2 models fit Telecom Argentina SA and they disagree: 0 of 2 land within 15% of the average. The price is below every model.
Two or more of our models back this value.
Large discount(i)Silver75
Valued as a growth company: Discounted cash flow, P/E comparison, and EV/EBITDA comparison.
ACCE opinionTelecom Argentina SA (TEO)
Fair value (2 models)
$21.19
ACCE price target
$13.50
Rating
Undervalued
Horizon
12 months
Fair value published on 21 Oct 2026, 13:04 CEST.
ACCE price target published on 10 Oct 2026, 00:00 CEST.
Rating published on 21 Oct 2026, 13:04 CEST.
Price used: $12.90 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow and EV/EBITDA comparison.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
39.1% below
+64.3% to fair value
ACCE score
73
out of 100
Analysts
80% buy
5 covering
P/E
10.1x
forward 5.5x
1-year return
+68.6%
Dividend yield
0.34%
Telecom Argentina SA in four questions
Plain answers, details below
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Overview
ACCE thesis
Telecom Argentina operates the country's largest fixed-line and mobile networks, selling broadband internet, pay TV, and mobile service under the Personal and Movistar brands. Its advantage is scale in a market where few competitors can match its network footprint, and gross margins of 76.5% reflect how much of its cost base is fixed infrastructure. Revenue growth is only 0.4%, so the case rests on margin resilience and cash generation rather than top-line expansion, and any turnaround depends on Argentina's inflation and currency path, which the company does not control. At a trailing P/E of 9.8 and a forward P/E of 5.5, the market is pricing in substantial risk, and with a 14.0% operating margin and 10.8% ROE the earnings base is worth a closer look. A 5.3 billion dollar market cap and no index membership mean the stock is under-followed, which is why it merits a deeper review of the balance sheet and currency exposure before any position is considered.
⚠ Investor warnings · 2 flagsAI-assisted·How I use AI
moderate
Revenue growth stalled
Revenue grew just 0.4% year over year, far below the 56.5% five-year CAGR, while earnings jumped 439.1% off a weak base. The earnings gain is not yet a growth trend.
moderate
ACCE score fell sharply
The ACCE score dropped 13 points in 90 days, from 82 to 69, with growth (55) the weakest component. Price sits 4.4% below the ACCE price target of $13.50.
AI research notes
AI-assisted·How I use AIWritten Oct 21, 2026 · figures from 2026-10-21 · prices to Oct 23, 2026
Why it could do well
Free cash flow over the last twelve months reached ARS 601.7B, and the stock's free cash flow yield stands at 7.3%.
The stock trades at a trailing P/E of 10.2x, against a forward P/E of 14.3x and a sector median forward P/E of 16.7x.
Four of five analysts rate the shares Buy or Strong Buy, and the analysts' mean target sits 4.4% above the current price.
Why it could disappoint
Return on invested capital is negative at -1.2%, so the business is not currently earning back what it spends on its assets.
Revenue grew just 0.4% year over year, so most of the upside case depends on the valuation rising rather than the business expanding.
The price sits 39.1% below the model fair value of $21.19, but that gap rests on only 2 of 3 valuation models in the consensus.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 9, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
INVESTOR
Where TEO's valuation models land
Price
$12.90
Model fair value
$21.19
Model range
$16.04 to $25.48
Fair value $21.19
Price $12.90
The price is below the whole model range.
Model
Fair value
Upside
Discounted cash flow
EV/EBITDA comparison
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
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+Conviction breakdown and growth / value / quality / momentum scores