BCE (TSX:BCE): Exploring Valuation Perspectives After Recent Modest Share Price Gains

This week, BCE (TSX:BCE) shares edged up slightly with a 0.2% gain by the close. Over the past month, the stock has delivered a 5% return, which has caught the attention of income-focused investors.

See our latest analysis for BCE.

Despite BCE’s mild share price gains over the past month, the bigger story is that total shareholder return remains deep in the red, down more than 20% over the past year. The short-term momentum appears tepid and hints that the market’s perception of BCE’s risks and growth prospects may still be shifting after last year’s selloff.

If you’re interested in broadening your search beyond BCE, now is a good opportunity to discover fast growing stocks with high insider ownership

With BCE trading modestly above recent lows and a sizable discount still to analyst targets, investors are left to wonder if there is value being overlooked or if the market is accurately factoring in future growth.

Most Popular Narrative: 6.5% Undervalued

BCE’s widely followed narrative sets fair value at CA$35.97, a modest premium to the last close of CA$33.64. This suggests optimism is returning to the shares.

Bullish analysts highlight increased confidence in BCE's growth trajectory and financial outlook, especially in light of improved balance sheet strength compared to previous years. There is consensus that recent strategic moves, including deal activity, will improve the company’s long-term earnings profile and support sustained revenue and EBITDA growth beginning in 2026.

Read the complete narrative.

Want to know why this valuation stands apart? The most watched narrative assumes accelerating growth and higher profit margins, but not everyone agrees. Which profit estimates and bold projections push BCE into “undervalued” territory? Unpack the full story behind the numbers; some may surprise you.

Result: Fair Value of $35.97 (UNDERVALUED)

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

However, persistent regulatory hurdles or slower-than-expected fiber expansion could still challenge BCE’s margin progress and cast doubt on the current optimism regarding its valuation.

Find out about the key risks to this BCE narrative.

Another View: Looking at Price Ratios

Switching to valuation based on price-to-earnings ratios, BCE appears pricey. Its current ratio sits at 72.4x, well above both the global Telecom average of 16.7x and its peer average of 15.5x. Even the "fair ratio" estimate is 20x. This wide gap raises questions about whether BCE’s shares may be vulnerable if market sentiment shifts.

See what the numbers say about this price — find out in our valuation breakdown.

Build Your Own BCE Narrative

If you want a fresh perspective or would like to dig into the details yourself, it’s easy to shape your own narrative in just a few minutes with Do it your way.

A great starting point for your BCE research is our analysis highlighting 2 key rewards and 4 important warning signs 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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