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A Look at Tele2 (OM:TEL2 B) Valuation Following Landmark Global Satellite IoT Launch

Simply Wall St · 10/17/2025 03:20

Tele2 (OM:TEL2 B) has announced the rollout of a global satellite IoT connectivity service, becoming the first Swedish operator to introduce a commercial direct-to-device satellite solution. This partnership expands coverage possibilities for IoT devices far beyond traditional networks.

See our latest analysis for Tele2.

Tele2’s bold move into global satellite IoT has added fresh momentum to an already impressive run, with the stock up 42.2% year-to-date and a one-year total shareholder return of 46.1%. Strong recent gains suggest investors are responding to both growth potential and the company’s willingness to innovate.

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With Tele2 surging ahead on breakthrough technology and impressive returns, the real question for investors now is whether the stock is still trading at a bargain or if the market has already priced in all that future growth.

Most Popular Narrative: 50% Undervalued

Tele2 last closed at SEK158.5, a steep discount to the narrative fair value of SEK231.74, according to the most-widely followed market perspective. This substantial gap points to major expectations for future upside if Tele2 executes on its transformation initiatives and industry demands hold steady. Let’s look at the key driver that shapes this bullish view.

The company's accelerated transformation program, which includes significant workforce reductions, systematic contract renegotiations, and a shift to digital-first/direct channels, is driving substantial and sustainable operating expense reductions. Positive momentum for net margin and EBITDAaL expansion has been observed and is expected to continue.

Read the complete narrative.

Curious what’s really fueling this big valuation gap? The intrigue centers on profit expansion and a model that rewards operational discipline coupled with sector-leading efficiency. Find out the growth levers and profit assumptions that could disrupt expectations and justify that premium narrative fair value.

Result: Fair Value of $231.74 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing fierce competition and the challenge of finding new cost efficiencies could undermine Tele2’s projected margin gains and long-term growth narrative.

Find out about the key risks to this Tele2 narrative.

Build Your Own Tele2 Narrative

If the consensus view does not line up with your own thinking, take a few minutes to dive into the figures and build your personalized outlook, then Do it your way.

A great starting point for your Tele2 research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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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.