About TELEFONICA BRASIL S.A.
Telefônica Brasil S.A., together with its subsidiaries, provides mobile and fixed telecommunications services to residential and corporate customers in Brazil. Its fixed line services portfolio includes local, domestic long-distance, and international long-distance calls; and mobile portfolio comprises voice and broadband internet access through 3G, 4G, 4.5G, and 5G as well as mobile value-added services and wireless roaming services. The company also offers data services, including broadband and mobile data services. In addition, it provides pay TV services through direct to home satellite technology, IPTV, and cable, as well as pay-per-view and video on demand services; network services, such as rental of facilities; other services comprising internet access, private network connectivity, computer equipment leasing, extended service, caller identification, voice mail, cellular blocker, and others; wholesale services, including interconnection services to users of other network providers; and digital services, such as entertainment, cloud, and security and financial services. Further, the company offers multimedia communication services, which include audio, data, voice and other sounds, images, texts, and other information, as well as sells devices, such as smartphones, broadband USB modems, and other devices. Additionally, it provides telecommunications solutions and IT support to various industries, such as retail, manufacturing, services, financial institutions, government, etc.
It markets and sells its solutions through own stores, dealers, retail and distribution channels, door-to-door sales, and outbound tele sales. The company was formerly known as Telecomunicações de São Paulo S.A. - TELESP and changed its name to Telefônica Brasil S.A. in October 2011. The company was incorporated in 1998 and is headquartered in São Paulo, Brazil.
VIV operates in the Transportation, Communications, Electric, Gas, And Sanitary Services | Communication | approximately 34,000 employees | led by CEO Christian M. Gebara.
$12.5 billion 13.9x P/E 1.1x P/B 3.3x EV/EBITDA 7.0% ROE -15.9% rev. growth 5.6% yield
TELEFONICA BRASIL S.A. earns a Buy rating from our quantitative model with a composite score of 74/100, ranking #26 among 7,333 U.S. stocks. The model sees a stock with an above-average factor profile — not without risks, but with enough quantitative support to warrant a constructive outlook.
The strongest dimension is value at 90/100, which places VIV in the top 10 percent of all stocks on this measure. quality at 82/100 provides secondary support. No single factor falls below the average threshold, which is a constructive sign.
Within the Transportation, Communications, Electric, Gas, And Sanitary Services sector, VIV ranks 6th out of 50 peers, placing it in the 88th percentile. At $12.5 billion, the company is a well-established large cap.
Quality Analysis
TELEFONICA BRASIL S.A.'s quality score of 82/100 places it among the top profitability performers in the market. The quality factor evaluates margins, return on equity, return on assets, and earnings consistency — the fundamental building blocks of a durable business.
Return on equity of 7.0% trails the sector median of 12.0%. Gross margins of 43.9% are competitive for the sector. Operating margins of 15.5% sit above the 15.0% sector average.
Net margins of 9.9% show the company is profitable, though not with exceptional efficiency.
Valuation Assessment
A value score of 90/100 puts VIV in the top 10 percent of all stocks on cheapness — suggesting the market is significantly underpricing the company's fundamentals. Key valuation metrics include a P/E ratio of 13.9x, an EV/EBITDA of 3.3x, a price-to-book of 1.1x, a price-to-sales of 1.4x. Deep value scores like this historically correlate with above-average forward returns, though they can also reflect legitimate concerns about business quality that the value factor does not capture.
Momentum & Timing
A momentum score of 79/100 shows VIV is trending above average, with its stock price outperforming the majority of the market. This is not explosive, meme-stock-style momentum — it is the gradual, fundamental-driven kind that tends to persist.
Revenue growth of -15.9% is declining, which makes the momentum signal more precarious. A beta of 0.31 means TELEFONICA BRASIL S.A. moves with less volatility than the market, which can be attractive for risk-conscious investors.
Our entry timing model currently signals Neutral, which warrants caution despite the price trend.
Risk Factors
No investment comes without risks, and honest analysis requires flagging them clearly:
- Model limitations. Quantitative models measure what is measurable — financial ratios, price trends, leverage — but cannot capture qualitative factors like management quality, competitive positioning, or pending litigation. This analysis should be supplemented with fundamental due diligence.
- Market regime risk. Factor-based strategies perform differently across market regimes. The current factor exposures that support TELEFONICA BRASIL S.A.'s rating may become headwinds if the macro environment shifts — for example, if interest rates move sharply or if sector rotation accelerates.
Bottom Line
TELEFONICA BRASIL S.A. earns a Buy rating with a composite score of 74/100 and 4 out of 5 stars, ranking #26 among 7,333 stocks. The factor profile is constructive — not without blemishes, but with enough quantitative support to position VIV above the majority of the market.
Explore the full VIV analysis page for interactive factor breakdowns, or view the complete stock rankings.
Analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research before making investment decisions.
