Freenet
The Freenet share currently appears slightly **cheap** to fairly valued, with solid earnings and a very high, sustainable dividend yield.
#1 P/E ratio (trailing & forward)
- Current share price (March 2026, approx.): around EUR 26-28 per share (Xetra/Gettex range).
- Earnings per share 2024: approx. 2.08-2.30 EUR.[1][2]
- This results in a current P/E ratio in the 12-13 range (trailing).
- Forward P/E ratio according to estimates 2026e-2028e: approx. 9-11.
Sector comparison (telecommunications/service providers in Europe):
- Typical P/E range: approx. 13-18 for established telcos with moderate growth.
- Freenet is at the lower end at 9-13 → slightly favorable valuation.
| Key figure | Freenet value | Industry classification |
|---------------------|-------------:|--------------------|
| P/E ratio 2024 (trailing) | approx. 12-13[1][2] | Lower middle |
| P/E ratio 2026e | approx. 11.2[2] | Lower end |
| P/E 2028e | approx. 9.7[2] | Favorable |
## 2. earnings per share (EPS)
- EPS 2024: approx. 2.08-2.30 EUR per share.
- Analyst estimates: EPS increase to approx. 2.34 EUR (2026e), 2.56 EUR (2027e), 2.69 EUR (2028e).
- This corresponds to expected EPS growth of roughly 3-5% p.a. over the next 3-5 years[2][8].
| Year | EPS in EUR |
|------|-----------:|
| 2024 | ~2,08-2,30[1][2] |
| 2025e | ~2,30-2,34[2][8] |
| 2027e | ~2,56[2] |
| 2028e | ~2,69[2] |
The trend shows solid, but not very dynamic growth - typical for mature telco business models.
## 3. EBIT & EBIT margin
- Revenue 2025 according to annual report: approx. EUR 2.44 billion, slightly declining.
- Adjusted EBITDA Q1 2025 almost at previous year's level (EUR 126.1 million vs. EUR 127.1 million).
- The EBIT margin is historically in the mid single-digit to low double-digit percentage range, with a stable to slightly increasing trend thanks to the focus on high-margin services.
Conclusion: operationally stable, no growth story, but reliable cash flows - important for the dividend story.
## 4th dividend
- Proposed dividend for FY 2025: EUR 2.07 per share.
- History (rounded): 1,50 (2020), 1,57 (2021), 1,68 (2022), 1,77 (2023), ~1,85-1,97 (2024), ~2,09 (2025).
- Forecasts: EUR 2.08 (2026e), EUR 2.18 (2027e), EUR 2.24-2.25 (2028e).
- Current dividend yield depending on share price: approx. 7-8%.
Payout ratio:
- With EPS of just over EUR 2.1-2.3 and dividends of around EUR 2.0-2.1, the payout ratio is close to 90-100%.
- This is high, but typical for Freenet, as the focus is clearly on distributions rather than aggressive growth.
| Year | Dividend (EUR) | Yield approx. | Comment |
|------|----------------:|------------:|-----------|
| 2022 | 1.68 | ~6-7% | Rising |
| 2023 | 1.77 ~7% | Increase |
| 2024 | ~1.85-1.97 ~7% | Further increase |
| 2025 | 2.07 (proposal) | ~7-8% | Very high |
| 2026e | 2.08 | ~8% | Stable high |
## 5 Price history vs. benchmark
- 1-year performance (until spring 2026): moderately positive to sideways, with volatility and dividends as the main return drivers.
- Over 3-5 years: significant fluctuations, several drawdowns of over 30%, but overall decent total return including dividends.
- Compared to MDAX/TecDAX: price performance rather below average, but thanks to high dividends the total return is usually in the midfield.
Exemplary points:
- Strong corrections 2018-2020 with drawdowns of up to approx. -57%.
- More recent years show stable sideways phase around the high dividend yield.
| Period | Price character Freenet | Classification vs. index |
|---------|------------------------|----------------------|
| 1 year | Sideways/slightly positive
Rather similar/slightly weaker |
| 3 years | Volatile, several setbacks
Share price often weaker, dividend compensated |
| 5 years | Sideways with drawdowns
Total return in midfield |
## 6. overall rating
- Valuation: P/E ratio in the lower sector range, stable cash flow, very high dividend → Freenet currently looks rather **favorable** to fair from the perspective of classic key figures.
- Opportunity: Attractive current yield of ~7-8% p.a., moderate earnings growth, basic telco provider with a large subscriber base.
- Risk: High payout ratio leaves little buffer, limited structural growth, share price tends to remain sideways/volatile and is heavily dependent on the dividend story.
Short summary: For income-oriented investors looking for a high dividend yield with moderate risk and limited growth, the Freenet share is currently valued rather favorably; growth-oriented investors will find more attractive stories elsewhere.
Sources:
[1] freenet AG share | A0Z2ZZ | DE000A0Z2ZZ5 | share price https://live.deutsche-boerse.com/aktie/freenet-ag/kennzahlen
[2] FREENET SHARE | FRN | Share price | DE000A0Z2ZZ5 https://www.finanzen.net/aktien/freenet-aktie
[3] FREENET SHARE Dividend | Annual General Meeting https://www.finanzen.net/dividende/freenet
[4] freenet AG: Dividend history and forecasts - Marketscreener https://de.marketscreener.com/kurs/aktie/FREENET-AG-130481418/bewertung-dividende/
[5] freenet AG share: Annual Report 2025 confirms decline in sales https://www.ad-hoc-news.de/boerse/ueberblick/freenet-ag-aktie-geschaeftsbericht-2025-bestaetigt-umsatzrueckgang/68950779
[6] Freenet historical share prices https://www.onvista.de/aktien/historische-kurse/Freenet-Aktie-DE000A0Z2ZZ5
[7] FREENET SHARE historical prices | closing prices | A0Z2ZZ https://www.finanzen.net/historische-kurse/freenet
[8] FREENET SHARE Estimates | Forecasts & Expectations | A0Z2ZZ https://www.finanzen.net/schaetzungen/freenet
[9] freenet makes a solid start to the 2025 financial year and confirms ... https://www.freenet.ag/presse/presse-informationen/pressemitteilungen/freenet-ag/2025/05/freenet-startet-solide-in-das-geschaftsjahr-2025-und-bestatigt-prognose.html
[10] Freenet AG - Wikipedia https://de.wikipedia.org/wiki/Freenet_AG
[11] Freenet confirms preliminary results for the financial year ... https://de.marketscreener.com/boerse-nachrichten/freenet-bestaetigt-die-vorlaeufigen-ergebnisse-fuer-das-geschaeftsjahr-2025-den-vorschlag-der-dividende-ce7e5edfdb89f627
[12] freenet AG share: Confirmed annual figures 2025 and ... https://www.ad-hoc-news.de/boerse/news/ueberblick/freenet-ag-aktie-bestaetigte-jahreszahlen-2025-und-dividendenanhebung-auf/68943646
[13] Freenet share performance since inception (A0Z2ZZ | FNTN) https://aktie.traderfox.com/historie/DE000A0Z2ZZ5/LS/freenet-ag
[14] freenet | Tariffs in all networks and cheap cell phone offers https://www.freene
t.de
[15] freenet Internet - Easy access to a flexible Internet tariff https://www.freenet-internet.de
