Evaluating BCE (TSX:BCE)’s Valuation After Its Hardware‑Free Fibe TV Streaming Expansion

BCE (TSX:BCE) just pushed its TV strategy further into streaming, rolling out hardware free Fibe TV across Ontario and Quebec so customers can watch live and on demand content through existing Smart TVs and devices.

See our latest analysis for BCE.

These streaming upgrades come as BCE’s CA$32.62 share price has drifted lower over the medium term, with a weak three year total shareholder return of around negative 33 percent signalling that momentum has been fading despite steady telecom demand.

If BCE’s shift toward hardware free TV has you rethinking the communication and media space, it might also be worth exploring aerospace and defense stocks as another corner of the market where structural trends are reshaping long term growth stories.

With BCE shares trailing their long term averages despite modest revenue growth and a small discount to analyst targets, investors may be weighing whether today’s weakness represents a potential opportunity, or whether the current price already reflects the company’s expected future growth.

Most Popular Narrative Narrative: 11% Undervalued

Using a fair value of about CA$36.47 per share against BCE’s CA$32.62 last close, the most followed narrative sees upside if long term targets are met.

Momentum in BCE's AI powered enterprise solutions (Ateko, cybersecurity, and Bell AI Fabric) is opening up new high margin business lines, 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.

Curious how modest headline growth assumptions still produce a premium future earnings multiple and sizable upside to today’s price? Explore the detailed revenue, margin, and discount rate math that drives this valuation path.

Result: Fair Value of $36.47 (UNDERVALUED)

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

However, lingering regulatory uncertainty and intense wireless competition could derail BCE’s margin expansion plans and delay the earnings and valuation inflection that analysts anticipate.

Find out about the key risks to this BCE narrative.

Build Your Own BCE Narrative

If this perspective does not quite match your own views, you can review the numbers yourself and build a personalized narrative in minutes, 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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