BCE
BCE Inc.
$19.74
Stable Earnings Power
40%
P/Adj-EPS × Normalized Multiple
Strong
·
Conviction
Undervalued
Trading 72.4% below fair value
You pay
$19.74
Bear
$57.25
Fair
$71.57
Bull
$85.88
Bear
$57.25
+190.0%
$4.77 × 12x P/E
Fair
$71.57
+262.5%
$4.77 × 15x P/E
Bull
$85.88
+335.1%
$4.77 × 18x P/E
Adjust Assumptions
15.0x
4.77$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
4.1x
Analyst Consensus (External Reference)
Never blended into the bear/base/bull estimates above.
Average Target (21 analysts)
$25.00
Divergence from AlphaVal
186%
Summary
Applying a 15x P/E to adjusted EPS of $4.77, the base-case value is $71.57 per share.
Warnings
Wall Street's average price target is $25.00 (from 21 analysts). Our estimate is 186% above the consensus -- consider that gap carefully.
Financial statements were converted from CAD into USD using USDCAD at 0.7037 USD per CAD.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples