---
skill: idea-generation
plugin: equity-research@claude-for-financial-services
slash_command: /screen
test_name: Vodafone (anchor) → Telefónica (top result)
data_source: EODHD valuation_screen
as_of: 2026-05-05
real_deliverable: markdown shortlist (this is the native output)
---

# Deep-value telecom screen — anchored on Vodafone

**Generated:** 2026-05-05
**Author:** /screen (claude-for-financial-services :: equity-research)
**Anchor:** VOD.US ADR (P/B 0.58, EV/EBITDA 5.45x, div yld 3.5%)
**Universe:** 84 Telecom Services names in EODHD `valuation_screen`

## Screen criteria

- Sector = Communication Services, Industry = Telecom Services
- Market cap ≥ $1B (local currency)
- P/B between 0 and 1.5
- EV/EBITDA between 2 and 8
- Dividend yield ≥ 3%
- Sorted ascending by EV/EBITDA

**Hits:** 18. Two excluded as bad data (TV.US 58% div yield, PHI.US 457% div yield — currency / special-distribution artifacts).

## Comparison vs. anchor (cleaned)

| Ticker | Name | Country | Mkt Cap (B, local) | P/B | EV/EBITDA | Div Yld | FCF Yld | ROE | Rev Growth |
|---|---|---|---|---|---|---|---|---|---|
| **TEF.MC** | Telefónica | Spain | 22.0 | 1.14 | 4.19x | 8.0% | 23.6% | -0.3% | 1.6% |
| **ORA.PA** | Orange | France | 46.9 | 1.48 | 3.44x | 4.1% | 7.4% | 7.4% | -8.8% |
| **PROX.BR** | Proximus | Belgium | 2.1 | 0.50 | 3.18x | 16.8% | 6.0% | 10.4% | 6.4% |
| **TELIA1.HE** | Telia | Finland | 16.8 | 0.30 | 2.43x | 46.7%* | 43.4%* | 12.8% | 0.4% |
| **0941.HK** | China Mobile | China | 1,808.7 | 1.33 | 4.92x | 5.4% | 8.8% | 10.2% | 3.1% |
| **0728.HK** | China Telecom | China | 462.1 | 1.02 | 3.02x | 5.2% | 11.9% | 7.3% | 4.2% |
| **CMCSA.US** | Comcast | USA | 105.9 | 1.10 | 4.23x | 4.4% | 0.0% | 21.4% | 0.0% |
| **VOD.US** | Vodafone (anchor) | USA | 35.0 | 0.58 | 5.45x | 3.5% | 0.0% | -6.6% | 0.0% |

\* Telia yield distorted by special distribution — verify before use.

## Top 3 to research first

### 1. Telefónica (TEF.MC) — Long
**Thesis:** Spanish incumbent at trough multiple with simplified portfolio.
- Trades EV/EBITDA 4.2x vs European telecom average ~6x; 8% dividend covered by FCF (23% FCF yield)
- Market is anchored on years of leverage / LatAm overhang; portfolio simplification (Argentina/Peru exits) is reducing FX volatility
- **Catalyst:** STC stake, Vivendi-style activism rumors, deleveraging milestones
- **Risk:** Spain mobile pricing competition; LatAm FX; KPN cross-holding overhang

### 2. Orange (ORA.PA) — Long
**Thesis:** Negative revenue print masks Africa & MASMOVIL JV tailwinds.
- 3.4x EV/EBITDA, 4% yield; reported -8.8% revenue growth is mostly perimeter / divestments, not organic
- Africa & Middle East segment growing double digits; Spain MASMOVIL JV synergy capture underway
- **Catalyst:** MASMOVIL synergies, possible Spain exit, infrastructure carve-outs
- **Risk:** French regulatory pressure; capex cycle for fiber

### 3. Proximus (PROX.BR) — Long
**Thesis:** Smallest, deepest discount, single-country focus.
- P/B 0.5x, 17% optical dividend yield — coverage MUST be verified before sizing
- Belgian fixed/mobile incumbent; clean balance sheet relative to peers
- **Catalyst:** Net-fiber JV with Eurofiber/Telenet competitive dynamics; potential dividend rebase
- **Risk:** Dividend cut risk is the obvious one given the 17% optical yield

## Honourable mentions
- China Mobile (0941.HK) — cheapest big-cap by EV/EBITDA; geopolitical/governance gating
- Comcast (CMCSA.US) — different business model (cable + parks + media); likely miscategorized as pure telecom
- Rogers, China Telecom, China Unicom — pass screen but each has structural differences

## Data quality flags
- TV.US (Grupo Televisa), PHI.US (PLDT) — excluded; clearly broken div / FCF figures
- VOD.LSE shows P/B 53x and negative ROE due to write-downs — anchored on **VOD.US ADR** instead

## Suggested next steps
- Spot-check TEF/ORA/PROX dividend coverage from `cash_flows` and `splits_dividends` tables
- Pull `forward_pe_snapshots` for consensus vs trailing comparison
- Run /comps on TEF + ORA + Deutsche Telekom + BT + Telenor for full European telecom comp set