As of 2025-05-08, the Fair Value of Rogers Communications Inc (RCI.B.TO) is 25.09 CAD. This value is based on the Peter Lynch's Fair Value formula. With the current market price of 35.02 CAD, the upside of Rogers Communications Inc is -28.4%.

Is RCI.B.TO a good investment?

With the market price of 35.02 CAD and our fair value calculation, Rogers Communications Inc (RCI.B.TO) is not a good investment. Investing in RCI.B.TO stocks now will result in a potential loss of 28.4%.

35.02 CAD

Stock Price

25.09 CAD

Fair Price

FAIR VALUE CALCULATION

RCI.B.TO Fair Value

Peter Lynch's formula is:

RCI.B.TO Fair Value

= Earnings Growth Rate x TTM EPS

RCI.B.TO Fair Value

= 7.7 x 3.27

RCI.B.TO Fair Value

= 25.09

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

	12-2020	12-2021	12-2022	12-2023	12-2024	5Y Avg
Net income	1,592	1,558	1,680	849	1,734	1,483
YoY growth	-22.1%	-2.1%	7.8%	-49.5%	104.2%	7.7%

RCI.B.TO Fair Value - Peers Benchmarking

	Market Cap (mil)	EPS	Fair Value	Upside
a
Rogers Communications Inc	18,842	3.3	25.09	-28.4%
T-Mobile US Inc	285,293	10.5	262.41	4.4%
Tele2 AB	99,745	5.6	28.19	-80.4%
Millicom International Cellular SA	5,855	1.5	36.61	7.6%
United States Cellular Corp	5,399	-0.5	-2.29	-103.6%
1&1 Drillisch AG	4,699	1.4	6.95	-73.9%
Telephone and Data Systems Inc	3,693	-0.3	-1.31	-103.8%
VEON Ltd	2,191	-1.6	-7.17	-705%
Turkcell Iletisim Hizmetleri AS	42,100	2.8	14.07	-26.8%
Gogo Inc	996	0.1	0.52	-93.1%
Shenandoah Telecommunications Co	634	3.5	86.76	650.5%

RCI.B.TO Fair Value - Key Data

Market Cap (mil)	18,842
P/E	10.7x
Forward P/E	10.7x

EPS	3.27
Avg earnings growth rate	7.7%
TTM earnings	1,758

RCI.B.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.