TELUS International (NYSE:TIXT): Assessing Valuation Following Recent 19% Three-Month Share Price Gain

TELUS International (Cda) (NYSE:TIXT) has seen shares remain flat over the past day, while the stock is up 19% in the past three months. Investors are keeping an eye on recent performance trends and what they could signal for the company’s outlook.

See our latest analysis for TELUS International (Cda).

The steady 19% share price return over the past quarter hints that investor sentiment may be turning a corner for TELUS International, after a challenging few years. However, the company’s three-year total shareholder return remains deeply negative, which suggests there is still ground to recover even with the momentum building in recent months.

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But with recent gains and a still-recovering long-term track record, the big question for investors is whether TELUS International is trading below its true value or if the market has already priced in a rebound. Could there still be a buying opportunity here?

Most Popular Narrative: 10% Undervalued

The widely followed narrative calculation pins TELUS International (Cda)'s fair value at $4.52 per share, just ahead of the last close at $4.48. The minimal gap points to a market that has already priced in most upside, yet the fair value rests slightly above current trading levels, keeping investors fixated on any potential mispricing.

The accelerating enterprise adoption of AI, automation, and advanced digital solutions is driving demand for TELUS International's AI & Data Solutions and Digital Solutions portfolio, supporting long-term revenue growth and mix shift toward higher-margin services as proof-of-concept work transitions to large-scale enterprise deployments in 2026, 2027.

Read the complete narrative.

Wondering what bold numbers and ambitious financial targets back this valuation? The core of this narrative hinges on future margins, a sector mix-shift, and upgrades to industry-standard multiples. The story goes well beyond surface-level price targets. Uncover the powerful forecasting embedded in these projections.

Result: Fair Value of $4.52 (UNDERVALUED)

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

However, persistent margin pressure and high debt levels remain significant hurdles that could challenge TELUS International's path to a sustained turnaround.

Find out about the key risks to this TELUS International (Cda) narrative.

Build Your Own TELUS International (Cda) Narrative

If you see the story differently or want to dig into the numbers yourself, you can build your own narrative analysis in just a few minutes. Do it your way.

A great starting point for your TELUS International (Cda) research is our analysis highlighting 2 key rewards and 1 important warning sign 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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