BCE Inc.

TSX:BCE Stock Report

Market Cap: CA$34.8b

BCE Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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$37.74) is trading below our estimate of fair value (CA$102.04)

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?

Key metric: As BCE is barely profitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for BCE. This is calculated by dividing BCE's market cap by their current revenue.
What is BCE's PS Ratio?
PS Ratio1.4x
SalesCA$24.46b
Market CapCA$34.79b

Price to Sales Ratio vs Peers

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

The above table shows the PS ratio for BCE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average1x
T TELUS
1.6x3.9%CA$32.3b
QBR.A Quebecor
1.4x1.2%CA$7.5b
CCA Cogeco Communications
1x-0.2%CA$2.9b
CGO Cogeco
0.2x-0.4%CA$580.6m
BCE BCE
1.4x1.3%CA$34.8b

Price-To-Sales vs Peers: BCE is expensive based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1x).

Price to Sales Ratio vs Industry

How does BCE's PS Ratio compare vs other companies in the North American Telecom Industry?

7 CompaniesPrice / SalesEstimated GrowthMarket Cap
BCE 1.4xIndustry Avg. 1.3xNo. of Companies7PS00.61.21.82.43+
7 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: BCE is expensive based on its Price-To-Sales Ratio (1.4x) compared to the North American Telecom industry average (1.3x).

Price to Sales Ratio vs Fair Ratio

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

BCE PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.4x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: BCE is expensive based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).

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$37.74
CA$43.57
+15.4%
10.7%CA$56.00CA$37.50n/a15
Nov ’25CA$44.81
CA$50.22
+12.1%
8.4%CA$60.00CA$42.00n/a16
Oct ’25CA$47.00
CA$50.75
+8.0%
8.4%CA$60.00CA$42.00n/a16
Sep ’25CA$47.21
CA$50.00
+5.9%
8.1%CA$60.00CA$42.00n/a17
Aug ’25CA$47.07
CA$49.88
+6.0%
8.4%CA$60.00CA$42.00n/a17
Jul ’25CA$44.31
CA$50.44
+13.8%
8.6%CA$60.00CA$42.00n/a18
Jun ’25CA$46.62
CA$50.55
+8.4%
8.8%CA$60.00CA$42.00n/a18
May ’25CA$45.76
CA$51.40
+12.3%
7.7%CA$60.00CA$42.00n/a18
Apr ’25CA$45.89
CA$54.79
+19.4%
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$54.00CA$44.8116
Oct ’24CA$51.85
CA$62.00
+19.6%
6.0%CA$70.00CA$56.00CA$47.0016
Sep ’24CA$56.40
CA$62.13
+10.2%
5.7%CA$70.00CA$56.00CA$47.2116
Aug ’24CA$56.80
CA$64.47
+13.5%
4.0%CA$70.00CA$61.00CA$47.0717
Jul ’24CA$60.40
CA$65.29
+8.1%
3.8%CA$70.00CA$62.00CA$44.3117
Jun ’24CA$61.08
CA$65.47
+7.2%
3.6%CA$70.00CA$63.00CA$46.6217
May ’24CA$65.45
CA$65.47
+0.03%
4.5%CA$73.00CA$61.00CA$45.7617
Apr ’24CA$60.54
CA$65.53
+8.2%
4.5%CA$73.00CA$61.00CA$45.8917
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

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

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