TELUS International (Cda) Inc.

TSX:TIXT Stock Report

Market Cap: CA$2.2b

TELUS International (Cda) Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings 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.

Below Fair Value: TIXT (CA$8.08) is trading below our estimate of fair value (CA$34.78)

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?

Other financial metrics that can be useful for relative valuation.

TIXT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.2x
Enterprise Value/EBITDA7x
PEG Ratio0.6x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TIXT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average40.1x
BYD Boyd Group Services
56.5x37.6%CA$5.8b
CGY Calian Group
31.8x30.7%CA$644.4m
GDI GDI Integrated Facility Services
52x43.2%CA$780.5m
EFN Element Fleet Management
20x14.9%CA$9.5b
TIXT TELUS International (Cda)
23.8x37.4%CA$1.6b

Price-To-Earnings vs Peers: TIXT is good value based on its Price-To-Earnings Ratio (23.8x) compared to the peer average (40.1x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a15.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: TIXT is good value based on its Price-To-Earnings Ratio (23.8x) compared to the North American Professional Services industry average (23.9x).


Price to Earnings Ratio vs Fair Ratio

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

TIXT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio23.8x
Fair PE Ratio37.9x

Price-To-Earnings vs Fair Ratio: TIXT is good value based on its Price-To-Earnings Ratio (23.8x) compared to the estimated Fair Price-To-Earnings Ratio (37.9x).


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$8.08
CA$12.91
+59.8%
33.6%CA$25.41CA$9.07n/a14
Jun ’25CA$7.76
CA$12.91
+66.4%
33.6%CA$25.41CA$9.07n/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$9.38n/a14
Jan ’25CA$11.38
CA$15.15
+33.2%
32.6%CA$25.19CA$9.28n/a14
Dec ’24CA$10.32
CA$15.54
+50.5%
34.2%CA$26.15CA$9.64n/a14
Nov ’24CA$8.99
CA$18.37
+104.3%
27.8%CA$27.65CA$11.06n/a14
Oct ’24CA$10.33
CA$19.74
+91.1%
20.5%CA$26.83CA$14.76n/a14
Sep ’24CA$12.09
CA$19.74
+63.3%
20.5%CA$26.83CA$14.76n/a14
Aug ’24CA$12.09
CA$21.99
+81.9%
18.0%CA$27.66CA$14.49n/a13
Jul ’24CA$20.09
CA$33.50
+66.7%
19.0%CA$46.37CA$22.52n/a14
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
Jan ’24CA$26.73
CA$40.61
+51.9%
21.3%CA$68.29CA$32.78CA$11.3815
Dec ’23CA$28.43
CA$41.24
+45.1%
20.7%CA$67.46CA$35.08CA$10.3215
Nov ’23CA$33.58
CA$45.99
+37.0%
17.4%CA$68.03CA$35.38CA$8.9915
Oct ’23CA$36.16
CA$43.68
+20.8%
19.8%CA$65.47CA$30.12CA$10.3314
Sep ’23CA$37.05
CA$43.02
+16.1%
19.8%CA$64.21CA$29.54CA$12.0914
Aug ’23CA$35.46
CA$40.64
+14.6%
22.3%CA$64.37CA$29.61CA$12.0914
Jul ’23CA$32.30
CA$40.98
+26.9%
22.4%CA$64.61CA$29.72CA$20.0914
Jun ’23CA$31.30
CA$40.98
+30.9%
22.4%CA$64.61CA$29.72CA$20.6114

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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