TELUS International (Cda) Inc.

TSX:TIXT Stock Report

Market Cap: CA$1.5b

TELUS International (Cda) Valuation

Is TIXT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of TIXT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Discounted Cash Flow
Simply Wall St
CA$18.77
Fair Value
71.6% undervalued intrinsic discount
12
Number of Analysts

Below Fair Value: TIXT (CA$5.33) is trading below our estimate of fair value (CA$18.77)

Significantly Below Fair Value: TIXT is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for TIXT?

Key metric: As TIXT is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for TIXT. This is calculated by dividing TIXT's market cap by their current revenue.
What is TIXT's PS Ratio?
PS Ratio0.4x
SalesUS$2.66b
Market CapUS$1.03b

Price to Sales Ratio vs Peers

How does TIXT's PS Ratio compare to its peers?

The above table shows the PS ratio for TIXT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.7x
GDI GDI Integrated Facility Services
0.3x2.8%CA$805.6m
BDI Black Diamond Group
1.4x5.0%CA$535.3m
CGY Calian Group
0.7x7.2%CA$523.5m
DXT Dexterra Group
0.4x-0.2%CA$513.5m
TIXT TELUS International (Cda)
0.4x3.4%CA$1.0b

Price-To-Sales vs Peers: TIXT is good value based on its Price-To-Sales Ratio (0.4x) compared to the peer average (0.7x).

Price to Sales Ratio vs Industry

How does TIXT's PS Ratio compare vs other companies in the North American Professional Services Industry?

28 CompaniesPrice / SalesEstimated GrowthMarket Cap
Industry Avg.1.4x6.6%
TIXT TELUS International (Cda)
 0.4x3.4%US$1.03b
TIXT 0.4xIndustry Avg. 1.4xNo. of Companies27PS01.63.24.86.48+
28 CompaniesEstimated GrowthMarket Cap
Industry Avg.1.4x14.1%
TIXT TELUS International (Cda)
 0.4x61.4%US$1.03b
No more companies

Price-To-Sales vs Industry: TIXT is good value based on its Price-To-Sales Ratio (0.4x) compared to the North American Professional Services industry average (1.4x).

Price to Sales Ratio vs Fair Ratio

What is TIXT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

TIXT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.4x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: TIXT is good value based on its Price-To-Sales Ratio (0.4x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst TIXT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$5.33
CA$6.41
+20.3%
12.4%CA$7.79CA$5.00n/a12
Feb ’26CA$5.60
CA$6.54
+16.9%
17.5%CA$9.45CA$5.09n/a13
Jan ’26CA$5.65
CA$6.30
+11.5%
19.7%CA$9.14CA$4.22n/a12
Dec ’25CA$5.40
CA$6.21
+15.0%
19.3%CA$9.09CA$4.19n/a13
Nov ’25CA$5.32
CA$6.36
+19.6%
23.1%CA$10.47CA$4.19n/a13
Oct ’25CA$5.06
CA$6.23
+23.2%
23.0%CA$10.17CA$4.07n/a13
Sep ’25CA$4.94
CA$6.31
+27.8%
22.4%CA$10.13CA$4.05n/a13
Aug ’25CA$9.02
CA$12.85
+42.5%
33.6%CA$25.29CA$9.02n/a14
Jul ’25CA$7.90
CA$12.85
+62.7%
33.6%CA$25.29CA$9.02n/a14
Jun ’25CA$7.76
CA$12.85
+65.6%
33.6%CA$25.29CA$9.02n/a14
May ’25CA$11.40
CA$16.15
+41.7%
30.5%CA$27.54CA$11.01n/a15
Apr ’25CA$11.48
CA$16.69
+45.4%
27.6%CA$27.13CA$10.85n/a15
Mar ’25CA$13.75
CA$17.07
+24.2%
28.8%CA$29.03CA$10.80n/a14
Feb ’25CA$12.04
CA$15.55
+29.2%
35.6%CA$28.81CA$9.38CA$5.6014
Jan ’25CA$11.38
CA$15.15
+33.2%
32.6%CA$25.19CA$9.28CA$5.6514
Dec ’24CA$10.32
CA$15.54
+50.5%
34.2%CA$26.15CA$9.64CA$5.4014
Nov ’24CA$8.99
CA$18.37
+104.3%
27.8%CA$27.65CA$11.06CA$5.3214
Oct ’24CA$10.33
CA$19.74
+91.1%
20.5%CA$26.83CA$14.76CA$5.0614
Sep ’24CA$12.09
CA$19.74
+63.3%
20.5%CA$26.83CA$14.76CA$4.9414
Aug ’24CA$12.09
CA$21.99
+81.9%
18.0%CA$27.66CA$14.49CA$9.0213
Jul ’24CA$20.09
CA$33.50
+66.7%
19.0%CA$46.37CA$22.52CA$7.9014
Jun ’24CA$20.61
CA$34.43
+67.1%
16.4%CA$47.08CA$26.90CA$7.7615
May ’24CA$26.74
CA$36.93
+38.1%
11.2%CA$47.38CA$29.78CA$11.4016
Apr ’24CA$27.31
CA$36.28
+32.8%
11.6%CA$46.68CA$29.34CA$11.4815
Mar ’24CA$29.23
CA$36.28
+24.1%
11.6%CA$46.68CA$29.34CA$13.7515
Feb ’24CA$31.89
CA$37.45
+17.4%
15.3%CA$50.59CA$30.62CA$12.0415
Analyst Price Target
Consensus Narrative from 12 Analysts
CA$6.45
Fair Value
17.3% undervalued intrinsic discount
12
Number of Analysts

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/02/17 07:04
End of Day Share Price 2025/02/14 00:00
Earnings2024/12/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

TELUS International (Cda) Inc. is covered by 20 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ramsey El-AssalBarclays
Keith BachmanBMO Capital Markets Equity Research
Cassie ChanBofA Global Research