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BCE.TO
BCE Inc
Price:  
29.6 
CAD
Volume:  
681,479
Canada | Diversified Telecommunication Services

BCE.TO Fair Value

-93.7 %
Upside

What is the fair value of BCE.TO?

As of 2025-05-03, the Fair Value of BCE Inc (BCE.TO) is 1.87 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 29.6 CAD, the upside of BCE Inc is -93.7%.

Is BCE.TO a good investment?

With the market price of 29.6 CAD and our fair value calculation, BCE Inc (BCE.TO) is not a good investment. Investing in BCE.TO stocks now will result in a potential loss of 93.7%.

29.6 CAD
Stock Price
1.87 CAD
Fair Price
FAIR VALUE CALCULATION

BCE.TO Fair Value

Peter Lynch's formula is:

BCE.TO Fair Value
= Earnings Growth Rate x TTM EPS
BCE.TO Fair Value
= 5 x 0.37
BCE.TO Fair Value
= 1.87

The earnings growth rate we use in the formula is the average growth rate of net income/earnings over the last 5 years. If the average growth rate is smaller than 5%, we set it to 5%. If it is larger than 25%, we set it to 25%. If the TTM EPS is negative, Peter Lynch Fair Value's result can be unreliable.

Historical Earnings
12-202012-202112-202212-202312-20245Y Avg
Net income2,6342,8402,8682,2633442,190
YoY growth-17.5%7.8%1%-21.1%-84.8%-22.9%

BCE.TO Fair Value - Peers Benchmarking

Market Cap (mil)EPS Fair Value Upside
a
AT&T Inc198,6711.641.1949.2%
Verizon Communications Inc184,4084.221.09-51.8%
Swisscom AG28,38629.8148.84-72.8%
Telus Corp31,3730.73.28-84.2%
Telenor ASA214,42013.4334.98113.8%
Telecom Italia SpA7,554-0-1.02-388.9%
IDT Corp1,3233.279.1951%
Cincinnati Bell Inc788-0.1-0.36-102.3%
Consolidated Communications Holdings Inc559-1.6-7.89-267.1%
ATN International Inc248-1.7-8.54-153.2%

BCE.TO Fair Value - Key Data

Market Cap (mil)27,286
P/E79.3x
Forward P/E37.3x
EPS0.37
Avg earnings growth rate-22.9%
TTM earnings344

BCE.TO Fair Value - Formula's Origin

Peter Lynch is one of the most legendary investors/fund managers of all time. His philosophy for stock investing is very simple and straightforward: he invests in stocks that are undervalued, meaning its P/E is less than or equal to its earnings growth rate. He believes that if a stock is trading at its fair value, the PEG ratio, which was also invented by him, should be 1.

Therefore, his formula to determine a company's fair value is:

Peter Lynch Fair Value = Earnings Growth Rate * EPS * PEG

PEG is set to 1 so we can ignore it in the calculation. Based on the formula, if the earnings growth rate of a company is 15%, Peter Lynch is willing to buy its share up to P/E = 15.