Intrinsic value of TELUS Corporation - T

Previous Close

$44.93

  Intrinsic Value

$17.15

stock screener

  Rating & Target

str. sell

-62%

  Value-price divergence*

0%

Previous close

$44.93

 
Intrinsic value

$17.15

 
Up/down potential

-62%

 
Rating

str. sell

 
Value-price divergence*

0%

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of T stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 26.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.37
  2.90
  3.11
  3.30
  3.47
  3.62
  3.76
  3.88
  4.00
  4.10
  4.19
  4.27
  4.34
  4.41
  4.47
  4.52
  4.57
  4.61
  4.65
  4.68
  4.72
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
Revenue, $m
  12,725
  13,094
  13,501
  13,947
  14,430
  14,953
  15,515
  16,118
  16,762
  17,449
  18,179
  18,955
  19,778
  20,649
  21,572
  22,547
  23,576
  24,663
  25,810
  27,019
  28,294
  29,636
  31,050
  32,538
  34,105
  35,753
  37,486
  39,310
  41,227
  43,243
  45,363
Variable operating expenses, $m
 
  11,093
  11,426
  11,790
  12,186
  12,614
  13,074
  13,567
  14,094
  14,656
  15,254
  15,510
  16,183
  16,896
  17,651
  18,448
  19,291
  20,181
  21,119
  22,108
  23,151
  24,249
  25,406
  26,624
  27,906
  29,254
  30,673
  32,165
  33,734
  35,383
  37,118
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  11,018
  11,093
  11,426
  11,790
  12,186
  12,614
  13,074
  13,567
  14,094
  14,656
  15,254
  15,510
  16,183
  16,896
  17,651
  18,448
  19,291
  20,181
  21,119
  22,108
  23,151
  24,249
  25,406
  26,624
  27,906
  29,254
  30,673
  32,165
  33,734
  35,383
  37,118
Operating income, $m
  1,707
  2,001
  2,075
  2,156
  2,244
  2,339
  2,441
  2,551
  2,668
  2,793
  2,926
  3,445
  3,595
  3,753
  3,921
  4,098
  4,285
  4,483
  4,691
  4,911
  5,143
  5,387
  5,644
  5,914
  6,199
  6,498
  6,814
  7,145
  7,493
  7,860
  8,245
EBITDA, $m
  3,754
  4,163
  4,292
  4,434
  4,588
  4,754
  4,933
  5,124
  5,329
  5,547
  5,779
  6,026
  6,288
  6,565
  6,858
  7,168
  7,495
  7,841
  8,205
  8,590
  8,995
  9,422
  9,871
  10,344
  10,842
  11,366
  11,917
  12,497
  13,107
  13,748
  14,421
Interest expense (income), $m
  510
  517
  540
  565
  593
  623
  656
  691
  729
  769
  812
  858
  906
  957
  1,012
  1,070
  1,130
  1,195
  1,263
  1,334
  1,410
  1,489
  1,573
  1,662
  1,755
  1,852
  1,955
  2,064
  2,178
  2,297
  2,423
Earnings before tax, $m
  1,662
  1,485
  1,535
  1,591
  1,651
  1,716
  1,785
  1,860
  1,939
  2,024
  2,114
  2,588
  2,689
  2,796
  2,909
  3,029
  3,155
  3,288
  3,429
  3,577
  3,733
  3,897
  4,070
  4,253
  4,444
  4,646
  4,858
  5,081
  5,316
  5,563
  5,822
Tax expense, $m
  426
  401
  415
  430
  446
  463
  482
  502
  524
  546
  571
  699
  726
  755
  785
  818
  852
  888
  926
  966
  1,008
  1,052
  1,099
  1,148
  1,200
  1,254
  1,312
  1,372
  1,435
  1,502
  1,572
Net income, $m
  1,223
  1,084
  1,121
  1,161
  1,205
  1,253
  1,303
  1,358
  1,416
  1,477
  1,543
  1,889
  1,963
  2,041
  2,124
  2,211
  2,303
  2,400
  2,503
  2,611
  2,725
  2,845
  2,971
  3,104
  3,244
  3,392
  3,546
  3,709
  3,881
  4,061
  4,250

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  432
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  27,729
  28,099
  28,973
  29,928
  30,967
  32,088
  33,295
  34,588
  35,970
  37,443
  39,011
  40,676
  42,442
  44,312
  46,291
  48,383
  50,593
  52,926
  55,387
  57,982
  60,716
  63,597
  66,631
  69,824
  73,186
  76,722
  80,443
  84,356
  88,471
  92,797
  97,345
Adjusted assets (=assets-cash), $m
  27,297
  28,099
  28,973
  29,928
  30,967
  32,088
  33,295
  34,588
  35,970
  37,443
  39,011
  40,676
  42,442
  44,312
  46,291
  48,383
  50,593
  52,926
  55,387
  57,982
  60,716
  63,597
  66,631
  69,824
  73,186
  76,722
  80,443
  84,356
  88,471
  92,797
  97,345
Revenue / Adjusted assets
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
  0.466
Average production assets, $m
  20,275
  20,859
  21,507
  22,217
  22,988
  23,820
  24,716
  25,676
  26,702
  27,796
  28,959
  30,195
  31,506
  32,894
  34,364
  35,917
  37,557
  39,289
  41,116
  43,042
  45,072
  47,210
  49,462
  51,833
  54,328
  56,954
  59,716
  62,621
  65,675
  68,887
  72,263
Working capital, $m
  -2,477
  -1,519
  -1,566
  -1,618
  -1,674
  -1,735
  -1,800
  -1,870
  -1,944
  -2,024
  -2,109
  -2,199
  -2,294
  -2,395
  -2,502
  -2,615
  -2,735
  -2,861
  -2,994
  -3,134
  -3,282
  -3,438
  -3,602
  -3,774
  -3,956
  -4,147
  -4,348
  -4,560
  -4,782
  -5,016
  -5,262
Total debt, $m
  13,031
  13,169
  13,790
  14,468
  15,205
  16,002
  16,858
  17,777
  18,758
  19,804
  20,917
  22,099
  23,352
  24,680
  26,086
  27,571
  29,140
  30,796
  32,544
  34,386
  36,327
  38,373
  40,527
  42,794
  45,181
  47,692
  50,333
  53,112
  56,033
  59,105
  62,334
Total liabilities, $m
  19,812
  19,950
  20,571
  21,249
  21,986
  22,783
  23,639
  24,558
  25,539
  26,585
  27,698
  28,880
  30,133
  31,461
  32,867
  34,352
  35,921
  37,577
  39,325
  41,167
  43,108
  45,154
  47,308
  49,575
  51,962
  54,473
  57,114
  59,893
  62,814
  65,886
  69,115
Total equity, $m
  7,917
  8,149
  8,402
  8,679
  8,980
  9,306
  9,656
  10,031
  10,431
  10,859
  11,313
  11,796
  12,308
  12,850
  13,424
  14,031
  14,672
  15,348
  16,062
  16,815
  17,608
  18,443
  19,323
  20,249
  21,224
  22,249
  23,328
  24,463
  25,656
  26,911
  28,230
Total liabilities and equity, $m
  27,729
  28,099
  28,973
  29,928
  30,966
  32,089
  33,295
  34,589
  35,970
  37,444
  39,011
  40,676
  42,441
  44,311
  46,291
  48,383
  50,593
  52,925
  55,387
  57,982
  60,716
  63,597
  66,631
  69,824
  73,186
  76,722
  80,442
  84,356
  88,470
  92,797
  97,345
Debt-to-equity ratio
  1.646
  1.620
  1.640
  1.670
  1.690
  1.720
  1.750
  1.770
  1.800
  1.820
  1.850
  1.870
  1.900
  1.920
  1.940
  1.960
  1.990
  2.010
  2.030
  2.040
  2.060
  2.080
  2.100
  2.110
  2.130
  2.140
  2.160
  2.170
  2.180
  2.200
  2.210
Adjusted equity ratio
  0.278
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290
  0.290

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,223
  1,084
  1,121
  1,161
  1,205
  1,253
  1,303
  1,358
  1,416
  1,477
  1,543
  1,889
  1,963
  2,041
  2,124
  2,211
  2,303
  2,400
  2,503
  2,611
  2,725
  2,845
  2,971
  3,104
  3,244
  3,392
  3,546
  3,709
  3,881
  4,061
  4,250
Depreciation, amort., depletion, $m
  2,047
  2,162
  2,217
  2,278
  2,343
  2,415
  2,491
  2,573
  2,661
  2,754
  2,854
  2,581
  2,693
  2,811
  2,937
  3,070
  3,210
  3,358
  3,514
  3,679
  3,852
  4,035
  4,228
  4,430
  4,643
  4,868
  5,104
  5,352
  5,613
  5,888
  6,176
Funds from operations, $m
  3,276
  3,245
  3,338
  3,439
  3,549
  3,667
  3,794
  3,931
  4,076
  4,232
  4,397
  4,470
  4,656
  4,852
  5,061
  5,281
  5,513
  5,758
  6,017
  6,290
  6,577
  6,880
  7,199
  7,535
  7,888
  8,259
  8,650
  9,062
  9,494
  9,948
  10,426
Change in working capital, $m
  57
  -43
  -47
  -52
  -56
  -61
  -65
  -70
  -75
  -80
  -85
  -90
  -95
  -101
  -107
  -113
  -119
  -126
  -133
  -140
  -148
  -156
  -164
  -173
  -182
  -191
  -201
  -212
  -222
  -234
  -246
Cash from operations, $m
  3,219
  3,288
  3,385
  3,491
  3,605
  3,728
  3,860
  4,001
  4,151
  4,311
  4,482
  4,560
  4,751
  4,954
  5,168
  5,394
  5,633
  5,884
  6,150
  6,430
  6,725
  7,036
  7,363
  7,707
  8,069
  8,451
  8,851
  9,273
  9,716
  10,182
  10,672
Maintenance CAPEX, $m
  0
  -1,733
  -1,783
  -1,838
  -1,899
  -1,965
  -2,036
  -2,112
  -2,195
  -2,282
  -2,376
  -2,475
  -2,581
  -2,693
  -2,811
  -2,937
  -3,070
  -3,210
  -3,358
  -3,514
  -3,679
  -3,852
  -4,035
  -4,228
  -4,430
  -4,643
  -4,868
  -5,104
  -5,352
  -5,613
  -5,888
New CAPEX, $m
  -3,132
  -584
  -649
  -710
  -771
  -833
  -896
  -960
  -1,026
  -1,094
  -1,164
  -1,236
  -1,311
  -1,388
  -1,469
  -1,553
  -1,641
  -1,732
  -1,827
  -1,926
  -2,030
  -2,139
  -2,252
  -2,371
  -2,495
  -2,625
  -2,762
  -2,905
  -3,055
  -3,212
  -3,376
Cash from investing activities, $m
  -2,923
  -2,317
  -2,432
  -2,548
  -2,670
  -2,798
  -2,932
  -3,072
  -3,221
  -3,376
  -3,540
  -3,711
  -3,892
  -4,081
  -4,280
  -4,490
  -4,711
  -4,942
  -5,185
  -5,440
  -5,709
  -5,991
  -6,287
  -6,599
  -6,925
  -7,268
  -7,630
  -8,009
  -8,407
  -8,825
  -9,264
Free cash flow, $m
  296
  971
  953
  943
  935
  930
  928
  928
  931
  935
  942
  849
  860
  872
  887
  904
  922
  943
  965
  990
  1,016
  1,045
  1,076
  1,109
  1,144
  1,182
  1,222
  1,264
  1,310
  1,357
  1,408
Issuance/(repayment) of debt, $m
  883
  570
  620
  679
  737
  796
  857
  918
  981
  1,046
  1,113
  1,182
  1,254
  1,328
  1,405
  1,485
  1,569
  1,656
  1,747
  1,842
  1,942
  2,045
  2,154
  2,268
  2,386
  2,511
  2,642
  2,778
  2,921
  3,072
  3,229
Issuance/(repurchase) of shares, $m
  -179
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  983
  570
  620
  679
  737
  796
  857
  918
  981
  1,046
  1,113
  1,182
  1,254
  1,328
  1,405
  1,485
  1,569
  1,656
  1,747
  1,842
  1,942
  2,045
  2,154
  2,268
  2,386
  2,511
  2,642
  2,778
  2,921
  3,072
  3,229
Total cash flow (excl. dividends), $m
  1,279
  1,541
  1,574
  1,621
  1,672
  1,727
  1,785
  1,846
  1,912
  1,981
  2,055
  2,031
  2,113
  2,200
  2,292
  2,389
  2,491
  2,599
  2,712
  2,832
  2,958
  3,090
  3,230
  3,376
  3,531
  3,693
  3,863
  4,043
  4,231
  4,429
  4,637
Retained Cash Flow (-), $m
  -245
  -232
  -253
  -277
  -301
  -325
  -350
  -375
  -401
  -427
  -455
  -483
  -512
  -542
  -574
  -607
  -641
  -677
  -714
  -752
  -793
  -835
  -880
  -926
  -975
  -1,026
  -1,079
  -1,135
  -1,193
  -1,255
  -1,319
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,309
  1,321
  1,344
  1,371
  1,401
  1,435
  1,471
  1,511
  1,554
  1,601
  1,548
  1,601
  1,658
  1,718
  1,782
  1,850
  1,922
  1,999
  2,080
  2,165
  2,255
  2,350
  2,450
  2,556
  2,667
  2,784
  2,908
  3,038
  3,174
  3,318
Discount rate, %
 
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
  34.58
PV of cash for distribution, $m
 
  1,208
  1,115
  1,031
  946
  862
  779
  697
  618
  542
  470
  378
  320
  267
  219
  177
  141
  110
  84
  63
  46
  33
  23
  16
  10
  7
  4
  3
  1
  1
  0
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

TELUS Corporation provides a range of telecommunications products and services in Canada. The company operates through Wireless and Wireline segments. The company’s telecommunications products and services include wireless and wireline voice and data; data services, such as Internet protocol; television; hosting, managed information technology, and cloud-based services; healthcare solutions; and business process outsourcing solutions. It also holds spectrum licenses; and offers wireless handsets. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was founded in 1993 and is based in Vancouver, Canada.

FINANCIAL RATIOS  of  TELUS Corporation (T)

Valuation Ratios
P/E Ratio 21.7
Price to Sales 2.1
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 8.2
Price to Free Cash Flow 304.7
Growth Rates
Sales Growth Rate 2.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -32.3%
Cap. Spend. - 3 Yr. Gr. Rate 7.5%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 146.6%
Total Debt to Equity 164.6%
Interest Coverage 4
Management Effectiveness
Return On Assets 5.9%
Ret/ On Assets - 3 Yr. Avg. 6.9%
Return On Total Capital 6%
Ret/ On T. Cap. - 3 Yr. Avg. 7.4%
Return On Equity 15.7%
Return On Equity - 3 Yr. Avg. 17.5%
Asset Turnover 0.5
Profitability Ratios
Gross Margin 55.7%
Gross Margin - 3 Yr. Avg. 55.6%
EBITDA Margin 33.2%
EBITDA Margin - 3 Yr. Avg. 34.2%
Operating Margin 13.4%
Oper. Margin - 3 Yr. Avg. 16.6%
Pre-Tax Margin 13.1%
Pre-Tax Margin - 3 Yr. Avg. 14.8%
Net Profit Margin 9.6%
Net Profit Margin - 3 Yr. Avg. 10.9%
Effective Tax Rate 25.6%
Eff/ Tax Rate - 3 Yr. Avg. 26.4%
Payout Ratio 87.5%

T stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the T stock intrinsic value calculation we used $12725 million for the last fiscal year's total revenue generated by TELUS Corporation. The default revenue input number comes from 2016 income statement of TELUS Corporation. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our T stock valuation model: a) initial revenue growth rate of 2.9% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.4%, whose default value for T is calculated based on our internal credit rating of TELUS Corporation, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of TELUS Corporation.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of T stock the variable cost ratio is equal to 84.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for T stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 4.1% for TELUS Corporation.

Corporate tax rate of 27% is the nominal tax rate for TELUS Corporation. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the T stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for T are equal to 159.3%.

Life of production assets of 11.7 years is the average useful life of capital assets used in TELUS Corporation operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for T is equal to -11.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $7917 million for TELUS Corporation - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 593.003 million for TELUS Corporation is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of TELUS Corporation at the current share price and the inputted number of shares is $26.6 billion.

RELATED COMPANIES Price Int.Val. Rating
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Stock chart of T Financial statements of T
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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