One-glance verdict
Undervalued
$37.20 our estimate vs market $11.61
Wall Street consensus: $13.81 (-62.9% lower than our fair-value estimate)
69% below our estimate, below the bear case
Fundamentals snapshot
Telefônica Brasil S.A.
VIV · NYQ · Communication Services · Telecom Services
Current price
$11.61
52-week range
$10.70 - $17.26
Market cap
$18.55B
Balance sheet
Healthy
12.48x Strong cushion
Net debt $2.03B. 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 401.2% above its 5-year average P/E.
- Risk Insider ownership is only 0.0% (peer median: 1.9%).
What this company does
Telefônica Brasil S.A.
Telefônica Brasil sells phone and internet services, like mobile plans with 5G and pay TV, mainly to people and businesses in Brazil. They make most of their money from these monthly service subscriptions, which are important because it shows how much money the company can count on each month (this is called recurring revenue).
How the company got here
Telefônica Brasil, known today as Vivo, has a history rooted in Brazil's state-owned telecommunications monopoly, Telebrás. When Telebrás was privatized in 1998, Telefónica acquired the São Paulo division, Telesp, and began its journey in the Brazilian market. A significant turning point came in 2010 when Telefónica gained full control of Vivo, a mobile operator it had co-owned, eventually integrating all its Brazilian services under the Vivo brand by 2012. This consolidation allowed the company to become the largest telecommunications provider in Brazil, serving millions of customers across the country.
What it actually does
Telefônica Brasil, operating under the brand Vivo, is the largest telecommunications company in Brazil. It provides a wide range of services, including mobile and fixed-line phone services, high-speed internet access (both mobile and fixed broadband), and pay-TV. The company also offers digital services like cloud computing, cybersecurity, and entertainment, catering to both individual consumers and businesses. Vivo's extensive network covers a significant portion of the Brazilian population with advanced mobile technologies like 4.5G and 5G, and it continues to expand its fiber-optic network for home internet.
Mobile Services
This is the largest part of Vivo's business, providing mobile phone services to over 105 million customers in Brazil. It includes everything from basic prepaid and postpaid voice plans to high-speed mobile internet access powered by 4.5G and 5G networks. Customers pay for monthly plans or prepaid top-ups, and the company generates revenue from these subscriptions and usage charges. This segment is crucial for Vivo's market leadership and revenue generation.
Fixed Broadband and Pay TV
This segment focuses on providing internet and television services to homes. Vivo offers high-speed internet through its expanding fiber-optic network (Fiber to the Home or FTTH), reaching millions of households across many cities. It also provides pay-TV services, primarily through IPTV (Internet Protocol television), which delivers TV channels over the internet. Customers pay monthly subscription fees for these services, which are essential for connected homes and entertainment.
Digital and Enterprise Services
Beyond traditional telecommunications, Vivo acts as a 'digital hub' offering a variety of digital services to both individuals and businesses. This includes solutions in areas like cybersecurity, cloud computing, IT support, and entertainment platforms. For businesses (B2B clients), Vivo provides tailored telecommunications and IT solutions, helping companies with their digital transformation. Revenue in this segment comes from service contracts and subscriptions for these specialized digital offerings.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $37.20 vs current price $11.61
Wall Street consensus is the average analyst price target: $13.81 (-62.9% lower than our fair-value estimate).
Our most-likely fair value is $37.20 a share — about 220.4% above today's price of $11.61, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net debt $2.0B. Interest coverage 12.5x.
Net debt
$2.03B
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 $3.58B Interest coverage 12.48x This is the baseline the peer rows are being compared against.
Total debt $37.98B Interest coverage 2.43x -81% vs VIV Carries about 5.1x less debt cushion than VIV.
Total debt $2.84B Interest coverage 2.90x -77% vs VIV Carries about 4.3x less debt cushion than VIV.
Total debt $3.89B Interest coverage 1.80x -86% vs VIV Carries about 7.0x less debt cushion than VIV.
Total debt $12.04B Interest coverage 2.55x -80% vs VIV Carries about 4.9x less debt cushion than VIV.
Total debt $9.04B 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 401.2% above its 5-year average P/E.
-
Insider ownership is only 0.0% (peer median: 1.9%).
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)
14.88x
Forward P/E
10.87x
P/B
1.42x
P/S
0.30x
EV/EBITDA
1.49x
PEG ratio
0.85x
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
$3.58B
Total cash
$1.55B
Growth
How the business has been compounding
Revenue TTM
$11.13B
Revenue 5Y CAGR
7.4%
EPS TTM
0.78
EPS 5Y CAGR
16.1%
Cash flow
How much cash the business throws off
Operating CF TTM
$3.73B
Free CF TTM
$2.03B
FCF margin
18.2%
Dividend
Shareholder payout
Yield
8.7%
Payout ratio
120.0%
Last ex-div date
2026-10-27