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Recent performance context for TELUS stock
TELUS (TSX:T) has moved quietly on the market radar, with the stock edging up about 0.5% over the past day while declining over the past week, month and past 3 months.
This mixed share performance sits against annual revenue of CA$20.3b and net income of CA$928m, figures that give you a sense of the company's current scale in Canadian and international telecommunications.
See our latest analysis for TELUS.
At a share price of CA$17.18, TELUS has seen short term weakness with the 90 day share price return down 7.83%, while the 1 year total shareholder return is down 16.58%. This points to fading momentum as investors reassess telecom growth prospects and income reliability.
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With TELUS stock down over 16% on a 1 year basis and trading at a sizeable intrinsic discount, the key question is whether the recent weakness is an entry point or if markets already reflect future growth.
Most Popular Narrative: 39.4% Undervalued
With TELUS closing at CA$17.18 against a narrative fair value of CA$28.36, the current price sits well below what this widely followed model implies.
Rapid scaling of AI enabled offerings, including sovereign AI factories and data centric services, is expected to more than double AI related external revenue to approximately $2 billion by 2028, supporting faster consolidated revenue growth and structurally higher EBITDA margins.
Want to see what sits behind that confidence in AI revenue, margin uplift and cash generation? The narrative links ambitious growth, a richer mix of services and a higher future earnings multiple.
Result: Fair Value of CA$28.36 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this optimistic setup still hinges on wireless pricing holding up, as well as TELUS delivering complex health and digital integrations without unexpected cost or churn setbacks.
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Another view on TELUS valuation
While the narrative fair value pegs TELUS at CA$28.36, the market is currently paying a P/E of 29.1x, compared with a fair ratio of 10.5x, a Canadian Telecom industry average of 8.6x and a peer average of 9.5x. That is a wide premium, so is the market overpaying for the story?
To see how this earnings multiple stacks up against the underlying assumptions, take a closer look at the valuation breakdown, including the fair ratio and peer comparisons, with See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
If this mix of caution and optimism feels familiar, act while the information is fresh and shape your own view with 2 key rewards and 3 important warning signs
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include T.TO .
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