Telstra Group Ltd
ASX: TLS · Communication Services · Telecom Services
- Market cap
- A$56.5B
- P/E (trailing)
- 25.7
- EPS (FY25)
- $0.19
- Dividend / share
- $0.20
- 52-week range
- –
- Intrinsic value
- A$1.98
Share price
ASX: TLS · AUD
Valuation
Full valuation analysis →Fair-value estimate per share, updated 26 Jul 2026
A$1.98 The median of our 3 model estimates
Well above fair value Trading at 2.5× the estimate. The market is pricing growth or risk that historical figures don't capture.
- Discounted cash flow
- A$0.42
- EPS growth model
- A$1.98
- P/E multiple
- A$4.78
Revenue
As reported · financial years
Earnings per share
Diluted · as reported
Profit margins
Gross, operating and net margin by financial year
Good Net margin of 9.6% in FY25: solid profitability for most industries.
Shares outstanding
Diluted · falling means buybacks, rising means dilution
Stable +0.0% year-on-year, -0.6% a year over 10 years: share count has been stable over the long run.
Working-capital days
Days of revenue sitting in receivables (DSO) and days of cost sitting in inventory (DIO)
Faster collections DSO of 59 days vs a 71-day norm: cash is being collected sooner than the historical norm.
Financial health
Latest financial year (FY25)
- Return on equity
- 15.6%
- Excellent
- Current ratio
- 0.56
- Tight
- Debt to equity
- 1.29
- Elevated
- Interest coverage
- 5.1×
- Adequate
Verdicts are graded against what's normal for the sector (Communication Services), not a one-size-fits-all bar. Hover a tile for the reasoning.
Dividends per share
Full dividend history →Per financial year, as reported in the accounts
Cash-covered payout 105% of FY25 earnings paid out: the dividend exceeds accounting earnings but is covered by free cash flow, since non-cash charges hold reported profit below the cash the business generates.
Free cash flow
Cash from operations minus capital spending: what the DCF model projects from
Excellent 159% of FY25 net profit became free cash: free cash flow exceeds reported profit.
Net debt
Borrowings and leases minus cash: the line shows how many years of operating profit (EBIT) would clear it
Typical for the sector Net debt of $17.0B is 5.1× FY25 operating profit: normal gearing for a capital-intensive business.
Five-year snapshot
Figures as reported in the company's filings
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | $21.6B | $21.3B | $22.7B | $22.9B | $22.7B |
| Net profit | $1.9B | $1.7B | $1.9B | $1.8B | $2.2B |
| EPS (diluted) | $0.16 | $0.14 | $0.17 | $0.14 | $0.19 |
| Dividend / share | $0.16 | $0.16 | $0.17 | $0.18 | $0.20 |
| Net margin | 8.6% | 7.9% | 8.5% | 7.8% | 9.6% |
What does Telstra (TLS) do?
Telstra Group, tracing back to a Melbourne start in 1901, is organised as a communications company sitting in the Telecom Services industry. It sells connectivity and related technology to households, small businesses, large corporates and government bodies both inside Australia and abroad, running the business through four divisions: Consumer and Small Business, Enterprise, Networks and IT, and InfraCo. Everyday customers reach the company through phone-based support, physical stores, independent dealers, apps and websites, with the Telstra Plus scheme used to reward ongoing custom.
For bigger customers such as corporations and government departments, the company builds and runs network capacity, hosted communication tools, cloud environments, security monitoring and industry-specific systems. A separate wholesale arm sells voice, data and related services to other carriers and internet providers and also builds digital platforms for them. The InfraCo division holds the underlying physical network assets — data centres, exchanges, ducts and fibre routes — leasing access to these under long-term contracts and constructing new fibre and exchange sites, while mobile tower infrastructure sits under the Amplitel entity. The business operated as Telstra Corporation until adopting the Telstra Group name in November 2022, has been listed on the ASX since 1997, employs 31,876 people full-time, and is led by chief executive Vicki Brady.
Common questions about TLS
Is TLS undervalued right now? +–
The median of our 3 model estimates puts Telstra Group Ltd's fair value at A$1.98 per share against a price of A$4.89, 147.0% above the estimate as at 26 Jul 2026. Model estimates are a starting point, not advice. See the full valuation breakdown.
Does TLS pay a dividend? +–
Telstra Group Ltd paid $0.20 per share in its most recent financial year with a recorded dividend. The dividend history chart above shows the full payout record.
How fast is TLS growing? +–
Revenue has compounded at -0.9% a year over the last five financial years, and -1.3% a year over ten.
What is TLS's P/E ratio? +–
Telstra Group Ltd trades on a trailing price-to-earnings ratio of 25.7, based on diluted earnings of $0.19 per share in FY25.
Compare TLS with peers
How has Telstra Group (TLS) performed financially over the years?
Telstra Group's reported revenue has trended lower across the decade of results on file, from $25.9B in FY2016 to $22.7B in FY2025. The path was not straight down: revenue bottomed near $21.3B in FY2022 before recovering to $22.9B in FY2024 and $22.7B in FY2025. Net income fell more sharply over the same span, from $5.8B in FY2016 to a low of $1.7B in FY2022, before ending FY2025 at $2.2B. Diluted earnings per share followed a similar arc, sliding from $0.47 to a range of $0.14 to $0.19 in the most recent years.
Profitability has narrowed alongside the revenue decline. The net income margin was 22.3% in FY2016 and stood at 9.6% in FY2025, while the gross profit margin, which was 72.0% in FY2016, was 63.9% in FY2025 after dipping as low as 16.4% in FY2020. The number of basic shares outstanding has drifted down slightly, from about 12.2 billion in FY2016 to 11.5 billion in FY2025.
As of 2026-07-05, with shares last closing at $4.98 on 2026-07-03, the company's valuation models point to estimates below that price: a P/E-ratio model of $4.76, a DCF model of $0.42, and an EPS-growth model of $1.97. The current P/E ratio of 26.21 sits slightly above the company's own five-year median P/E of 25.07. These are model outputs rather than guaranteed values and depend on the assumptions behind each approach.
AI-assisted analysis generated from Craytheon's verified financial data · Updated 4 Jul 2026 · How this works
Data is general information only, not financial advice. Figures are as reported in company filings (some ASX companies report in USD); share prices are AUD.