TU
TELUS Corporation (TU)
Last Price$15.4(4.4%)
Market Cap$23.4B
DCF value
$21.2
Undervalued (DCF value)
38.3%
Discount Rate
4.4%
Long-Term Growth Rate
2.5%
Stock quality
6/10
Good

TU DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
15,341.0
5.2%
16,838.0
9.8%
18,292.0
8.6%
20,005.0
9.4%
20,139.0
0.7%
20,941.0
4.0%
21,598.6
3.1%
22,206.5
2.8%
22,822.8
2.8%
23,447.2
2.7%
24,079.5
2.7%
24,719.3
2.7%
25,366.5
2.6%
26,020.6
2.6%
26,681.3
2.5%
27,348.3
2.5%
2,482.0
16.2%
3,074.0
18.3%
2,954.0
16.1%
2,362.0
11.8%
2,804.0
13.9%
2,996.7
14.3%
3,090.9
14.3%
3,177.8
14.3%
3,266.0
14.3%
3,355.4
14.3%
3,445.9
14.3%
3,537.4
14.3%
3,630.0
14.3%
3,723.6
14.3%
3,818.2
14.3%
3,913.7
14.3%
NOPAT
% effective tax rate
1,827.8
11.9%
2,291.3
13.6%
2,185.6
11.9%
1,880.5
9.4%
2,141.8
10.6%
2,289.0
10.9%
2,360.9
10.9%
2,427.4
10.9%
2,494.7
10.9%
2,563.0
10.9%
2,632.1
10.9%
2,702.0
10.9%
2,772.8
10.9%
2,844.3
10.9%
2,916.5
10.9%
2,989.4
10.9%
% of revenue
3,163.0
20.6%
3,227.0
19.2%
3,463.0
18.9%
4,069.0
20.3%
4,036.0
20.0%
4,140.2
19.8%
4,270.2
19.8%
4,390.4
19.8%
4,512.2
19.8%
4,635.7
19.8%
4,760.7
19.8%
4,887.2
19.8%
5,015.2
19.8%
5,144.5
19.8%
5,275.1
19.8%
5,407.0
19.8%
% of revenue
(2,822.0)
(18.4%)
(5,316.0)
(31.6%)
(3,647.0)
(19.9%)
(3,211.0)
(16.1%)
(3,387.0)
(16.8%)
(3,686.1)
(17.6%)
(3,801.8)
(17.6%)
(3,908.8)
(17.6%)
(4,017.3)
(17.6%)
(4,127.2)
(17.6%)
(4,238.5)
(17.6%)
(4,351.2)
(17.6%)
(4,465.1)
(17.6%)
(4,580.2)
(17.6%)
(4,696.5)
(17.6%)
(4,813.9)
(17.6%)
270.0
1.8%
(82.0)
(0.5%)
(193.0)
(1.1%)
(326.0)
(1.6%)
21.0
0.1%
(180.1)
(0.9%)
(185.8)
(0.9%)
(191.0)
(0.9%)
(196.3)
(0.9%)
(201.7)
(0.9%)
(207.1)
(0.9%)
(212.6)
(0.9%)
(218.2)
(0.9%)
(223.8)
(0.9%)
(229.5)
(0.9%)
(235.2)
(0.9%)
Free Cash Flow to Firm (FCFF)
% of revenue
2,438.8
15.9%
120.3
0.7%
1,808.6
9.9%
2,412.5
12.1%
2,811.8
14.0%
2,563.0
12.2%
2,643.5
12.2%
2,717.9
12.2%
2,793.4
12.2%
2,869.8
12.2%
2,947.2
12.2%
3,025.5
12.2%
3,104.7
12.2%
3,184.7
12.2%
3,265.6
12.2%
3,347.3
12.2%
% of FCFF used in calculation
80.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.98
0.94
0.90
0.86
0.82
0.79
0.75
0.72
0.69
0.66
Discounted FCFF (DFCFF)
2,027.2
2,477.4
2,439.2
2,400.8
2,362.0
2,322.9
2,283.7
2,244.2
2,204.6
2,164.8

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TU DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
22.9B
30.0%
Terminal Value (TV)
80.7B
Discounted TV
% share of EV
53.5B
70.0%
Total Debt
29.8B
Shares outstanding
1,522.5M
FX rate
0.7
38.3% undervalued

Equity Value Bridge

TU DCF Financials

Revenue
CA$20.1B -> CA$26.7B 2.9% CAGR
Operating Income
CA$2,804.0M -> CA$3,818.2M 3.1% CAGR
FCFF
CA$2,811.8M -> CA$3,265.6M 1.5% CAGR

TU DCF sensitivity

DCF value
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
3.0%
$24.0
$24.0
$24.0
$24.0
$24.0
3.5%
$23.0
$23.0
$23.0
$23.0
$23.0
4.4%
$21.0
$21.0
$21.0
$21.0
$21.0
4.5%
$21.0
$21.0
$21.0
$21.0
$21.0
5.0%
$20.0
$20.0
$20.0
$20.0
$20.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.5%
2.0%
2.5%
3.0%
3.5%
WACC
3.0%
56.0%
56.0%
56.0%
56.0%
56.0%
3.5%
50.0%
50.0%
50.0%
50.0%
50.0%
4.4%
37.0%
37.0%
37.0%
37.0%
37.0%
4.5%
37.0%
37.0%
37.0%
37.0%
37.0%
5.0%
30.0%
30.0%
30.0%
30.0%
30.0%

Explore more intrinsic value tools hub for TU

FAQ

What is TELUS Corporation DCF (discounted cash flow) valuation?

As of Mar 11, 2025, TELUS Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $21.2. This suggests it may be undervalued by 38.3% compared to its current price of around $15.4, using a WACC of 4.4% and growth rates of 2.5%.

What is TELUS Corporation WACC?

As of Mar 11, 2025, TELUS Corporation's Weighted Average Cost of Capital (WACC) is approximately 4.4%.

What is TELUS Corporation Enterprise Value?

As of Mar 11, 2025, TELUS Corporation's Enterprise Value (EV) is approximately CA$76.4B. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.