Why TELUS’ SmartEnergy for Good launch matters for shareholders
The recent expansion of TELUS (TSX:T) Connecting for Good program to include SmartEnergy for Good in Ontario gives investors a fresh data point on how the company ties telecom infrastructure to energy management and community initiatives.
See our latest analysis for TELUS.
TELUS shares recently closed at CA$17.47, with a 30 day share price return of 6% decline and a year to date share price return of 2.9% decline. The 3 year total shareholder return of 23.4% decline points to momentum that has been fading over a longer stretch despite product updates like SmartEnergy for Good and ongoing AI and data services activity.
If TELUS’ mix of connectivity, energy management, and AI tools interests you, it can be useful to see what else is out there in growth oriented infrastructure and automation names, starting with 30 power grid technology and infrastructure stocks
With TELUS trading at CA$17.47, sitting at a discount to a CA$21.00 analyst target and an intrinsic value estimate implying roughly a 61% gap, you have to ask: is this genuine mispricing, or is future growth already baked in?
Most Popular Narrative: 17% Undervalued
With TELUS last closing at CA$17.47 against a fair value narrative of CA$21.00, the current price sits below what this widely followed storyline implies.
Deployment and commercialization of next-generation technologies including AI powered customer experience platforms, data center assets for “sovereign AI” infrastructure, and private 5G position TELUS to create new revenue streams, lower cost-to-serve, and enhance its competitive moat, translating into higher future earnings and margin improvements.
Read the complete narrative.
Curious what kind of revenue mix, margin lift, and earnings trajectory would need to materialize to justify that premium setup? The narrative leans on steady top line growth, a clear margin step up, and a richer profit multiple than the broader telecom space. The exact combination of those three is what underpins the CA$21.00 fair value.
Result: Fair Value of CA$21.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, investors still need to watch for high capital requirements and regulatory decisions that could pressure margins and challenge the current 17% undervalued narrative.
Find out about the key risks to this TELUS narrative.
Another View: What Earnings Multiples Are Saying
The earlier narrative leans on a discounted cash flow style fair value, but TELUS trades on a P/E of 24.5x versus a fair ratio of 10.4x and a Canadian peer average of 9.2x. That is a sizeable premium, so is the story strong enough to justify paying that much for each dollar of earnings?
See what the numbers say about this price — find out in our valuation breakdown.
TSX:T P/E Ratio as at Apr 2026
Next Steps
With the story pulling in different directions, are you comfortable with how the trade off between risk and reward looks for TELUS today? Take a closer look at the 4 key rewards and 3 important warning signs
Looking for more investment ideas?
If TELUS is on your radar, do not stop there. The right mix of quality, income, and resilience often comes from comparing several strong candidates side by side.
This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we’re here to simplify it.
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