TELUS Valuation

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

Below Fair Value: T (CA$21.59) is trading below our estimate of fair value (CA$65.51)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

T 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/Revenue3x
Enterprise Value/EBITDA10.6x
PEG Ratio1.9x

Price to Earnings Ratio vs Peers

How does T's PE Ratio compare to its peers?

The above table shows the PE ratio for T vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.7x
BCE BCE
20.4x10.5%CA$42.4b
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
T TELUS
37.9x19.6%CA$31.9b

Price-To-Earnings vs Peers: T is expensive based on its Price-To-Earnings Ratio (37.9x) compared to the peer average (18.7x).


Price to Earnings Ratio vs Industry

How does T'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: T is expensive based on its Price-To-Earnings Ratio (37.9x) compared to the Global Telecom industry average (16.4x).


Price to Earnings Ratio vs Fair Ratio

What is T'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.

T PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio37.9x
Fair PE Ratio17.8x

Price-To-Earnings vs Fair Ratio: T is expensive based on its Price-To-Earnings Ratio (37.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.8x).


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 T forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$21.59
CA$26.94
+24.8%
8.2%CA$33.00CA$24.00n/a17
Mar ’25CA$23.83
CA$27.23
+14.3%
8.0%CA$33.00CA$24.00n/a17
Feb ’25CA$24.25
CA$27.16
+12.0%
7.6%CA$33.00CA$24.00n/a18
Jan ’25CA$23.58
CA$27.38
+16.1%
7.4%CA$33.00CA$24.00n/a18
Dec ’24CA$24.98
CA$27.11
+8.5%
7.8%CA$33.00CA$24.00n/a18
Nov ’24CA$22.78
CA$27.35
+20.1%
7.8%CA$33.00CA$24.00n/a17
Oct ’24CA$22.18
CA$28.53
+28.6%
7.4%CA$33.00CA$26.00n/a17
Sep ’24CA$23.81
CA$28.59
+20.1%
7.2%CA$33.00CA$26.00n/a17
Aug ’24CA$23.55
CA$29.47
+25.1%
6.4%CA$33.00CA$27.00n/a17
Jul ’24CA$25.78
CA$31.21
+21.0%
6.2%CA$35.00CA$28.00n/a17
Jun ’24CA$25.65
CA$31.26
+21.9%
6.3%CA$35.00CA$28.00n/a17
May ’24CA$28.60
CA$31.56
+10.3%
5.2%CA$35.00CA$28.00n/a17
Apr ’24CA$26.83
CA$31.63
+17.9%
4.3%CA$33.00CA$28.00n/a16
Mar ’24CA$27.02
CA$31.59
+16.9%
4.2%CA$33.00CA$28.00CA$23.8317
Feb ’24CA$28.94
CA$32.53
+12.4%
5.9%CA$36.00CA$28.00CA$24.2517
Jan ’24CA$26.13
CA$33.06
+26.5%
4.7%CA$36.00CA$30.00CA$23.5817
Dec ’23CA$28.61
CA$33.12
+15.8%
4.8%CA$36.00CA$30.00CA$24.9817
Nov ’23CA$28.36
CA$33.15
+16.9%
5.8%CA$37.00CA$30.00CA$22.7817
Oct ’23CA$27.43
CA$34.09
+24.3%
4.2%CA$37.00CA$32.00CA$22.1817
Sep ’23CA$29.56
CA$34.25
+15.9%
4.4%CA$37.00CA$32.00CA$23.8116
Aug ’23CA$29.48
CA$34.15
+15.8%
4.4%CA$37.00CA$32.00CA$23.5517
Jul ’23CA$28.67
CA$34.24
+19.4%
6.8%CA$38.00CA$28.00CA$25.7817
Jun ’23CA$31.41
CA$34.35
+9.4%
6.9%CA$38.00CA$28.00CA$25.6517
May ’23CA$32.14
CA$34.15
+6.2%
7.0%CA$38.00CA$28.00CA$28.6017
Apr ’23CA$33.31
CA$33.88
+1.7%
6.5%CA$38.00CA$28.00CA$26.8317
Mar ’23CA$32.02
CA$33.65
+5.1%
7.6%CA$38.00CA$28.00CA$27.0217

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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