Q: What is the best metric(s) to use to value Telus, and how does that / those metrics compare to the past historic range(s) ? If it is P/E, then I find it hard to justify buying today at what appears to be approximately 24X.
5i Research Answer:
P/E is still likely the best metric, in that most analysts will reference this first. It is higher than average. On price/cash flow there is more stability. Historical average is about 7.5X, now T is about 8.2. EPS is expected to dip this year. The P/E likely reflects a shift of investors to 'safety' after a difficult period in the market.