Fair value published on 19 Oct 2026, 19:04 CEST; previously $8.70 since 15 Oct 2026, 00:00 CEST.
ACCE price target published on 26 Sept 2026, 00:00 CEST.
Rating published on 19 Oct 2026, 19:04 CEST.
Price used: $8.83 at the close on 23 Oct 2026, 22:00 CEST.
Models: Discounted cash flow, P/E comparison, EV/EBITDA comparison, Graham number, and Dividend discount.
Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
5.3% above
-5.0% to fair value
ACCE score
35
out of 100
Analysts
17% buy
18 covering
P/E
0.0x
forward 15.7x
1-year return
-41.5%
Dividend yield
19.95%
Telus Corporation Ordinary Shares in four questions
Plain answers, details below
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Overview
ACCE thesis
Telus runs a Canadian wireless and wireline network, along with TELUS Health (electronic medical records and benefits administration) and TELUS Digital (customer experience outsourcing), giving it more than a single telecom franchise. The structural case rests on a scarce national wireless footprint in a three-player market, which supports pricing discipline and a 15.1% operating margin despite revenue shrinking 2.2%. Revenue contraction is the central issue, and the thesis depends on whether wireless pricing and TELUS Digital's softer demand stabilize enough to restore top-line growth. At a forward P/E of 14.9 the stock screens cheap against its own earnings power, but negative ROE of -6.4% and a score of 32/100 mean the balance sheet and recent profitability need checking before anything else. The name merits a deeper look to test whether the revenue decline is cyclical or structural, not on valuation alone.
⚠ Investor warnings · 4 flagsAI-assisted·How I use AI
high
Earnings collapse
YoY earnings down 58.5% while revenue fell 2.2%. Net margin turned negative at -4.5%, signalling profitability deterioration despite stable gross margins.
high
Negative ROE and net margin
ROE of -6.4% and net margin of -4.5% indicate the company is destroying shareholder value. Unsustainable at current capital structure.
high
High leverage with negative earnings
Debt/Equity of 2.24 combined with negative ROE and falling earnings raises refinancing and covenant risk. FCF of $2.4B provides near-term cushion but trajectory is concerning.
moderate
ACCE score deterioration
Score fell 4 points to 34/100 in 90 days. Quality subscore of 38 and Momentum of 17 are particularly weak, reflecting operational headwinds.
AI research notes
AI-assisted·How I use AIWritten Oct 11, 2026 · figures from 2026-06-30 · prices to Oct 23, 2026
Why it could do well
Free cash flow yield of 13.9% suggests the stock is deeply undervalued relative to cash generation.
Analyst mean price target of $10.33 implies 33.9% upside from current levels.
5-year average revenue growth of 3.7% per year shows the business has expanded over time.
Why it could disappoint
Negative net margin of -4.5% and ROE of -6.4% mean the company is destroying shareholder value.
Debt to equity of 2.24 leaves little room to refinance in a high-rate environment.
Revenue fell 2.2% year over year while share count grew 2.8%, compressing earnings per share.
Each chip shows the exact figure and where it comes from. A claim without a source is not published.
Next results
Nov 6, 2026
We update the fair value about 2 days after the results, once the new figures are filed.Add to calendarGoogle
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Valuation
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Where TU's valuation models land
Price
$8.83
Model fair value
$8.39
Model range
$4.64 to $13.43
Fair value $8.39
Price $8.83
The price sits inside the model range.
Model
Fair value
Upside
Discounted cash flow
Dividend discount
EV/EBITDA comparison
Graham number
P/E comparison
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Quality
INVESTOR
Quality and conviction INVESTOR FEATURE
The full quality picture: a reason under every score, how the scores moved, and the conviction breakdown.
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+Conviction breakdown and growth / value / quality / momentum scores