BCE Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 BCE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BCE (CA$46.5) is trading below our estimate of fair value (CA$117.64)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

BCE 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/Revenue3.3x
Enterprise Value/EBITDA9.3x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for BCE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average23.1x
T TELUS
37.9x19.6%CA$31.9b
QBR.A Quebecor
10.8x5.9%CA$7.0b
CGO Cogeco
8.7x37.6%CA$548.4m
RCI.B Rogers Communications
35x22.5%CA$29.9b
BCE BCE
20.4x10.5%CA$42.4b

Price-To-Earnings vs Peers: BCE is good value based on its Price-To-Earnings Ratio (20.4x) compared to the peer average (23.1x).


Price to Earnings Ratio vs Industry

How does BCE's PE Ratio compare vs other companies in the Global Telecom Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.7%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a12.7%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: BCE is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the Global Telecom industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is BCE'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.

BCE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.4x
Fair PE Ratio15.9x

Price-To-Earnings vs Fair Ratio: BCE is expensive based on its Price-To-Earnings Ratio (20.4x) compared to the estimated Fair Price-To-Earnings Ratio (15.9x).


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 BCE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$46.03
CA$54.79
+19.0%
5.1%CA$60.00CA$48.00n/a17
Mar ’25CA$50.15
CA$54.97
+9.6%
4.3%CA$60.00CA$51.00n/a18
Feb ’25CA$54.72
CA$57.84
+5.7%
4.7%CA$65.00CA$54.00n/a18
Jan ’25CA$52.17
CA$57.74
+10.7%
5.0%CA$65.00CA$54.00n/a17
Dec ’24CA$54.39
CA$57.43
+5.6%
5.1%CA$65.00CA$54.00n/a17
Nov ’24CA$52.52
CA$58.89
+12.1%
6.3%CA$67.00CA$54.00n/a16
Oct ’24CA$51.85
CA$62.00
+19.6%
6.0%CA$70.00CA$56.00n/a16
Sep ’24CA$56.40
CA$62.13
+10.2%
5.7%CA$70.00CA$56.00n/a16
Aug ’24CA$56.80
CA$64.47
+13.5%
4.0%CA$70.00CA$61.00n/a17
Jul ’24CA$60.40
CA$65.29
+8.1%
3.8%CA$70.00CA$62.00n/a17
Jun ’24CA$61.08
CA$65.47
+7.2%
3.6%CA$70.00CA$63.00n/a17
May ’24CA$65.45
CA$65.47
+0.03%
4.5%CA$73.00CA$61.00n/a17
Apr ’24CA$60.54
CA$65.53
+8.2%
4.5%CA$73.00CA$61.00n/a17
Mar ’24CA$60.21
CA$65.53
+8.8%
4.5%CA$73.00CA$61.00CA$50.1517
Feb ’24CA$63.24
CA$65.75
+4.0%
4.0%CA$73.00CA$63.00CA$54.7217
Jan ’24CA$59.49
CA$66.63
+12.0%
4.3%CA$73.00CA$62.00CA$52.1717
Dec ’23CA$63.86
CA$66.63
+4.3%
4.4%CA$73.00CA$62.00CA$54.3917
Nov ’23CA$61.57
CA$66.79
+8.5%
5.5%CA$75.00CA$62.00CA$52.5217
Oct ’23CA$57.92
CA$68.35
+18.0%
4.0%CA$75.00CA$62.00CA$51.8517
Sep ’23CA$63.45
CA$68.56
+8.1%
4.1%CA$75.00CA$62.00CA$56.4017
Aug ’23CA$64.70
CA$68.41
+5.7%
4.8%CA$75.00CA$62.00CA$56.8017
Jul ’23CA$63.27
CA$69.12
+9.2%
5.2%CA$75.00CA$61.00CA$60.4017
Jun ’23CA$68.60
CA$69.24
+0.9%
5.0%CA$75.00CA$61.00CA$61.0817
May ’23CA$68.30
CA$68.41
+0.2%
5.7%CA$75.00CA$60.00CA$65.4517
Apr ’23CA$70.23
CA$67.18
-4.3%
4.6%CA$71.00CA$60.00CA$60.5417
Mar ’23CA$67.05
CA$66.71
-0.5%
5.1%CA$71.00CA$60.00CA$60.2117

Analyst Forecast: Target price is less than 20% higher than the current share price.


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