TU PE Ratio & Valuation,Is TU Overvalued

TU Relative Valuation

TU'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, TU is overvalued; if below, it's undervalued.

Historical Valuation

Telus Corp (Pre-merger) (TU) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.46 is considered Undervalued compared with the five-year average of 23.19. The fair price of Telus Corp (Pre-merger) (TU) is between 15.16 to 18.14 according to relative valuation methord. Compared to the current price of 13.22 USD , Telus Corp (Pre-merger) is Undervalued By 12.8%.

Relative Value

Fair Zone

15.16-18.14

Current Price：13.22

12.8%

Undervalued

17.46

7.55

EV/EBITDA

Telus Corp (Pre-merger). (TU) has a current EV/EBITDA of 7.55. The 5-year average EV/EBITDA is 8.67. The thresholds are as follows: Strongly Undervalued below 7.61, Undervalued between 7.61 and 8.14, Fairly Valued between 9.20 and 8.14, Overvalued between 9.20 and 9.73, and Strongly Overvalued above 9.73. The current Forward EV/EBITDA of 7.55 falls within the Strongly Undervalued range.

17.71

EV/EBIT

Telus Corp (Pre-merger). (TU) has a current EV/EBIT of 17.71. The 5-year average EV/EBIT is 20.35. The thresholds are as follows: Strongly Undervalued below 16.65, Undervalued between 16.65 and 18.50, Fairly Valued between 22.20 and 18.50, Overvalued between 22.20 and 24.05, and Strongly Overvalued above 24.05. The current Forward EV/EBIT of 17.71 falls within the Undervalued range.

1.32

Telus Corp (Pre-merger). (TU) has a current PS of 1.32. The 5-year average PS is 1.85. The thresholds are as follows: Strongly Undervalued below 1.26, Undervalued between 1.26 and 1.56, Fairly Valued between 2.15 and 1.56, Overvalued between 2.15 and 2.44, and Strongly Overvalued above 2.44. The current Forward PS of 1.32 falls within the Undervalued range.

5.34

P/OCF

Telus Corp (Pre-merger). (TU) has a current P/OCF of 5.34. The 5-year average P/OCF is 7.31. The thresholds are as follows: Strongly Undervalued below 5.16, Undervalued between 5.16 and 6.24, Fairly Valued between 8.38 and 6.24, Overvalued between 8.38 and 9.46, and Strongly Overvalued above 9.46. The current Forward P/OCF of 5.34 falls within the Undervalued range.

11.89

P/FCF

Telus Corp (Pre-merger). (TU) has a current P/FCF of 11.89. The 5-year average P/FCF is 21.78. The thresholds are as follows: Strongly Undervalued below 3.82, Undervalued between 3.82 and 12.80, Fairly Valued between 30.77 and 12.80, Overvalued between 30.77 and 39.75, and Strongly Overvalued above 39.75. The current Forward P/FCF of 11.89 falls within the Undervalued range.

Telus Corp (Pre-merger) (TU) has a current Price-to-Book (P/B) ratio of 1.74. Compared to its 3-year average P/B ratio of 2.12 , the current P/B ratio is approximately -17.75% higher. Relative to its 5-year average P/B ratio of 2.32, the current P/B ratio is about -25.11% higher. Telus Corp (Pre-merger) (TU) has a Forward Free Cash Flow (FCF) yield of approximately 6.72%. Compared to its 3-year average FCF yield of 4.72%, the current FCF yield is approximately 42.42% lower. Relative to its 5-year average FCF yield of 4.26% , the current FCF yield is about 57.84% lower.

1.74

P/B

Median3y

2.12

Median5y

2.32

6.72

FCF Yield

Median3y

4.72

Median5y

4.26

Competitors Valuation Multiple

The average P/S ratio for TU's competitors is 7.85, providing a benchmark for relative valuation. Telus Corp (Pre-merger) Corp (TU) exhibits a P/S ratio of 1.32, which is -83.13% above the industry average. Given its robust revenue growth of 2.67%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of TU decreased by 8.90% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 7.82 to 23.19.

The secondary factor is the Revenue Growth, contributed 2.67%to the performance.

Overall, the performance of TU in the past 1 year is driven by P/E Change. Which is more unsustainable.

2.67%

4.90B → 5.03B

Revenue Growth

-207.98%

4.51 → -4.87

Margin Expansion

196.41%

7.82 → 23.19

P/E Change

-8.90%

14.49 → 13.20

Mkt Cap Growth

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Frequently Asked Questions

Is Telus Corp (Pre-merger) (TU) currently overvalued or undervalued?

What is Telus Corp (Pre-merger) (TU) fair value?

TU'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. The fair price of Telus Corp (Pre-merger) (TU) is between 15.16 to 18.14 according to relative valuation methord.

How does TU's valuation metrics compare to the industry average?

What is the current P/B ratio for Telus Corp (Pre-merger) (TU) as of Jan 07 2026?

As of Jan 07 2026, Telus Corp (Pre-merger) (TU) has a P/B ratio of 1.74. This indicates that the market values TU at 1.74 times its book value.

What is the current FCF Yield for Telus Corp (Pre-merger) (TU) as of Jan 07 2026?

As of Jan 07 2026, Telus Corp (Pre-merger) (TU) has a FCF Yield of 6.72%. This means that for every dollar of Telus Corp (Pre-merger)’s market capitalization, the company generates 6.72 cents in free cash flow.

What is the current Forward P/E ratio for Telus Corp (Pre-merger) (TU) as of Jan 07 2026?

As of Jan 07 2026, Telus Corp (Pre-merger) (TU) has a Forward P/E ratio of 17.46. This means the market is willing to pay $17.46 for every dollar of Telus Corp (Pre-merger)’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Telus Corp (Pre-merger) (TU) as of Jan 07 2026?

As of Jan 07 2026, Telus Corp (Pre-merger) (TU) has a Forward P/S ratio of 1.32. This means the market is valuing TU at $1.32 for every dollar of expected revenue over the next 12 months.

TU Valuation

Overview

Forecast

Valuation

Earnings