Intrinsic value of TELUS - TU

Previous Close

$36.65

  Intrinsic Value

$1.92

stock screener

  Rating & Target

str. sell

-95%

Previous close

$36.65

 
Intrinsic value

$1.92

 
Up/down potential

-95%

 
Rating

str. sell

We calculate the intrinsic value of TU 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

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

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
  9.70
  9.23
  8.81
  8.43
  8.08
  7.78
  7.50
  7.25
  7.02
  6.82
  6.64
  6.47
  6.33
  6.19
  6.08
  5.97
  5.87
  5.78
  5.71
  5.63
  5.57
  5.51
  5.46
  5.42
  5.37
  5.34
  5.30
  5.27
  5.25
  5.22
Revenue, $m
  9,418
  11,465
  12,523
  13,626
  14,774
  15,968
  17,210
  18,500
  19,841
  21,235
  22,683
  24,189
  25,755
  27,385
  29,081
  30,848
  32,689
  34,608
  36,609
  38,698
  40,879
  43,156
  45,536
  48,024
  50,625
  53,346
  56,193
  59,174
  62,294
  65,562
  68,985
Variable operating expenses, $m
 
  6,123
  6,581
  7,057
  7,554
  8,070
  8,606
  9,164
  9,744
  10,346
  10,972
  10,454
  11,131
  11,835
  12,569
  13,332
  14,128
  14,957
  15,822
  16,725
  17,668
  18,652
  19,680
  20,755
  21,880
  23,056
  24,286
  25,574
  26,923
  28,335
  29,815
Fixed operating expenses, $m
 
  2,836
  2,898
  2,962
  3,027
  3,094
  3,162
  3,232
  3,303
  3,375
  3,450
  3,526
  3,603
  3,682
  3,763
  3,846
  3,931
  4,017
  4,106
  4,196
  4,288
  4,383
  4,479
  4,578
  4,678
  4,781
  4,886
  4,994
  5,104
  5,216
  5,331
Total operating expenses, $m
  7,803
  8,959
  9,479
  10,019
  10,581
  11,164
  11,768
  12,396
  13,047
  13,721
  14,422
  13,980
  14,734
  15,517
  16,332
  17,178
  18,059
  18,974
  19,928
  20,921
  21,956
  23,035
  24,159
  25,333
  26,558
  27,837
  29,172
  30,568
  32,027
  33,551
  35,146
Operating income, $m
  1,615
  2,505
  3,044
  3,606
  4,193
  4,804
  5,441
  6,104
  6,795
  7,513
  8,261
  10,209
  11,021
  11,867
  12,749
  13,669
  14,630
  15,633
  16,682
  17,777
  18,923
  20,122
  21,377
  22,691
  24,067
  25,509
  27,021
  28,605
  30,267
  32,011
  33,839
EBITDA, $m
  3,130
  5,810
  6,545
  7,313
  8,114
  8,948
  9,816
  10,720
  11,660
  12,638
  13,656
  14,715
  15,819
  16,969
  18,167
  19,416
  20,720
  22,081
  23,502
  24,987
  26,539
  28,162
  29,860
  31,637
  33,498
  35,447
  37,489
  39,629
  41,873
  44,225
  46,691
Interest expense (income), $m
  377
  584
  569
  684
  803
  927
  1,056
  1,190
  1,329
  1,474
  1,624
  1,781
  1,943
  2,113
  2,289
  2,472
  2,663
  2,861
  3,069
  3,285
  3,510
  3,746
  3,992
  4,249
  4,518
  4,799
  5,092
  5,400
  5,722
  6,059
  6,412
Earnings before tax, $m
  1,230
  1,922
  2,474
  2,923
  3,390
  3,878
  4,386
  4,915
  5,466
  6,039
  6,637
  8,428
  9,077
  9,754
  10,461
  11,198
  11,968
  12,772
  13,613
  14,492
  15,413
  16,376
  17,385
  18,442
  19,549
  20,711
  21,928
  23,205
  24,545
  25,952
  27,428
Tax expense, $m
  315
  519
  668
  789
  915
  1,047
  1,184
  1,327
  1,476
  1,631
  1,792
  2,276
  2,451
  2,634
  2,824
  3,023
  3,231
  3,448
  3,675
  3,913
  4,161
  4,422
  4,694
  4,979
  5,278
  5,592
  5,921
  6,265
  6,627
  7,007
  7,405
Net income, $m
  905
  1,403
  1,806
  2,134
  2,475
  2,831
  3,202
  3,588
  3,990
  4,409
  4,845
  6,153
  6,627
  7,121
  7,636
  8,174
  8,736
  9,324
  9,937
  10,579
  11,251
  11,954
  12,691
  13,462
  14,271
  15,119
  16,008
  16,940
  17,918
  18,945
  20,022

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  320
  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
  20,524
  25,477
  27,829
  30,280
  32,831
  35,485
  38,244
  41,112
  44,091
  47,188
  50,407
  53,753
  57,233
  60,855
  64,625
  68,551
  72,642
  76,906
  81,354
  85,996
  90,842
  95,903
  101,191
  106,719
  112,500
  118,547
  124,874
  131,497
  138,431
  145,693
  153,300
Adjusted assets (=assets-cash), $m
  20,204
  25,477
  27,829
  30,280
  32,831
  35,485
  38,244
  41,112
  44,091
  47,188
  50,407
  53,753
  57,233
  60,855
  64,625
  68,551
  72,642
  76,906
  81,354
  85,996
  90,842
  95,903
  101,191
  106,719
  112,500
  118,547
  124,874
  131,497
  138,431
  145,693
  153,300
Revenue / Adjusted assets
  0.466
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
  0.450
Average production assets, $m
  15,006
  21,359
  23,330
  25,385
  27,524
  29,749
  32,062
  34,466
  36,964
  39,560
  42,258
  45,064
  47,982
  51,018
  54,178
  57,469
  60,899
  64,474
  68,203
  72,095
  76,157
  80,400
  84,834
  89,468
  94,314
  99,384
  104,688
  110,240
  116,054
  122,142
  128,519
Working capital, $m
  -1,833
  -1,789
  -1,954
  -2,126
  -2,305
  -2,491
  -2,685
  -2,886
  -3,095
  -3,313
  -3,539
  -3,773
  -4,018
  -4,272
  -4,537
  -4,812
  -5,099
  -5,399
  -5,711
  -6,037
  -6,377
  -6,732
  -7,104
  -7,492
  -7,897
  -8,322
  -8,766
  -9,231
  -9,718
  -10,228
  -10,762
Total debt, $m
  9,645
  10,541
  12,658
  14,863
  17,160
  19,548
  22,032
  24,612
  27,294
  30,081
  32,978
  35,989
  39,122
  42,381
  45,774
  49,307
  52,989
  56,827
  60,831
  65,008
  69,369
  73,925
  78,684
  83,659
  88,862
  94,304
  99,998
  105,959
  112,200
  118,736
  125,582
Total liabilities, $m
  14,664
  22,929
  25,046
  27,252
  29,548
  31,937
  34,420
  37,000
  39,682
  42,469
  45,366
  48,378
  51,510
  54,769
  58,162
  61,696
  65,377
  69,216
  73,219
  77,396
  81,758
  86,313
  91,072
  96,047
  101,250
  106,692
  112,387
  118,347
  124,588
  131,124
  137,970
Total equity, $m
  5,860
  2,548
  2,783
  3,028
  3,283
  3,549
  3,824
  4,111
  4,409
  4,719
  5,041
  5,375
  5,723
  6,085
  6,462
  6,855
  7,264
  7,691
  8,135
  8,600
  9,084
  9,590
  10,119
  10,672
  11,250
  11,855
  12,487
  13,150
  13,843
  14,569
  15,330
Total liabilities and equity, $m
  20,524
  25,477
  27,829
  30,280
  32,831
  35,486
  38,244
  41,111
  44,091
  47,188
  50,407
  53,753
  57,233
  60,854
  64,624
  68,551
  72,641
  76,907
  81,354
  85,996
  90,842
  95,903
  101,191
  106,719
  112,500
  118,547
  124,874
  131,497
  138,431
  145,693
  153,300
Debt-to-equity ratio
  1.646
  4.140
  4.550
  4.910
  5.230
  5.510
  5.760
  5.990
  6.190
  6.370
  6.540
  6.700
  6.840
  6.960
  7.080
  7.190
  7.290
  7.390
  7.480
  7.560
  7.640
  7.710
  7.780
  7.840
  7.900
  7.950
  8.010
  8.060
  8.110
  8.150
  8.190
Adjusted equity ratio
  0.278
  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
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  905
  1,403
  1,806
  2,134
  2,475
  2,831
  3,202
  3,588
  3,990
  4,409
  4,845
  6,153
  6,627
  7,121
  7,636
  8,174
  8,736
  9,324
  9,937
  10,579
  11,251
  11,954
  12,691
  13,462
  14,271
  15,119
  16,008
  16,940
  17,918
  18,945
  20,022
Depreciation, amort., depletion, $m
  1,515
  3,304
  3,502
  3,707
  3,921
  4,143
  4,375
  4,615
  4,865
  5,125
  5,394
  4,506
  4,798
  5,102
  5,418
  5,747
  6,090
  6,447
  6,820
  7,209
  7,616
  8,040
  8,483
  8,947
  9,431
  9,938
  10,469
  11,024
  11,605
  12,214
  12,852
Funds from operations, $m
  2,425
  4,707
  5,308
  5,841
  6,396
  6,974
  7,576
  8,203
  8,855
  9,533
  10,239
  10,659
  11,425
  12,222
  13,054
  13,921
  14,826
  15,771
  16,758
  17,789
  18,867
  19,994
  21,174
  22,409
  23,702
  25,057
  26,476
  27,964
  29,524
  31,159
  32,874
Change in working capital, $m
  42
  -158
  -165
  -172
  -179
  -186
  -194
  -201
  -209
  -217
  -226
  -235
  -244
  -254
  -265
  -276
  -287
  -299
  -312
  -326
  -340
  -355
  -371
  -388
  -406
  -424
  -444
  -465
  -487
  -510
  -534
Cash from operations, $m
  2,383
  4,865
  5,473
  6,013
  6,575
  7,160
  7,770
  8,404
  9,064
  9,751
  10,465
  10,894
  11,669
  12,477
  13,319
  14,197
  15,113
  16,070
  17,070
  18,115
  19,207
  20,350
  21,546
  22,797
  24,108
  25,482
  26,921
  28,429
  30,010
  31,669
  33,408
Maintenance CAPEX, $m
  0
  -1,946
  -2,136
  -2,333
  -2,538
  -2,752
  -2,975
  -3,206
  -3,447
  -3,696
  -3,956
  -4,226
  -4,506
  -4,798
  -5,102
  -5,418
  -5,747
  -6,090
  -6,447
  -6,820
  -7,209
  -7,616
  -8,040
  -8,483
  -8,947
  -9,431
  -9,938
  -10,469
  -11,024
  -11,605
  -12,214
New CAPEX, $m
  -2,318
  -1,894
  -1,971
  -2,055
  -2,139
  -2,225
  -2,313
  -2,404
  -2,498
  -2,596
  -2,698
  -2,805
  -2,918
  -3,036
  -3,160
  -3,291
  -3,430
  -3,575
  -3,729
  -3,891
  -4,062
  -4,243
  -4,433
  -4,634
  -4,846
  -5,069
  -5,305
  -5,552
  -5,813
  -6,088
  -6,377
Cash from investing activities, $m
  -2,163
  -3,840
  -4,107
  -4,388
  -4,677
  -4,977
  -5,288
  -5,610
  -5,945
  -6,292
  -6,654
  -7,031
  -7,424
  -7,834
  -8,262
  -8,709
  -9,177
  -9,665
  -10,176
  -10,711
  -11,271
  -11,859
  -12,473
  -13,117
  -13,793
  -14,500
  -15,243
  -16,021
  -16,837
  -17,693
  -18,591
Free cash flow, $m
  220
  1,025
  1,366
  1,625
  1,897
  2,183
  2,482
  2,794
  3,119
  3,458
  3,811
  3,863
  4,245
  4,642
  5,056
  5,488
  5,937
  6,405
  6,893
  7,403
  7,935
  8,491
  9,072
  9,680
  10,315
  10,981
  11,678
  12,408
  13,173
  13,975
  14,817
Issuance/(repayment) of debt, $m
  654
  -268
  2,116
  2,206
  2,296
  2,389
  2,483
  2,581
  2,682
  2,787
  2,897
  3,012
  3,132
  3,259
  3,393
  3,533
  3,682
  3,838
  4,003
  4,177
  4,361
  4,555
  4,760
  4,975
  5,202
  5,442
  5,695
  5,961
  6,241
  6,536
  6,846
Issuance/(repurchase) of shares, $m
  -132
  1,131
  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  
  728
  863
  2,116
  2,206
  2,296
  2,389
  2,483
  2,581
  2,682
  2,787
  2,897
  3,012
  3,132
  3,259
  3,393
  3,533
  3,682
  3,838
  4,003
  4,177
  4,361
  4,555
  4,760
  4,975
  5,202
  5,442
  5,695
  5,961
  6,241
  6,536
  6,846
Total cash flow (excl. dividends), $m
  947
  1,888
  3,482
  3,831
  4,194
  4,572
  4,965
  5,375
  5,801
  6,245
  6,708
  6,874
  7,377
  7,902
  8,449
  9,021
  9,619
  10,243
  10,897
  11,581
  12,296
  13,046
  13,832
  14,655
  15,518
  16,423
  17,372
  18,368
  19,414
  20,511
  21,663
Retained Cash Flow (-), $m
  -182
  -2,534
  -235
  -245
  -255
  -265
  -276
  -287
  -298
  -310
  -322
  -335
  -348
  -362
  -377
  -393
  -409
  -426
  -445
  -464
  -485
  -506
  -529
  -553
  -578
  -605
  -633
  -662
  -693
  -726
  -761
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
 
  10
  11
  13
  14
  15
  16
  17
  19
  20
  21
  23
  24
  26
  27
  29
  31
  33
  35
  37
  39
  41
  43
  46
  48
  51
  53
  56
  59
  62
  66
Cash available for distribution, $m
 
  -646
  3,247
  3,586
  3,939
  4,306
  4,689
  5,088
  5,503
  5,936
  6,386
  6,540
  7,029
  7,540
  8,072
  8,628
  9,210
  9,817
  10,452
  11,116
  11,812
  12,540
  13,303
  14,102
  14,940
  15,818
  16,740
  17,706
  18,720
  19,785
  20,902
Discount rate, %
 
  11.10
  11.66
  12.24
  12.85
  13.49
  14.17
  14.88
  15.62
  16.40
  17.22
  18.08
  18.98
  19.93
  20.93
  21.98
  23.08
  24.23
  25.44
  26.71
  28.05
  29.45
  30.92
  32.47
  34.09
  35.80
  37.59
  39.47
  41.44
  43.51
  45.69
PV of cash for distribution, $m
 
  -581
  2,604
  2,536
  2,428
  2,287
  2,118
  1,927
  1,723
  1,513
  1,304
  1,051
  873
  710
  564
  438
  332
  246
  177
  124
  84
  55
  35
  22
  13
  8
  4
  2
  1
  1
  0
Current shareholders' claim on cash, %
  100
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0
  11.0

TELUS Corporation (TELUS) is a telecommunications company. The Company provides a range of telecommunications services and products, including wireless and wireline voice and data. Its data services include Internet protocol (IP), television (TV), hosting, managed information technology and cloud-based services, and certain healthcare solutions. The Company operates through two business segments: Wireless segment and Wireline segment. Its wireless and wireline businesses are primarily operated through TELUS Communications Company (TCC). The Company offers business services, including healthcare, across wireless and wireline are supported through TELUS sales representatives, product specialists, independent dealers and online self-serve applications for small and medium-sized businesses (SMBs). Its business process outsourcing services are supported through sales representatives and client relationship management teams.

FINANCIAL RATIOS  of  TELUS (TU)

Valuation Ratios
P/E Ratio 23.9
Price to Sales 2.3
Price to Book 3.7
Price to Tangible Book
Price to Cash Flow 9.1
Price to Free Cash Flow 332.7
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 55.8%
Gross Margin - 3 Yr. Avg. 55.6%
EBITDA Margin 33.1%
EBITDA Margin - 3 Yr. Avg. 34.2%
Operating Margin 17.1%
Oper. Margin - 3 Yr. Avg. 19.1%
Pre-Tax Margin 13.1%
Pre-Tax Margin - 3 Yr. Avg. 14.9%
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%

TU stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the TU stock intrinsic value calculation we used $10451 million for the last fiscal year's total revenue generated by TELUS. The default revenue input number comes from 2016 income statement of TELUS. 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 TU stock valuation model: a) initial revenue growth rate of 9.7% 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 11.1%, whose default value for TU is calculated based on our internal credit rating of TELUS, 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.
    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 TU stock the variable cost ratio is equal to 54.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $2775 million in the base year in the intrinsic value calculation for TU 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 5.4% for TELUS.

Corporate tax rate of 27% is the nominal tax rate for TELUS. 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 TU stock is equal to 0.1%.

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 TU are equal to 186.3%.

Life of production assets of 10 years is the average useful life of capital assets used in TELUS 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 TU is equal to -15.6%. 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 - $14 million for TELUS - 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 1297 million for TELUS 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 at the current share price and the inputted number of shares is $47.5 billion.

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COMPANY NEWS

▶ TELUS successfully closes US debt offering   [Jun-12-18 09:56AM  GlobeNewswire]
▶ A Look At The Intrinsic Value Of TELUS Corporation (TSE:T)   [Jun-11-18 05:52PM  Simply Wall St.]
▶ June Top Dividend Paying Stocks   [Jun-10-18 09:02AM  Simply Wall St.]
▶ TELUS announces pricing of US debt offering   [Jun-07-18 08:00PM  GlobeNewswire]
▶ PRESS DIGEST-Canada-May 11   [07:05AM  Reuters]
▶ TELUS announces election of directors   [May-10-18 04:54PM  GlobeNewswire]
▶ Telus Corporation Notice of Cash Dividend   [07:05AM  GlobeNewswire]
▶ Did TELUS Corporation (TSE:T) Create Value For Shareholders?   [May-09-18 06:38PM  Simply Wall St.]
▶ Value-Adding Dividend Stocks To Buy Now   [May-08-18 09:02AM  Simply Wall St.]
▶ Why TELUS Corporation (TSE:T) Is A Dividend Rockstar   [Apr-20-18 06:02PM  Simply Wall St.]
▶ TELUS launches breathtaking 4K HDR TV -- a first in Canada   [Apr-19-18 08:00AM  GlobeNewswire]
▶ Is TELUS Corporation (TSE:T) A Financially Sound Company?   [Apr-11-18 09:03AM  Simply Wall St.]
▶ TELUS Corporation (TSE:T): Immense Growth Potential?   [Mar-26-18 09:16AM  Simply Wall St.]
▶ Top Rated Dividend Stocks   [08:02AM  Simply Wall St.]
▶ TELUS announces debt offering   [Feb-27-18 04:15PM  GlobeNewswire]
▶ January Top Dividend Stock   [Jan-25-18 08:02AM  Simply Wall St.]
▶ Telus Stock Could See 20% Gain From Here   [Jan-03-18 11:03AM  TheStreet.com]
▶ Is TELUS Corporations (TSE:T) ROE Of 15.29% Sustainable?   [Dec-29-17 08:07AM  Simply Wall St.]
▶ December Dividend Stock Picks   [Dec-25-17 08:02AM  Simply Wall St.]
▶ ETFs with exposure to TELUS Corp. : December 18, 2017   [Dec-18-17 04:36PM  Capital Cube]
▶ Telus Earns RS Rating Upgrade   [Dec-07-17 03:00AM  Investor's Business Daily]
▶ Pay Less for Inflation-Beating Gains With BCE Inc. (USA)   [Dec-06-17 10:13AM  InvestorPlace]
▶ ETFs with exposure to TELUS Corp. : November 30, 2017   [Nov-30-17 02:32PM  Capital Cube]
▶ Best Dividend Stocks This Month   [Nov-24-17 08:02AM  Simply Wall St.]
▶ Is TELUS Corporation (TSX:T) A Financially Sound Company?   [Nov-20-17 05:09PM  Simply Wall St.]
▶ Stocks Showing Improved Relative Strength: Telus   [Nov-13-17 03:00AM  Investor's Business Daily]
▶ TELUS Corporation to Host Earnings Call   [08:30AM  ACCESSWIRE]
▶ Telus misses 3Q profit forecasts   [07:25AM  Associated Press]
▶ Should You Sell TELUS (TU) Before Earnings?   [Nov-08-17 08:44AM  Zacks]
Financial statements of TU
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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