BCE (TSX:BCE) Valuation: Profit Rebound and Buyback Plans Renew Focus on Long-Term Value

BCE (TSX:BCE) made headlines after reporting a major swing to profitability in its recent earnings for Q3 and the first nine months of 2025. Alongside stronger results, BCE revealed plans to repurchase up to 10% of its preferred shares, reinforcing management’s outlook on value.

See our latest analysis for BCE.

BCE’s latest profit rebound and buyback announcement have stirred investor interest, but that momentum hasn’t yet translated into the share price. A 3.3% decline year-to-date, alongside a 1-year total shareholder return of -6.6%, shows that sentiment remains cautious. Over the past three years, BCE has posted a substantial -34% total shareholder return, underperforming the broader market and reminding investors that, despite current strength, confidence in a turnaround is still early and the valuation will be closely watched in the months ahead.

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With shares still down from their highs, but a clear rebound in profits and bold buyback plans underway, investors have to ask whether BCE is now undervalued or if the market is already factoring in the company’s next stage of growth.

Most Popular Narrative: 11% Undervalued

BCE’s fair value is pegged at CA$36.41 per share, which is meaningfully above its last close of CA$32.41. This spread catches attention and hints at powerful forces driving analyst expectations upward.

Momentum in BCE's AI-powered enterprise solutions (Ateko, cybersecurity, and Bell AI Fabric) is opening up new high-margin business lines. These initiatives are benefiting from the proliferation of AI workloads and digital transformation among Canadian enterprises, with positive implications for consolidated revenues and long-term EBITDA growth.

Read the complete narrative.

Want to know what’s juicing this ambitious fair value? The leading narrative is making bold bets on profit margin expansion and accelerating cash flows from digital services. The actual playbook behind these projections might surprise you. Dive in to unravel the numbers and see what could push BCE’s value even higher.

Result: Fair Value of $36.41 (UNDERVALUED)

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

However, execution risks and regulatory headwinds remain. Persistent pricing pressures or delays in fiber expansion could quickly undermine this improving outlook.

Find out about the key risks to this BCE narrative.

Build Your Own BCE Narrative

If you see things differently or want to run your own numbers, it’s quick and easy to craft a personal narrative in just minutes. Do it your way

A great starting point for your BCE research is our analysis highlighting 3 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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