Stock fact sheet · data as of
Telecom Argentina S.A. (TEO): fair value, margin of safety and Wheel Score
Communication Services · Telecommunications Services · Argentina · ADR · High Growth
Is TEO undervalued?
TEO has a margin of safety of 100%: the stock closed at 12.46 on 16 Oct 2026 against a GLS average fair value of 9,252.82. 7 of the 9 valuation models that produced a number sit above the price. Our screens treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The 9 models disagree widely: Lynch gives 4.20 while 10 Cap gives 76,285.54. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files TEO under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for TEO
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 217.50 | +1646% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 5,590.39 | +44767% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 16.95 | +36% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 4.20 | -66% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 50.33 | +304% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 76,285.54 | +612144% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 95.88 | +670% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 1,002.93 | +7949% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 11.67 | -6% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -18,114.18 | -145479% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 14.23 | +14% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health TEO scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 4.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are thin or negative - ROIC -1.5%, ROE -2.5%, ROA -1.0% - with debt at 0.63 times equity and a free-cash-flow yield of 11.9%.
The dividend yield is 0.34% with a payout ratio of 10% - a small yield that leaves most of the earnings in the business. Revenue comes mainly from Fixed Telephony and Data services 100% (fiscal year FY2022).
Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | -1.5% |
|---|---|---|---|
| GLS Moat | 4.8 / 10 | ROE | -2.5% |
| Debt / equity | 0.63 | ROA | -1.0% |
| Free-cash-flow yield | 11.9% | Payout ratio | 10% |
| Institutions | 1 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 74: Good
TEO scores 74 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (7/15), the option premium on offer (12/20) and how easily the stock trades (14/20). Moat (7/15) is the part holding the score back.
Implied volatility is 90% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (12 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 758 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 294k shares a day on a market cap of $5.4B, with a beta of 0.37 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 14 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 100% margin of safety | |
| Health | 16 / 20 | Piotroski 7/9 | |
| Moat | 7 / 15 | moat 4.8/10 | |
| Premium | 12 / 20 | implied volatility 90% | |
| Stability | 14 / 20 | 294k shares/day, $5.4B cap, beta 0.37 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 9 Nov 2026 (before the open), 24 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to Telecom Argentina S.A. by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| VEON VEON Ltd. | 80.46 | 82.98 | +3% | 66Good | $5.5B |
| LUMN Lumen Technologies, Inc. | 4.87 | 36.25 | +87% | 45Weak | $5.0B |
| IRDM Iridium Communications Inc. | 44.99 | 44.85 | -0% | 81Prime | $4.8B |
| TKC Turkcell Iletisim Hizmetleri A.S. | 5.03 | 182.74 | +97% | 87Prime | $4.4B |
| PHI PLDT Inc. | 19.38 | 936.14 | +98% | 39No options | $4.2B |
| LBTYB Liberty Global plc | 12.11 | 7.19 | -68% | 22No options | $3.7B |
| TDS Telephone and Data Systems, Inc. | 33.93 | 56.51 | +40% | 80Prime | $3.6B |
| TIMB TIM S.A. | 18.30 | 107.10 | +83% | 90Prime | $8.7B |
| KT KT Corporation | 18.57 | 21,490.56 | +100% | 83Prime | $9.0B |
| LILAP Liberty Latin America Ltd. 9% Cum Perp Red Pfd Shs Series A When-issued | 20.06 | 45.03 | +55% | 39No options | $3.1B |
| AD Array Digital Infrastructure Inc | 33.51 | 112.42 | +70% | 45Weak | $2.9B |
| UZD Array Digital Infrastructure, Inc. 6.250% Senior Notes due 2069 | 17.54 | 125.50 | +86% | 39No options | $2.9B |
⚖ Compare TEO with 7 of them All Communication Services stocks →
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Start free See the Sunday ScanQuestions about TEO
Is TEO undervalued right now?
By the GLS models, yes: at 12.46 the stock is 100% below the average fair value of 9,252.82 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TEO and what does it mean?
TEO scores 74 out of 100 (Good). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for TEO?
9,252.82 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Telecom Argentina S.A. report earnings next?
The next earnings report is due on 9 Nov 2026 (before the open), 24 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does TEO have listed options, and how liquid are they?
Yes. The nightly snapshot found 100 listed contracts with 758 open interest across all expiries and implied volatility of 90% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.