 a share — about 177.2% above today's price of $11.60, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $2.2B. Interest coverage 12.5x.
Net debt
$2.17B
Interest coverage
12.48x
Telefônica Brasil S.A.'s profit covers its interest bill about 12.5 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
VIV
BASELINE
Telefônica Brasil S.A.
Total debt $3.83B Interest coverage 12.48x This is the baseline the peer rows are being compared against.
Total debt $39.11B Interest coverage 2.43x -81% vs VIV Carries about 5.1x less debt cushion than VIV.
Total debt $3.18B Interest coverage 2.90x -77% vs VIV Carries about 4.3x less debt cushion than VIV.
Total debt $3.95B Interest coverage 1.80x -86% vs VIV Carries about 7.0x less debt cushion than VIV.
Total debt $12.09B Interest coverage 2.55x -80% vs VIV Carries about 4.9x less debt cushion than VIV.
Total debt $8.99B Interest coverage 1.10x -91% vs VIV Carries about 11.4x less debt cushion than VIV.
What you should know
The case for and against VIV
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.7% last year.
-
Returns 9.9% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
-
Stock trades 394.4% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 0.1%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
14.68x
Forward P/E
11.19x
P/B
1.44x
P/S
0.30x
EV/EBITDA
1.48x
PEG ratio
0.81x
Profitability
How much profit each dollar creates
Gross margin
48.3%
Operating margin
17.6%
Net margin
10.7%
ROE
9.9%
ROA
5.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.30x
Current ratio
0.95x
Quick ratio
0.75x
Total debt
$3.83B
Total cash
$1.65B
Growth
How the business has been compounding
Revenue TTM
$11.91B
Revenue 5Y CAGR
7.4%
EPS TTM
0.79
EPS 5Y CAGR
16.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.99B
Free CF TTM
$2.17B
FCF margin
18.2%
Dividend
Shareholder payout
Yield
8.6%
Payout ratio
121.0%
Last ex-div date
2026-08-27