Latest Ratios: P/E Ratio 16.7x · EV/EBITDA 7.4x · ROE 6.7%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $13.4B | $20.2B | $20.2B | $25.9B | $27.1B | $31.8B | $25.3B | $23.3B | $19.8B | $22.5B | $18.9B |
| Enterprise Value | $33.8B | $49.1B | $49.1B | $52.5B | $51.3B | $52.1B | $40.6B | $37.2B | $33.6B | $35.7B | $31.5B |
| P/E Ratio → | 16.70 | 18.29 | 20.24 | 30.67 | 16.79 | 19.16 | 21.06 | 13.35 | 12.37 | 14.34 | 15.47 |
| P/S Ratio | 0.92 | 0.99 | 1.00 | 1.30 | 1.48 | 1.89 | 1.65 | 1.60 | 1.40 | 1.70 | 1.48 |
| P/B Ratio | 1.11 | 1.22 | 1.20 | 1.50 | 1.53 | 1.98 | 2.57 | 2.84 | 1.91 | 2.72 | 2.38 |
| P/FCF | 8.05 | 8.60 | 13.80 | 20.12 | 23.27 | — | — | 706.35 | 16.72 | 25.92 | 58.67 |
| P/OCF | 3.89 | 4.15 | 4.16 | 5.76 | 5.63 | 7.26 | 5.53 | 5.94 | 4.88 | 5.69 | 5.87 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.39 | 2.44 | 2.62 | 2.80 | 3.09 | 2.65 | 2.55 | 2.38 | 2.70 | 2.47 |
| EV / EBITDA | 7.44 | 7.64 | 7.17 | 8.16 | 8.00 | 8.28 | 7.40 | 6.70 | 6.56 | 7.48 | 7.43 |
| EV / EBIT | 20.21 | 17.13 | 18.57 | 22.04 | 16.07 | 16.89 | 16.54 | 12.60 | 11.91 | 12.97 | 14.51 |
| EV / FCF | — | 20.87 | 33.60 | 40.77 | 44.04 | — | — | 1127.89 | 28.38 | 41.23 | 97.80 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.8% | 33.8% | 62.1% | 62.3% | 61.1% | 60.2% | 59.1% | 58.4% | 54.8% | 55.0% | 55.7% |
| Operating Margin | 11.5% | 11.5% | 13.9% | 11.8% | 16.1% | 18.3% | 16.2% | 20.4% | 20.1% | 19.7% | 17.1% |
| Net Profit Margin | 5.4% | 5.4% | 4.9% | 4.2% | 8.8% | 9.8% | 7.9% | 12.0% | 11.4% | 11.1% | 9.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.7% | 6.7% | 5.8% | 4.8% | 9.6% | 12.8% | 13.3% | 18.8% | 17.2% | 18.0% | 15.7% |
| ROA | 1.9% | 1.9% | 1.7% | 1.5% | 3.2% | 4.0% | 3.8% | 5.6% | 5.1% | 5.1% | 4.5% |
| ROIC | 3.9% | 3.9% | 4.7% | 4.1% | 5.7% | 7.5% | 7.9% | 9.7% | 9.3% | 9.3% | 8.2% |
| ROCE | 4.8% | 4.8% | 5.9% | 5.1% | 6.9% | 8.9% | 9.1% | 11.2% | 10.8% | 11.1% | 9.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.90 | 1.90 | 1.77 | 1.59 | 1.42 | 1.31 | 1.62 | 1.74 | 1.37 | 1.67 | 1.64 |
| Debt / EBITDA | 4.90 | 4.90 | 4.35 | 4.27 | 3.92 | 3.33 | 2.91 | 2.58 | 2.78 | 2.88 | 3.07 |
| Net Debt / Equity | — | 1.74 | 1.72 | 1.54 | 1.37 | 1.26 | 1.55 | 1.69 | 1.33 | 1.60 | 1.59 |
| Net Debt / EBITDA | 4.49 | 4.49 | 4.23 | 4.13 | 3.77 | 3.22 | 2.79 | 2.50 | 2.70 | 2.78 | 2.97 |
| Debt / FCF | — | 12.27 | 19.80 | 20.64 | 20.76 | — | — | 421.54 | 11.65 | 15.30 | 39.13 |
| Interest Coverage | 1.88 | 1.88 | 1.87 | 1.84 | 3.68 | 3.83 | 3.29 | 4.17 | 4.39 | 4.71 | 4.27 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.86 | 0.86 | 0.68 | 0.67 | 0.74 | 0.61 | 0.79 | 0.78 | 0.79 | 0.56 | 0.50 |
| Quick Ratio | 0.81 | 0.81 | 0.61 | 0.62 | 0.67 | 0.55 | 0.72 | 0.70 | 0.72 | 0.48 | 0.44 |
| Cash Ratio | 0.27 | 0.27 | 0.09 | 0.09 | 0.12 | 0.09 | 0.14 | 0.10 | 0.09 | 0.10 | 0.09 |
| Asset Turnover | — | 0.34 | 0.35 | 0.36 | 0.34 | 0.35 | 0.45 | 0.50 | 0.43 | 0.45 | 0.46 |
| Inventory Turnover | 28.18 | 28.18 | 12.14 | 15.57 | 13.23 | 14.95 | 19.62 | 18.01 | 16.94 | 15.70 | 17.71 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 8.8% | 8.1% | 7.8% | 5.1% | 4.4% | 3.3% | 3.7% | 4.9% | 5.8% | 4.8% | 5.7% |
| Payout Ratio | 146.3% | 146.3% | 157.3% | 156.4% | 73.6% | 63.1% | 77.1% | 65.8% | 71.3% | 74.1% | 87.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 6.0% | 5.5% | 4.9% | 3.3% | 6.0% | 5.2% | 4.7% | 7.5% | 8.1% | 7.0% | 6.5% |
| FCF Yield | 12.4% | 11.6% | 7.2% | 5.0% | 4.3% | — | — | 0.1% | 6.0% | 3.9% | 1.7% |
| Buyback Yield | 0.2% | 0.2% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.5% | 0.0% | 0.9% |
| Total Shareholder Yield | 9.0% | 8.3% | 7.8% | 5.1% | 4.4% | 3.3% | 3.7% | 4.9% | 6.3% | 4.8% | 6.6% |
| Shares Outstanding | — | $1.5B | $1.5B | $1.5B | $1.4B | $1.4B | $1.3B | $1.2B | $1.2B | $1.2B | $1.2B |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying TU stock.
Telus Corp's current P/E ratio is 16.7x. The historical average is 18.4x. This places it at the 56th percentile of its historical range.
Telus Corp's current EV/EBITDA is 7.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 6.3x.
Telus Corp's return on equity (ROE) is 6.7%. The historical average is 11.8%.
Based on historical data, Telus Corp is trading at a P/E of 16.7x. This is at the 56th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Telus Corp's current dividend yield is 8.82% with a payout ratio of 146.3%.
Telus Corp has 33.8% gross margin and 11.5% operating margin. Operating margin between 10-20% is typical for established companies.
Telus Corp's Debt/EBITDA ratio is 4.9x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
High leverage and payout
Yield Anchors Valuation Amid Earnings Volatility
Trading at 18.9x trailing earnings with a 7.8% dividend yield, Telus's valuation appears stretched relative to BCE's 4.8x P/E, reflecting market skepticism about earnings quality, as per recent market data.
The P/E multiple is elevated compared to domestic peer BCE (4.84x) and even AT&T (8.28x), suggesting investors are paying a premium for Telus's perceived growth in Health and Agriculture, yet the 7.8% yield is among the highest in the peer set, indicating the market demands compensation for risk. The forward P/E of 16.77 implies an expectation of earnings recovery, but given the recent net loss and strained profitability, this may be optimistic. The yield spread over 10-year Canadian government bonds is substantial, but it may be a warning of dividend sustainability concerns rather than an opportunity.
Earned ROE Collapses Below Authorized Levels
Reported ROE swung to -12.1% in 2026Q2 from 3.4% in 2025Q3, far below typical authorized returns of 9-10%, indicating severe regulatory lag or one-time charges, as per quarterly financial data.
The negative ROE in the latest quarter is a stark departure from the 2-3% range seen in prior quarters, suggesting that either the regulatory framework is not providing adequate returns or that significant impairments have hit the equity base. Even the trailing average ROE of approximately 1% is well below the cost of equity, implying that the company is not earning its allowed return, which may pressure the stock's valuation. Investors should monitor whether this is a temporary blip or a structural deterioration in the regulatory compact.
Operating Margin Volatility Masks Cost Pressures
Operating margin swung from 14.9% in 2026Q2 to 3.5% in 2025Q2, with interest coverage falling to 1.13x, indicating that cost recovery is failing to keep pace with rising interest and operating costs, as per reported figures.
The wide swings in operating margin suggest that the company is experiencing significant volatility in its cost structure, possibly due to competitive pricing pressures and the high fixed costs of network maintenance. The interest coverage ratio of 1.13x in 2026Q2 is dangerously low, meaning operating income barely covers interest expense, which could constrain financial flexibility. This trend, combined with a net margin of -37.4% in the same quarter, indicates that the company is not effectively recovering its costs through rates, warranting close monitoring of regulatory outcomes.
Leverage Approaches Breaking Point
Debt-to-capital rose to 0.69 in 2026Q2 from 0.63 a year earlier, while FFO/debt fell to 2.72%, indicating deteriorating credit metrics that may limit access to capital, as per balance sheet data.
The debt-to-capital ratio of 69% is at the high end for the sector, and the FFO/debt ratio of 2.72% is well below the 5% threshold typically considered safe for investment-grade utilities. This suggests that the company's cash flow generation is insufficient to service its debt load, which may lead to credit rating downgrades or higher borrowing costs. The equity base has also eroded, falling from $15.8B to $13.3B over the past year, further weakening the balance sheet. Given the need to fund both capex and dividends, the leverage trajectory appears unsustainable without external equity or asset sales.
Dividend Coverage Thin Despite Cash Flow Stability
With a dividend yield of 7.8% and payout ratios exceeding 100% in several quarters, the dividend appears underfunded by earnings, though operating cash flow coverage averaged 3.0x, as per cash flow statements.
The dividend payout ratio relative to net income has been above 100% in multiple quarters, including 141% in 2025Q4 and 189% in 2024Q2, indicating that the company is paying out more than it earns. However, operating cash flow has remained stable, with OCF-to-dividend coverage around 3.0x, suggesting that the dividend is currently funded by cash flow rather than earnings. This discrepancy highlights the gap between GAAP earnings and cash generation, but the high payout ratio and negative net income in 2026Q2 raise concerns about the sustainability of the dividend if cash flow deteriorates. Investors should monitor whether management prioritizes dividend maintenance over debt reduction.
Misapplied P/E Distorts Telus's True Value
The trailing P/E of 18.93 is misleading for Telus because it is distorted by non-cash impairments and the consolidation of TELUS International, obscuring the underlying regulated earnings power, as per financial statement analysis.
Standard P/E analysis fails for Telus because the earnings base is heavily impacted by one-time charges, such as the $1.8B net loss in 2026Q2, and by non-controlling interests from TELUS International, which do not accrue to shareholders. A more appropriate metric is EV/EBITDA, which at 7.83x is more comparable to peers like BCE (6.70x) and AT&T (7.15x), and better reflects the cash-generating ability of the core telecom operations. Additionally, investors should adjust for capitalized labor costs and use FFO/debt to assess leverage, as the reported debt-to-equity of 1.90% is clearly a data error and understates the true leverage. Using a normalized earnings figure or a sum-of-the-parts valuation would provide a clearer picture of Telus's worth.