TELUS Corporation (TU) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+154.3%

$22.95

vs $9.03 price

Levered DCF

$0.73

After debt service

Piotroski score

4 / 9

Average

Altman Z-score

0.67

Distress zone

Rating

C-

Overall 1 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.75×	29.11×	40.61×	22.54×	24.22×	26.59×	17.32×	16.87×
P/B	1.75×	1.86×	2.12×	2.2×	2.65×	2.67×	2.87×	2.63×
P/S	1.36×	1.44×	1.71×	2×	2.38×	2.1×	2.07×	1.92×
EV / EBITDA	8.35×	8.18×	8.58×	9.28×	9.99×	9.17×	8.55×	7.91×
Gross margin	62.1%	35.1%	35.1%	35.6%	35.8%	36.6%	38.5%	36.4%
Operating margin	11.6%	13.9%	11.8%	16.1%	18.3%	16.2%	20.4%	20.1%
Net margin	5.5%	4.9%	4.2%	8.8%	9.8%	7.9%	12.0%	11.4%
Current ratio	0.86×	0.68×	0.67×	0.74×	0.61×	0.79×	0.78×	0.79×
Debt / equity	1.99×	1.91×	1.7×	1.52×	1.39×	1.69×	1.76×	1.38×
Interest coverage	1.95×	1.98×	1.83×	3.41×	3.82×	3.33×	4.2×	4.42×
Dividend yield	5.9%	5.4%	3.8%	3.3%	2.6%	2.9%	3.8%	4.2%
Payout ratio	146.3%	157.3%	156.4%	73.6%	63.1%	77.1%	65.8%	71.3%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	7.1%	6.4%	5.2%	9.7%	10.9%	10.0%	16.6%	15.6%
Return on invested capital	2.8%	4.1%	3.7%	4.5%	5.4%	4.7%	7.0%	7.3%
Return on assets	1.9%	1.7%	1.5%	3.0%	3.4%	2.8%	4.6%	4.8%
Free cash flow yield	8.5%	5.0%	3.8%	3.2%	-2.3%	5.4%	0.1%	4.4%
Earnings yield	4.0%	3.4%	2.5%	4.4%	4.1%	3.7%	5.8%	5.9%
Enterprise value	$56.5B	$58B	$60.8B	$60.7B	$60.3B	$51.7B	$48.3B	$40.8B
Net debt / EBITDA	4.26×	4.08×	3.75×	3.7×	3.35×	3.46×	3.19×	2.68×
Cash conversion cycle (days)	56	64	63	51	46	53	52	51