Undervalued Telecommunication Service Stocks on TSE December 2023

December 31, 2023

December 2023

Industry Group

QBR.B:TSE

Telecommunication Services

Telecommunication Services

Companies in the Telecommunication Services industry provide local, national, international, and long-distance phone services and wireless services. This industry group also includes companies providing services for faxing, prepaid phone cards, pay phones and directory assistance, or that provide internet access services.

Toronto Stock Exchange

The Toronto Stock Exchange (TSE) is a stock exchange located in Toronto, Ontario, Canada. It is the 10th largest exchange in the world and the third largest in North America based on market capitalization.

Our Valuation

A stock is considered undervalued if it trades at a discount to our valuation. To determine a stock’s intrinsic value, we developed an algorithm that uses 6 valuation models to determine the value of a company.* To learn more about stockcalc’s valuation methods, click here.

Undervalued Telecommunication Services stocks

Stocks in this category are held primarily for potential income and capital appreciation.

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Symbol	Name	Close Price ($)	Valuation ($)	Difference (%)	Average Vol (30D)	Market Cap ($M)	Yield (%)	P/E Ratio
QBR.B	Quebecor	31.04	34.90	12.43	551323	7332	3.86	11.2
CCA	Cogeco Communications	57.56	64.47	12.01	172688	2582	5.54	6.6
T	TELUS	23.29	24.67	5.94	3303509	33980	6.24	43.1
QBR.A	Quebecor	33.80	35.02	3.61	632	7984	3.55	12.2
BCE	BCE	51.45	53.19	3.39	2920525	46938	7.53	21.1

All data provided as at market close December 21, 2023.

Company Details

Quebecor

QBR.B:TSX

Close Price

31.04

Our Valuation

34.90

% Difference

12.43

Market Cap ($M)

7332

P/E Ratio

11.2

Quebecor primarily provides telecom services in Quebec, where it has roughly 1.7 million internet subscribers—equating to a penetration rate of about 50% in its footprint—and over 3 million mobile subscribers, including more than 20% wireless market share in Quebec. With the acquisition of Freedom Mobile in April 2023, Quebecor also has more than 1.5 million mobile subscribers in Ontario, British Columbia, and Alberta.

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Cogeco Communications

CCA:TSX

Close Price

57.56

Our Valuation

64.47

% Difference

12.01

Market Cap ($M)

2582

P/E Ratio

6.6

Cogeco Communications Inc is a communication corporation. The company is a cable operator in North America operating in Canada. It provides Internet, video and phone services to residential, business and other customers. The reportable segments of the company are Canadian telecommunications and American telecommunications. The company earns majority of its revenue from American telecommunications. The company operates in Canada and United States.

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TELUS

T:TSX

Close Price

23.29

Our Valuation

24.67

% Difference

5.94

Market Cap ($M)

33980

P/E Ratio

43.1

Telus is one of the Big Three wireless service providers in Canada, with its nearly 10 million mobile phone subscribers nationwide constituting about 30% of the total market. It is the incumbent local exchange carrier in the western Canadian provinces of British Columbia and Alberta, where it provides internet, television, and landline phone services. It also has a small wireline presence in eastern Quebec.

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Quebecor

QBR.A:TSX

Close Price

33.80

Our Valuation

35.02

% Difference

3.61

Market Cap ($M)

7984

P/E Ratio

12.2

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BCE

BCE:TSX

Close Price

51.45

Our Valuation

53.19

% Difference

3.39

Market Cap ($M)

46938

P/E Ratio

21.1

BCE provides wireless, broadband, television, and landline phone services in Canada. It is one of the big three national wireless carriers, with its roughly 10 million customers constituting about 30% of the market. It is also the ILEC (incumbent local exchange carrier—the legacy telephone provider) throughout much of the eastern half of Canada, including in the most populous Canadian provinces: Ontario and Quebec.

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