TIXT Relative Valuation
TIXT's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, TIXT is overvalued; if below, it's undervalued.
Historical Valuation
TELUS International (CDA) Inc (TIXT) is now in the Undervalued zone, suggesting that its current forward PE ratio of 10.51 is considered Undervalued compared with the five-year average of 18.59. The fair price of TELUS International (CDA) Inc (TIXT) is between 5.54 to 10.25 according to relative valuation methord. Compared to the current price of 3.74 USD , TELUS International (CDA) Inc is Undervalued By 32.51%.
Relative Value
Fair Zone
5.54-10.25
Current Price：3.74
32.51%
Undervalued
10.51
PE
1Y
3Y
5Y
Trailing
Forward
5.91
EV/EBITDA
TELUS International (CDA) Inc. (TIXT) has a current EV/EBITDA of 5.91. The 5-year average EV/EBITDA is 10.23. The thresholds are as follows: Strongly Undervalued below 1.69, Undervalued between 1.69 and 5.96, Fairly Valued between 14.50 and 5.96, Overvalued between 14.50 and 18.77, and Strongly Overvalued above 18.77. The current Forward EV/EBITDA of 5.91 falls within the Undervalued range.
99.75
EV/EBIT
TELUS International (CDA) Inc. (TIXT) has a current EV/EBIT of 99.75. The 5-year average EV/EBIT is 35.34. The thresholds are as follows: Strongly Undervalued below 1.22, Undervalued between 1.22 and 18.28, Fairly Valued between 52.40 and 18.28, Overvalued between 52.40 and 69.46, and Strongly Overvalued above 69.46. The current Forward EV/EBIT of 99.75 falls within the Strongly Overvalued range.
0.37
PS
TELUS International (CDA) Inc. (TIXT) has a current PS of 0.37. The 5-year average PS is 1.79. The thresholds are as follows: Strongly Undervalued below -0.71, Undervalued between -0.71 and 0.54, Fairly Valued between 3.05 and 0.54, Overvalued between 3.05 and 4.30, and Strongly Overvalued above 4.30. The current Forward PS of 0.37 falls within the Undervalued range.
2.28
P/OCF
TELUS International (CDA) Inc. (TIXT) has a current P/OCF of 2.28. The 5-year average P/OCF is 11.04. The thresholds are as follows: Strongly Undervalued below -3.85, Undervalued between -3.85 and 3.60, Fairly Valued between 18.48 and 3.60, Overvalued between 18.48 and 25.93, and Strongly Overvalued above 25.93. The current Forward P/OCF of 2.28 falls within the Undervalued range.
3.62
P/FCF
TELUS International (CDA) Inc. (TIXT) has a current P/FCF of 3.62. The 5-year average P/FCF is 14.63. The thresholds are as follows: Strongly Undervalued below -5.39, Undervalued between -5.39 and 4.62, Fairly Valued between 24.64 and 4.62, Overvalued between 24.64 and 34.64, and Strongly Overvalued above 34.64. The current Forward P/FCF of 3.62 falls within the Undervalued range.
TELUS International (CDA) Inc (TIXT) has a current Price-to-Book (P/B) ratio of 0.60. Compared to its 3-year average P/B ratio of 1.55 , the current P/B ratio is approximately -60.96% higher. Relative to its 5-year average P/B ratio of 2.69, the current P/B ratio is about -77.51% higher. TELUS International (CDA) Inc (TIXT) has a Forward Free Cash Flow (FCF) yield of approximately 28.11%. Compared to its 3-year average FCF yield of 23.12%, the current FCF yield is approximately 21.61% lower. Relative to its 5-year average FCF yield of 16.36% , the current FCF yield is about 71.82% lower.
0.60
P/B
Median3y
1.55
Median5y
2.69
28.11
FCF Yield
Median3y
23.12
Median5y
16.36
Competitors Valuation Multiple
The average P/S ratio for TIXT's competitors is 1.10, providing a benchmark for relative valuation. TELUS International (CDA) Inc Corp (TIXT) exhibits a P/S ratio of 0.37, which is -66.37% above the industry average. Given its robust revenue growth of 7.21%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of TIXT increased by 2.19% over the past 1 year. The primary factor behind the change was an decrease in Margin Expansion from -0.46 to -38.91.
The secondary factor is the Revenue Growth, contributed 7.21%to the performance.
Overall, the performance of TIXT in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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FAQ
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