TELUS International (Cda) Inc.

NYSE:TIXT Stock Report

Market Cap: US$1.0b

TELUS International (Cda) Valuation

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

Below Fair Value: TIXT ($3.64) is trading below our estimate of fair value ($13.51)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for TIXT. This is calculated by dividing TIXT's market cap by their current earnings.
What is TIXT's PE Ratio?
PE Ratio32.3x
EarningsUS$31.00m
Market CapUS$1.00b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for TIXT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average16.9x
TASK TaskUs
27.4x23.5%US$1.5b
CSGS CSG Systems International
21.9x16.3%US$1.4b
CNDT Conduent
1.6x-104.3%US$705.1m
WNS WNS (Holdings)
16.7x16.7%US$2.0b
TIXT TELUS International (Cda)
32.3x-36.9%US$1.0b

Price-To-Earnings vs Peers: TIXT is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the peer average (16.4x).

Price to Earnings Ratio vs Industry

How does TIXT's PE Ratio compare vs other companies in the US Professional Services Industry?

9 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CNDT Conduent
1.6x-104.3%US$705.11m
ALJJ ALJ Regional Holdings
0.7xn/aUS$70.26m
VCIG VCI Global
1.9xn/aUS$17.66m
LICN Lichen China
0.9xn/aUS$6.61m
TIXT 32.3xIndustry Avg. 23.8xNo. of Companies10PE01224364860+
9 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: TIXT is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the US Professional Services industry average (23.8x).

Price to Earnings Ratio vs Fair Ratio

What is TIXT'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.

TIXT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio32.3x
Fair PE Ratio10.6x

Price-To-Earnings vs Fair Ratio: TIXT is expensive based on its Price-To-Earnings Ratio (32.3x) compared to the estimated Fair Price-To-Earnings Ratio (10.6x).

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 TIXT forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$3.64
US$4.48
+23.1%
19.7%US$6.50US$3.00n/a12
Dec ’25US$3.88
US$4.44
+14.5%
19.3%US$6.50US$3.00n/a13
Nov ’25US$3.82
US$4.56
+19.3%
23.1%US$7.50US$3.00n/a13
Oct ’25US$3.74
US$4.60
+22.9%
23.0%US$7.50US$3.00n/a13
Sep ’25US$3.66
US$4.67
+27.7%
22.4%US$7.50US$3.00n/a13
Aug ’25US$6.48
US$9.40
+45.1%
33.6%US$18.50US$6.60n/a14
Jul ’25US$5.89
US$9.40
+59.6%
33.6%US$18.50US$6.60n/a14
Jun ’25US$5.73
US$9.40
+64.0%
33.6%US$18.50US$6.60n/a14
May ’25US$8.27
US$11.73
+41.9%
30.5%US$20.00US$8.00n/a15
Apr ’25US$8.43
US$12.30
+45.9%
27.6%US$20.00US$8.00n/a15
Mar ’25US$10.12
US$12.64
+24.9%
28.8%US$21.50US$8.00n/a14
Feb ’25US$8.98
US$11.61
+29.3%
35.6%US$21.50US$7.00n/a14
Jan ’25US$8.58
US$11.43
+33.2%
32.6%US$19.00US$7.00n/a14
Dec ’24US$7.65
US$11.29
+47.5%
34.2%US$19.00US$7.00US$3.8814
Nov ’24US$6.50
US$13.29
+104.4%
27.8%US$20.00US$8.00US$3.8214
Oct ’24US$7.62
US$14.71
+93.1%
20.5%US$20.00US$11.00US$3.7414
Sep ’24US$8.87
US$14.71
+65.9%
20.5%US$20.00US$11.00US$3.6614
Aug ’24US$9.09
US$16.69
+83.6%
18.0%US$21.00US$11.00US$6.4813
Jul ’24US$15.18
US$25.29
+66.6%
19.0%US$35.00US$17.00US$5.8914
Jun ’24US$15.35
US$25.60
+66.8%
16.4%US$35.00US$20.00US$5.7315
May ’24US$19.77
US$27.28
+38.0%
11.2%US$35.00US$22.00US$8.2716
Apr ’24US$20.23
US$27.20
+34.5%
11.6%US$35.00US$22.00US$8.4315
Mar ’24US$21.49
US$27.20
+26.6%
11.6%US$35.00US$22.00US$10.1215
Feb ’24US$24.00
US$28.13
+17.2%
15.3%US$38.00US$23.00US$8.9815
Jan ’24US$19.79
US$29.73
+50.2%
21.3%US$50.00US$24.00US$8.5815
Dec ’23US$21.19
US$30.57
+44.3%
20.7%US$50.00US$26.00US$7.6515

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 02:17
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

TELUS International (Cda) Inc. is covered by 21 analysts. 13 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Ramsey El-AssalBarclays
Keith BachmanBMO Capital Markets Equity Research
Cassie ChanBofA Global Research