* Note: Prices are in Million (M) USD.
Description:
BCE Inc. is a leading telecommunications and media company headquartered in Verdun, Quebec, recognized for its robust offerings in wireless, wireline, internet, and television services across Canada. Operating primarily through its subsidiary Bell Canada, BCE boasts an extensive infrastructure and a strong focus on innovation, effectively catering to the needs of diverse residential, commercial, and wholesale clients. As the demand for digital and media services grows, BCE is well-positioned to leverage new opportunities, solidifying its status as a pivotal player in connecting Canadians with superior communication and entertainment solutions.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $510 M
Debt : $37,559 M
EBITDA : $8,139 M
Net Debt (Debt - Cash): $37,049 M
Since EBITDA cannot cover net debt within 3 years, Avoid This Stock.
This criteria used industry in which company operates:
Sector: Technology
Industry: Telephone communications (no radiotelephone)
Based on sector, 5 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 8.83
Since Forward PE Ratio is less than 15, 5 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $2,571 M
Average Revenue: $21,104 M
Revenue Converted To Free Cash Flow (%): 12.2%
Since Free Cash Flow (FCF) to Revenue percentage is less than 15, 1 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $24,409 M
Revenue 5 Years Ago (2019-12-31): $23,964 M
Total Growth over 5 Years: 1.9%
5-Year Revenue CAGR (Historical): 0.4%
Forward 5-Year CAGR (Tapered): 0.3%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $912 M
Share Count 5 Years Ago (2020-12-31): $904 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $2.55
Trailing 12-Month Earnings Per Share (EPS): $2.69
Average Earnings Per Share (EPS): $2.62
Dividend Per Share (DPS): $3
Payout Ratio: 131%
Dividend Yield: 14.40%
⚠️ Caution: Further research is recommended — dividend payout ratio is too high (131%).
Since company Payout Ratio is greater than 50, 1 point assigned.
Since Dividend Yield is greater than 5, 5 points assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: 13.8%
Since Average ROE is between 10 - 20, 3 points assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $23.12
52-Week Low: $19.74
Threshold Price (15% Above 52-Week Low): $22.70
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $22,219 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share) (TTM ending 2025-06-30): $4.18
Owners' Earnings (FCF/Share, latest positive annual) (2024-12-31): $2.81
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 23 points to above BCE Inc (BCE) stock.
Last 16 Years Avg PE
9.04, Fair Value PE
25, Industry Based PE
14, RCFC Based PE
12.18, ROE Based PE
13.81, Risk-Free Anchored PE (25% MoS)
18.2. Based on these 6 values, average assigned is
15.37. Value-Trades has assined P/E value
15.37. An average (Current Year EPS + Next Year EPS) earning per share is
$2.6189.
Fair value using multiple P/Es (blended): $40.26 (PE 15.37 × EPS $2.62)
So the Final Fair Value is: $40.26
Understanding the Value-Trades P/E Blend (click to expand)
▾
What goes into the blended P/E?
- 20-Year Avg P/E — Long-run market baseline; conservative anchor.
- Fair Value P/E — Score-based (cash, debt, sector, etc.).
- Industry P/E — Peer group norm.
- Growth-Based P/E — Uses tapered growth rates, floored at 15.
- RCFC-Based P/E — Maps cash conversion efficiency.
- ROE-Based P/E — Higher ROE supports higher multiples.
- Risk-Free Anchored P/E — Macro floor tied to 10y yield w/ MoS.
How it works
- Extreme values are clamped/filtered (IQR method).
- Anchors (20y avg, RCFC/ROE, risk-free) are always kept if valid.
- Final fair value = min(Blended PE × EPS, Avg PE × EPS).
P/E Reference Summary
Using EPS: $2.62
Using Owners' Earnings (Latest FCF/Share): $4.18
Note: Many highly growing companies reinvest heavily back into the business,
so their Owners' Earnings may appear very low. In such cases, other criteria should
be considered to assess the company’s true worth.
| Source |
P/E Ratio |
Implied Fair Value |
| Market (1 Yr Ago) | 23.53 | $61.62 |
| 16 Yrs Avg-PE | 9.04 | $23.67 |
| Value-Trades Assigned | 15.37 | $40.25 |
| Owners' Earnings × 16 Yrs Avg-PE | 9.04 | $37.79 |
