freenet FNTN.DE
GermanyCommunication Services · Telecom ServicesXetra · EUR
26.76 EUR (+16.6%)
9 analysts
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freenet AG is a German telecommunications provider that operates as a mobile virtual network operator (MVNO) and reseller of telephony, internet, and pay-TV services, in addition to offering financial and insurance services through its subsidiary. freenet presents solid financial health (score 7.52) and an attractive valuation (P/E 11.25, FCF yield 22.15%), but earnings growth is negative (-30.4%) and the dividend, with a payout of 101%, is not covered by earnings, raising doubts about its sustainability.
Listed on Xetra · Symbol FNTN.DE · ETR: FNTN · Currency EUR
Key points
from its scores- ✓Favourable backdrop8.7
- ✓Attractive valuation8.0
- ✓Very solid balance sheet7.5
- ✕Poor share-price trend4.8
- ✕Weak growth4.9
AI analysis
bottom line, main risk, context and newsThe high dividend yield and cheap valuation offer support, but the lack of earnings growth and unsustainable dividend coverage limit the upside potential.
The main risk is the sustainability of the dividend, as the payout exceeds 100% of earnings, which could force a cut if free cash flow does not support the payment.
Context and risks
freenet operates in Germany, a market with stable regulation, but its telecommunications business is subject to oversight by the Federal Network Agency (BNetzA), which can influence market conditions. The main risk is its dependence on Deutsche Telekom's network for its resale business, which limits its strategic flexibility.
Is freenet stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 23% below the Communication Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 11.2 | 17.1 | −34% |
| EV / EBITDA | 8.6 | 9.6 | −11% |
| Price / book | 2.0 | 2.3 | −15% |
| Price / sales | 1.0 | 1.9 | −49% |
Sector: median of the 102 Communication Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 8.0 out of 10 (median for Communication Services: 6.3).
Average analyst target: 26.76 EUR, +16.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 7.5 (sector 6.6), Growth 4.9 (sector 5.4).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Communication Services medianValuation
- P/E
- 11.2
- Forward P/E
- 10.0
- EV / EBITDA
- 8.6
- Price / book
- 2.0
- Price / sales
- 1.0
- PEG
- 0.85
- Market cap
- 2.7B EUR
- Enterprise value
- 3.5B EUR
Profitability
- ROE
- 17.7%
- ROA
- 6.9%
- ROIC (approx.)
- 12.7%
- Gross margin
- 26.9%
- Operating margin
- 10.3%
- Net margin
- 8.8%
- Free cash flow
- 599.5M EUR
- FCF yield
- 22.2%
- Cash conversion
- 148%
Solvency
- Total debt
- 836.4M EUR
- Net debt
- 754.8M EUR
- Cash
- 81.6M EUR
- EBITDA
- 404.3M EUR
- Net debt / EBITDA
- 1.87
- Debt / equity
- 60.66
- Current ratio
- 0.77
- Quick ratio
- 0.61
Growth
- Revenue growth
- +23.4%
- Earnings growth
- −30.4%
- EPS (TTM)
- 2.04 EUR
- EPS (forward)
- 2.31 EUR
Dividend
- Dividend yield
- 9.0%
- Payout
- 101.5%
Risk and market
- Beta
- 0.29
- Analyst consensus
- Hold (9)
- Target price
- 26.76 EUR
- 52-week range
- 22.16 – 33.92
Recent news
All FNTN.DE news →Compare it with its sector
All 102 in Communication Services →Frequently asked questions about freenet
Is freenet stock cheap or expensive?
On P/E and EV / EBITDA, it trades 23% below the Communication Services median on average. Valuation score: 8.0 out of 10 (median for Communication Services: 6.3). Average analyst target: 26.76 EUR, +16.6% versus the price. This is not investment advice.
What score does freenet get on MeridIAn Screener?
It scores 7.1 out of 10, rank 161 of 2,130 (better than 91% of the companies analysed). Its strongest category is Risk & Context (8.7) and its weakest, Momentum (4.8). Analysis of 08/10/2026.
What is freenet's P/E ratio?
Its P/E is 11.2: the share price equals 11.2 times earnings per share over the last 12 months. The Communication Services median is 17.1. Based on the earnings analysts expect, the forward P/E is 10.0.
How much is freenet worth on the stock market?
Its market capitalisation is 2.7B EUR and its enterprise value, debt included, is 3.5B EUR.
How much debt does freenet have?
Its net debt (debt minus cash) is 754.8M EUR. That is 1.87 times its EBITDA; the Communication Services median is 2.19.
Does freenet pay a dividend?
Yes: its dividend yield is 9.02% and it pays out 101% of its earnings.
How has freenet stock performed over the last year?
It has fallen 7.9% over the last year, excluding dividends. Over the last 52 weeks it has traded between 22.16 and 33.92 EUR. Past performance does not guarantee future results.
What do analysts think of freenet?
9 analysts cover it; their average recommendation is “Hold” and their average target is 26.76 EUR (+16.6% versus the price). It is an estimate, not market data.