BCE Inc. (BCE)
Valuation Overview•Is BCE Inc. Overvalued or Undervalued?
Trading at a discount across both intrinsic cash flow and relative peer multiples, indicating a strong margin of safety.
Moderate quality score of 61/100, reflecting stable operating margins and manageable leverage.
Analysts remain bullish, forecasting further upside expansion with consensus targets suggesting solid gains.
Verdict: Solid fundamental quality, though solvency presents a headwind.
Wall Street is broadly bullish, projecting solid upside. This outlook is strongly supported by highly attractive capital returns, anchored by a strong, well-covered dividend yield.
BCE demonstrates strong business quality with robust profitability and healthy margins. However, the balance sheet carries elevated leverage, requiring careful monitoring of debt servicing capabilities.
The company exhibits steady, low-single-digit revenue growth paired with highly explosive earnings growth (31.5% EPS 3Y CAGR). This growth is supported by elite operational efficiency, sustaining an impressive 43.4% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $6.2B | +0.2% | +0.4% | +1.3% | +1.3% | |
| EBITDA | $2.6B | — | +1.5% | — | — | |
| Net Income | $654.7M | +1777.9% | +31.1% | — | +9.2% | |
| EPS (Diluted) | $0.66 | +3666.7% | +31.5% | +21.8% | +8.6% | |
| Free Cash Flow | $308.8M | +28.6% | +11.4% | -1.0% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 34.6% | 55.7% | 60.9% | 55.9% |
| Operating Margin | 43.4% | 22.4% | 22.5% | 23.1% |
| Net Margin | 25.4% | 12.3% | 12.2% | 12.5% |
| FCF Margin | 11.2% | 12.3% | 10.3% | 13.0% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.42 | $0.46 | +9.5% | ||
| Q1'26 | $0.45 | $0.49 | +8.9% | ||
| Q4'25 | $0.52 | $0.57 | +9.6% | ||
| Q3'25 | $0.52 | $0.46 | -11.5% | ||
| Q2'25 | $0.44 | $0.48 | +9.1% | ||
| Q1'25 | $0.52 | $0.56 | +7.7% | ||
| Q4'24 | $0.57 | $0.55 | -3.5% | ||
| Q3'24 | $0.59 | $0.57 | -3.4% |
Total return is +12.6% (1Y), lagging the benchmark by -12.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +1.1% | -8.2% | — |
| 1Y | +12.6% | -12.4% | +5.8% |
| 3YCAGR | -12.8% | -32.4% | +14.6% |
| 5YCAGR | -6.2% | -18.9% | +25.0% |
| 10YCAGR | +0.3% | -13.2% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about BCE Inc. (BCE) valuation, health, and returns.
BCE Inc. is estimated to be undervalued under our discounted cash flow framework. relative multiples indicate the stock is Cheap versus peers compared to industry peers. undervalued (implying +163.2% upside to DCF intrinsic value of $61.28)
BCE Inc. has multiple valuation anchors: DCF Intrinsic Value: $61.28 | Peer Relative Fair Value: $64.70 | Wall Street Analyst Target: $26.00 (implying +11.7% upside). A convergence of these signals offers higher conviction.
BCE Inc. displays good financial health with a composite quality score of 61/100, supported by a Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 6.9%.
BCE Inc. pays a 7.1% dividend yield, covered by a 34% payout ratio with 0 years of growth, supplemented by a 0.7% buyback yield.
BCE Inc.'s current growth trajectory is Stable. The company achieved +0.2% 1Y revenue growth and +3666.7% 1Y EPS growth, compared to its 3Y revenue CAGR of +0.4%.
Wall Street consensus is Hold based on 21 analysts, beating EPS expectations in 50% of recent quarters with a 3-quarter streak. The consensus price target represents a +11.7% change from current levels.
Investment risks for BCE Inc. include: -13.4% 1-year max drawdown. Volatility risk is characterized by a beta of -0.11x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.