• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Telia Company (OM:TELIA) Has A Fresh Update, But What Is The Market Missing?

    Simply Wall St·10/14/2026 00:31:32
    Listen to the news

    Telia Company (OM:TELIA) has announced a sizeable restructuring, planning to cut about 900 positions and target SEK 1b in annual gross cost savings, with related charges expected in late 2026.

    Recent trading paints a mixed picture for Telia Company. The share price is down about 4.2% over the past month and 5.3% over the last quarter, yet the year to date share price return of 9.9% and a 1 year total shareholder return of 26.8% suggest longer term momentum has been stronger as investors weigh this cost cutting plan against the wider restructuring story.

    Scan how other telecoms and cost focused restructurings compare with Telia Company by running the hand picked 225 resilient stocks with low risk scores, which filters for resilient businesses with steadier risk profiles.

    The question now is whether Telia Company's recent pullback signals doubt about the restructuring plan or simply marks a pause in a stronger rerating. This makes the current valuation worth unpacking next.

    Most Popular Narrative: 6.5% Undervalued

    Telia Company closed at SEK43.57, while the most followed narrative anchors fair value at SEK46.60. As a result, the market price reflects a discount that is associated with disciplined execution in broadband, convergence and cost control.

    Transformation and portfolio restructuring, including the exit from non core markets, the sale of part of the Finnish ICT operations with limited EBITDA impact and the Bredband2 acquisition, are reshaping Telia Company toward higher margin connectivity and improving the mix of earnings and return on capital.

    See why 14 investors see Telia Company as 7% undervalued.

    Result: Fair Value of SEK46.60 (UNDERVALUED)

    Still, the Telia Company story could be knocked off course if Norway’s loss making unit drags on group margins or if Finnish competition keeps service revenue growth muted.

    Find out about the key risks to this Telia Company narrative.

    Another View: Telia Company Looks Expensive On Earnings

    The SWS DCF model suggests Telia Company is undervalued, yet the earnings multiple tells a different story. The stock trades on a P/E of 34.9x, while the fair ratio is 24.3x and the European telecom group sits closer to 15.3x. That gap points to valuation risk rather than a clear bargain, so which signal do you put more weight on?

    To see how this earnings based view fits into the full valuation picture, including where that fair ratio could converge over time, check the See what the numbers say about this price — find out in our valuation breakdown..

    OM:TELIA P/E Ratio as at Oct 2026
    OM:TELIA P/E Ratio as at Oct 2026

    Next Steps

    Mixed signals around Telia Company can be confusing, so move quickly, test the numbers yourself and pressure test both the risks and the upside. A useful place to start is by weighing the 2 key rewards and 2 important warning signs.

    Looking for more investment ideas beyond Telia Company?

    If Telia Company is on your radar, do not stop there. Use these focused screeners to quickly surface other opportunities that match your investing playbook.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.