TELUS stock has fallen sharply over the past few years, yet the broader valuation checks still lean cheap rather than expensive. After the recent dividend cut and ongoing share price pressure, investors are weighing whether the current level fairly reflects the risks now priced into TELUS.
- The share price is down 36.2% over the past 5 years, which shows how much sentiment around TELUS has weakened.
- The recent dividend reduction to support debt reduction and business simplification can help long term flexibility, but it also underlines the risk that cash returns to shareholders may stay constrained for some time.
- TELUS scores highly on valuation checks, with 5 of 6 indicators pointing to a stock that looks cheaper than many of its fundamentals might suggest.
The issue now is whether TELUS at around C$13.38 is simply reflecting a tougher backdrop or offering investors better value than its recent share performance implies.
Find out why TELUS' -33.9% return over the last year is lagging behind its peers.
Does TELUS Look Fairly Valued on Sales?
The P/S ratio suits TELUS because revenue is usually more stable than earnings for telecom groups going through heavy investment cycles. TELUS currently trades on a P/S multiple of about 1.1x, which is below both the industry average of 1.4x and the peer average of 1.2x. That places the stock at a modest discount to the wider telecom group on a straightforward sales basis.
The Fair Ratio model suggests a P/S level of around 1.1x for TELUS, which is very close to where the stock currently trades. That implies the current share price is broadly in line with what this framework would expect given TELUS' size, margins and risk profile. Despite the recent dividend cut and Q2 loss in 2026, the market multiple on sales does not look stretched compared with sector norms.
On the P/S multiple, TELUS stock currently looks roughly fairly valued relative to both its own fundamentals and telecom peers.
See what the numbers say about this price — find out in our valuation breakdown.
The TELUS Narrative: What Would Justify Today's Price?
Simply Wall St Narratives for TELUS give you a structured way to connect the current valuation puzzle with concrete expectations for TELUS' future growth, margins and earnings. Each narrative ties a fair value estimate to a specific storyline about the company's potential catalysts and risks, which helps you track over time which version of events appears to be unfolding. These narratives sit on Simply Wall St's Community page for TELUS' stock.
One of the top community narratives on TELUS: 19% undervalued
"Sustained investment in network modernization with a $2b commitment to expand broadband in key markets and asset monetization through the Terrion tower partnership should drive high incremental returns..."
Read one of the top narratives on TELUS
Do you think there's more to the story for TELUS? Head over to our Community to see what others are saying!
The Bottom Line
For TELUS, the core valuation message is that the stock now trades on a P/S multiple that looks about right relative to peers and its own fundamentals. The broad set of valuation checks is still supportive, which suggests the current price already bakes in much of the concern around leverage, the dividend reset and recent earnings pressure.
From here, the key question is whether TELUS can use that financial breathing room to stabilise margins and simplify the business enough to justify any future re rating, rather than seeing today’s discount turn into a long term value trap.
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.
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