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Fundamentals snapshot

TELUS Corporation

TU · NYQ · Communication Services · Telecom Services

Current price

$8.66

52-week range

$7.64 - $14.83

Market cap

$13.77B

One-glance verdict

Undervalued

$12.26 our estimate vs market $8.66

Wall Street consensus: $10.00 (-18.4% lower than our fair-value estimate)

Balance sheet

Stretched

1.78x Concerning

Net debt $21.18B. Interest coverage shows how many times profit covers the interest bill.

What this company does

TELUS Corporation

TELUS Corporation is a big Canadian company that provides internet, phone, and TV services to homes and businesses, much like your cable company. A lot of their money comes from these regular monthly phone and internet bills, which is called recurring revenue (income that a company can expect to receive consistently over time), and they are also growing their technology solutions for healthcare and agriculture, which helps them earn money from different areas. This diversification (spreading earnings across various businesses) is important because it means if one part of their business slows down, the others can help keep them strong.

Price history

How the share price has moved

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Is it cheap or expensive?

Fair value $12.26 vs current price $8.66

Wall Street consensus is the average analyst price target: $10.00 (-18.4% lower than our fair-value estimate).

Our most-likely fair value is $12.26 a share — about 41.6% above today's price of $8.66, so the stock currently looks cheap (undervalued).

undervalued

We estimate the cash this business should generate over the next 10 years and beyond, then convert it to today's money for a fair value per share, in its trading currency. Cautious, middle and optimistic growth cases give a range. Not for banks/insurers.

Base

Growth 3.0% · Discount 7.2% · Terminal 3.0%

$12.26

Bear

Growth 3.0% · Discount 7.2% · Terminal 3.0%

$12.26

Bull

Growth 6.0% · Discount 7.2% · Terminal 3.0%

$17.29

Is it drowning in debt?

Stretched

Net debt $21.2B. Interest coverage 1.8x.

Net debt $21.18B
Interest coverage 1.78x

TELUS Corporation is healthier than 0 of 1 peers on balance-sheet leverage.

Stretched
Worse cushion Baseline Better cushion
TU BASELINE TELUS Corporation

Total debt $22.10B Interest coverage 1.78x This is the baseline the peer rows are being compared against.

1.78x

What you should know

The case for and against TU

3 Rewards 2 Risks

Rewards

  • Revenue grew 1.0% last year.
  • Free cash flow was positive in 4/10 years.
  • Dividend yield is 6.0% with 27-year payout history.

Risks

  • Net debt grew 19.3% over 3 years.
  • Return on equity was -12.9% last year — the company lost money on shareholders' equity.

The numbers

All the key metrics, grouped by purpose

Tap any ? icon to learn what it means.

Valuation

How expensive the stock looks

P/E (TTM)
—
Forward P/E
16.07x
P/B
1.44x
P/S
0.68x
EV/EBITDA
9.77x
PEG ratio
13.28x

Profitability

How much profit each dollar creates

Gross margin
35.4%
Operating margin
15.8%
Net margin
-10.3%
ROE
-12.9%
ROA
3.4%

Health

Liquidity and balance-sheet strength

Debt / equity
2.21x
Current ratio
0.63x
Quick ratio
0.50x
Total debt
$22.10B
Total cash
$927.41M

Growth

How the business has been compounding

Revenue TTM
$14.15B
Revenue 5Y CAGR
3.6%
EPS TTM
-0.96
EPS 5Y CAGR
-14.5%

Cash flow

How much cash the business throws off

Operating CF TTM
$3.42B
Free CF TTM
$1.65B
FCF margin
11.7%

Dividend

Shareholder payout

Yield
6.0%
Payout ratio
282.9%
Last ex-div date
2026-12-11