A Look At Deutsche Telekom (XTRA:DTE) Valuation As New 2026 Share Buy-Back Plan Is Announced

New buy-back program puts Deutsche Telekom’s capital return in focus

Deutsche Telekom (XTRA:DTE) has launched a fresh share buy-back program for 2026 after completing its 2025 effort, putting the company’s capital return policy and share count trends back in the spotlight for investors.

The 2025 program involved repurchasing about 65.4 million shares, around 1.3% of the share capital. For 2026, the Board has approved up to €2b of buy-backs running from January 5 through year end.

Management plans to cancel most of the acquired shares, with a portion reserved for executive remuneration and employee share offerings. This approach can influence both earnings per share mechanics and ownership structure over time.

See our latest analysis for Deutsche Telekom.

At a share price of €27.47, Deutsche Telekom’s recent 90 day share price return of a 5.44% decline contrasts with a much stronger 3 year total shareholder return of 52.04% and 5 year total shareholder return of 113.70%. This suggests that long term momentum has been stronger than the latest pullback as investors weigh the new buy back program against broader sentiment on the stock.

If this kind of capital return story has your attention, it could be a good moment to widen your search and check out fast growing stocks with high insider ownership.

With annual revenue of €121.0b, net income of €12.1b and a value score of 6, plus a sizable discount to analyst targets and intrinsic estimates, is Deutsche Telekom quietly cheap, or is the market already pricing in future growth?

Most Popular Narrative: 27.8% Undervalued

Compared with Deutsche Telekom’s last close at €27.47, the most followed narrative arrives at a higher fair value anchored in detailed growth and margin assumptions.

Analysts expect earnings to reach €11.8 billion (and earnings per share of €2.5) by about September 2028, down from €12.6 billion today. However, there is some disagreement amongst the analysts with the more bearish ones expecting earnings as low as €8.8 billion.

Read the complete narrative.

Curious how a higher fair value can sit alongside flat revenues and thinner margins? The answer lies in earnings resilience, share count shifts and the profit multiple analysts are baking in.

Result: Fair Value of $38.07 (UNDERVALUED)

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

However, this depends on assumptions that could be challenged if European fiber projects deliver weak returns or if T Mobile US encounters regulatory or competitive setbacks.

Find out about the key risks to this Deutsche Telekom narrative.

Build Your Own Deutsche Telekom Narrative

If you see the story differently, or prefer to test the numbers yourself, you can build a custom view of Deutsche Telekom in a few minutes with Do it your way.

A great starting point for your Deutsche Telekom research is our analysis highlighting 6 key rewards and 1 important warning sign 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.

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