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    Tele2 (OM:TEL2 B) Could Be 9% Undervalued Following Its Half Year Results

    Simply Wall St·07/27/2026 21:21:12
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    Tele2 (OM:TEL2 B) shares drew attention after second quarter and half year 2026 results, with sales and earnings data offering fresh clues on how the telecom group is performing across its Nordic and Baltic markets.

    See our latest analysis for Tele2.

    Tele2's latest earnings update comes after a mixed price pattern, with the stock rising 1.28% on the day and 4.91% over the past week, while its 30 day and 90 day share price returns declined 6.10% and 11.16% respectively. Even so, momentum over longer periods remains stronger, with a 6.63% year to date share price return and a 1 year total shareholder return of 15.57%, alongside very large 3 year and strong 5 year total shareholder returns that suggest long term holders have already seen substantial value from the stock.

    If Tele2's recent move has you thinking about where else capital could work, it may be worth broadening your watchlist with 107 top founder-led companies

    Tele2 now trades at a discount to both analyst targets and an estimated fair value, even after the recent share price rebound. Is the market correctly pricing in risk, or leaning too far toward caution as the valuation work begins?

    Most Popular Narrative: 8.8% Undervalued

    Tele2's most followed valuation narrative points to a fair value of SEK181.54 per share, compared with a last close of SEK165.60. This frames the current discount and the assumptions analysts are relying on.

    The company's accelerated transformation program, including significant workforce reductions, systematic contract renegotiations, and a shift to digital first or direct channels, is driving substantial, sustainable operating expense reductions, with positive momentum for net margin and EBITDAaL expansion observed and expected to continue.

    Read the complete narrative.

    Want to see what sits behind that margin story and the fair value uplift for Tele2? The narrative leans heavily on specific revenue trends, profit assumptions and a future earnings multiple that might surprise you. Curious which of those levers does most of the heavy lifting in the model? The full narrative joins the dots.

    Result: Fair Value of SEK181.54 (UNDERVALUED)

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

    However, this Tele2 narrative could quickly be challenged if Swedish broadband pricing pressure persists, or if cost savings fade before revenue growth or IoT demand can offset it.

    Find out about the key risks to this Tele2 narrative.

    Next Steps

    If the mixed sentiment around Tele2 leaves you unsure, now is a good moment to look at the numbers yourself and weigh both sides. To see the balance between concerns and potential upsides in one place, review the 4 key rewards and 4 important warning signs

    Looking for more investment ideas beyond Tele2?

    If Tele2 is on your radar, you do not need to stop there. A wider set of quality ideas can help you build a more resilient and opportunity rich portfolio.

    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.