TU Valuation

Telus Corp

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15.810

-0.26(-1.618%)1D

Overview
Forecast
Valuation
Earnings

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 (TU) is now in the Fair zone, suggesting that its current forward PE ratio of 20.60 is considered Fairly compared with the five-year average of 23.35. The fair price of Telus Corp (TU) is between 15.44 to 18.20 according to relative valuation methord.

Relative Value

Fair Zone

15.44-18.20

Current Price：15.81

Fair

20.89

Trailing

Forward

8.41

EV/EBITDA

Telus Corp. (TU) has a current EV/EBITDA of 8.41. The 5-year average EV/EBITDA is 8.70. The thresholds are as follows: Strongly Undervalued below 7.70, Undervalued between 7.70 and 8.20, Fairly Valued between 9.20 and 8.20, Overvalued between 9.20 and 9.70, and Strongly Overvalued above 9.70. The current Forward EV/EBITDA of 8.41 falls within the Historic Trend Line -Fairly Valued range.

20.72

EV/EBIT

Telus Corp. (TU) has a current EV/EBIT of 20.72. The 5-year average EV/EBIT is 20.39. The thresholds are as follows: Strongly Undervalued below 16.77, Undervalued between 16.77 and 18.58, Fairly Valued between 22.20 and 18.58, Overvalued between 22.20 and 24.02, and Strongly Overvalued above 24.02. The current Forward EV/EBIT of 20.72 falls within the Historic Trend Line -Fairly Valued range.

1.61

Telus Corp. (TU) has a current PS of 1.61. The 5-year average PS is 1.88. The thresholds are as follows: Strongly Undervalued below 1.33, Undervalued between 1.33 and 1.60, Fairly Valued between 2.16 and 1.60, Overvalued between 2.16 and 2.43, and Strongly Overvalued above 2.43. The current Forward PS of 1.61 falls within the Historic Trend Line -Fairly Valued range.

6.52

P/OCF

Telus Corp. (TU) has a current P/OCF of 6.52. The 5-year average P/OCF is 7.37. The thresholds are as follows: Strongly Undervalued below 5.34, Undervalued between 5.34 and 6.35, Fairly Valued between 8.38 and 6.35, Overvalued between 8.38 and 9.40, and Strongly Overvalued above 9.40. The current Forward P/OCF of 6.52 falls within the Historic Trend Line -Fairly Valued range.

14.73

P/FCF

Telus Corp. (TU) has a current P/FCF of 14.73. The 5-year average P/FCF is 22.37. The thresholds are as follows: Strongly Undervalued below 4.87, Undervalued between 4.87 and 13.62, Fairly Valued between 31.12 and 13.62, Overvalued between 31.12 and 39.87, and Strongly Overvalued above 39.87. The current Forward P/FCF of 14.73 falls within the Historic Trend Line -Fairly Valued range.

Telus Corp (TU) has a current Price-to-Book (P/B) ratio of 2.18. Compared to its 3-year average P/B ratio of 2.16 , the current P/B ratio is approximately 0.95% higher. Relative to its 5-year average P/B ratio of 2.36, the current P/B ratio is about -7.64% higher. Telus Corp (TU) has a Forward Free Cash Flow (FCF) yield of approximately 6.56%. Compared to its 3-year average FCF yield of 4.39%, the current FCF yield is approximately 49.36% lower. Relative to its 5-year average FCF yield of 4.16% , the current FCF yield is about 57.62% lower.

2.22

P/B

Median3y

2.16

Median5y

2.36

6.56

FCF Yield

Median3y

4.39

Median5y

4.16

Competitors Valuation Multiple

The average P/S ratio for TU's competitors is 1.37, providing a benchmark for relative valuation. Telus Corp Corp (TU) exhibits a P/S ratio of 1.61, which is 17.52% above the industry average. Given its robust revenue growth of 2.67%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Rogers Communications Inc

Liberty Broadband Corp

Millicom International Cellular SA

1.42

-5.90%

8.03B

Performance Decomposition

Market capitalization of TU decreased by 2.59% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 11.23 to 33.99.

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

202.72%

11.23 → 33.99

P/E Change

-2.59%