Cogeco Communications Inc.

TSX:CCA Stock Report

Market Cap: CA$2.9b

Cogeco Communications Valuation

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

Valuation Score

5/6

Valuation Score 5/6

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

Below Fair Value: CCA (CA$69.36) is trading below our estimate of fair value (CA$446.54)

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

Key Valuation Metric

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

Key metric: As CCA is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CCA. This is calculated by dividing CCA's market cap by their current earnings.
What is CCA's PE Ratio?
PE Ratio8.7x
EarningsCA$335.53m
Market CapCA$2.91b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CCA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average14.7x
QBR.A Quebecor
10.5x4.5%CA$7.5b
CGO Cogeco
5.9x14.4%CA$570.1m
T TELUS
34.6x22.5%CA$31.9b
TSAT Telesat
7.9x-66.8%CA$857.4m
CCA Cogeco Communications
8.7x-0.04%CA$2.9b

Price-To-Earnings vs Peers: CCA is good value based on its Price-To-Earnings Ratio (8.7x) compared to the peer average (14.7x).

Price to Earnings Ratio vs Industry

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

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CCA 8.7xIndustry Avg. 15.9xNo. of Companies29PE01224364860+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CCA is good value based on its Price-To-Earnings Ratio (8.7x) compared to the Global Telecom industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is CCA'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.

CCA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio8.7x
Fair PE Ratio12.3x

Price-To-Earnings vs Fair Ratio: CCA is good value based on its Price-To-Earnings Ratio (8.7x) compared to the estimated Fair Price-To-Earnings Ratio (12.3x).

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 CCA forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$69.36
CA$79.25
+14.3%
5.5%CA$89.00CA$73.00n/a10
Nov ’25CA$69.25
CA$77.05
+11.3%
6.9%CA$85.00CA$65.00n/a10
Oct ’25CA$71.69
CA$72.15
+0.6%
10.8%CA$85.00CA$60.00n/a10
Sep ’25CA$64.57
CA$70.05
+8.5%
11.1%CA$85.00CA$60.00n/a10
Aug ’25CA$64.12
CA$69.05
+7.7%
10.2%CA$85.00CA$60.00n/a10
Jul ’25CA$51.59
CA$67.85
+31.5%
10.3%CA$80.00CA$60.00n/a10
Jun ’25CA$52.31
CA$68.85
+31.6%
13.2%CA$90.00CA$60.00n/a10
May ’25CA$54.50
CA$68.85
+26.3%
13.2%CA$90.00CA$60.00n/a10
Apr ’25CA$59.51
CA$71.40
+20.0%
13.6%CA$93.00CA$63.00n/a10
Mar ’25CA$61.66
CA$71.40
+15.8%
13.6%CA$93.00CA$63.00n/a10
Feb ’25CA$62.33
CA$71.40
+14.6%
13.6%CA$93.00CA$63.00n/a10
Jan ’25CA$59.35
CA$71.30
+20.1%
13.7%CA$93.00CA$63.00n/a10
Dec ’24CA$53.70
CA$68.18
+27.0%
14.3%CA$87.00CA$50.00n/a10
Nov ’24CA$55.16
CA$73.85
+33.9%
13.3%CA$96.00CA$60.00CA$69.2510
Oct ’24CA$62.87
CA$78.00
+24.1%
13.3%CA$96.00CA$60.00CA$71.6910
Sep ’24CA$65.63
CA$78.90
+20.2%
15.4%CA$105.00CA$60.00CA$64.5710
Aug ’24CA$66.23
CA$78.90
+19.1%
15.4%CA$105.00CA$60.00CA$64.1210
Jul ’24CA$70.69
CA$79.10
+11.9%
16.1%CA$105.00CA$60.00CA$51.5910
Jun ’24CA$64.26
CA$80.16
+24.7%
15.7%CA$105.00CA$60.00CA$52.3111
May ’24CA$65.82
CA$80.16
+21.8%
15.7%CA$105.00CA$60.00CA$54.5011
Apr ’24CA$65.83
CA$87.97
+33.6%
12.0%CA$110.00CA$74.00CA$59.5110
Mar ’24CA$68.59
CA$86.34
+25.9%
13.1%CA$110.00CA$70.00CA$61.6611
Feb ’24CA$70.32
CA$86.34
+22.8%
13.1%CA$110.00CA$70.00CA$62.3311
Jan ’24CA$76.79
CA$91.70
+19.4%
14.4%CA$115.00CA$72.00CA$59.3511
Dec ’23CA$77.89
CA$91.70
+17.7%
14.4%CA$115.00CA$72.00CA$53.7011
Nov ’23CA$71.65
CA$92.05
+28.5%
15.1%CA$115.00CA$72.00CA$55.1610

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

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