Stock fact sheet · data as of
TELUS Corporation (TU): fair value, margin of safety and Wheel Score
Ticker symbol TU · Communication Services · Telecommunications Services · Canada · Speculative Income
Is TU undervalued?
TU has a margin of safety of 58%: the stock closed at 9.22 on 5 Nov 2026 against a GLS average fair value of 21.87. 3 of the 3 valuation models that produced a number sit above the price. Our scans treat a discount this large as a strong starting point for a cash-secured put, not as a verdict - the fair value is a model output, and a wide gap can mean the models are missing something the market knows.
The average is built from just 3 models (DCF, 10 Cap, DDM) - the rest returned nothing because an input they need (dividends, free cash flow, book value) is zero or negative - so treat it with more caution than usual.
The nightly engine files TU under Speculative - it is losing money or its Piotroski health score is 3 or lower - which caps its Wheel Score at 45 and keeps it out of the Sunday Scan. It also carries the Income tag (Income = a dividend yield of 4% or more).
Nine valuation models for TU
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 22.92 | +149% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | - | - | The most a defensive investor pays for the earnings and book value per share; no value tonight |
| Graham Growth | - | - | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields; no value tonight |
| Lynch | - | - | EPS × the earnings growth rate (PEG of 1), growth capped at 25%; no value tonight |
| GLS Growth | - | - | EPS compounded ten years at the blended growth rate, discounted back at 15% a year; no value tonight |
| 10 Cap | 27.85 | +202% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 14.84 | +61% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | - | - | Earnings power value: current EPS capitalised at 9% with no growth; no value tonight |
| Zombie (liquidation) | -15.79 | -271% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 10.00 | +8% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
TELUS Corporation scores only 4 of 9 on the Piotroski F-score, which fails the "Piotroski 6 or more" Wheel Trade Filter. A reading this low means several of the basic tests - positive earnings, positive operating cash flow, falling debt, no new share issuance - are not met. A GLS Moat score of 4.5/10 is a weak reading: the accounts do not show returns and margins that competitors have been unable to wear down, so the Moat part of the Wheel Score contributes little.
Returns on capital are thin or negative - ROIC 2.4%, ROE 7.1%, ROA 1.9% - with debt at 1.99 times equity and a free-cash-flow yield of 9.3%.
The dividend yield is high at 10.94% (payout ratio -171%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual.
Institutional ownership scores 5/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 4 / 9 | ROIC | 2.4% |
|---|---|---|---|
| GLS Moat | 4.5 / 10 | ROE | 7.1% |
| Debt / equity | 1.99 | ROA | 1.9% |
| Free-cash-flow yield | 9.3% | Payout ratio | -171% |
| Institutions | 5 / 10 | Insiders · Congress | 5 · 5 / 10 |
Wheel Score 43: Weak
With a Wheel Score of 43 TELUS Corporation sits in the Weak band. It fails filter 1, options that actually trade - options too quiet (3,173 open interest, 81 a day); and filter 2, a real business, not a gamble - speculative (a loss, or a weak Piotroski score); and filter 4, financially healthy - Piotroski 4/9 (under 6); and filter 5, can repay its debt - 5.1 years to repay its debt (over 3); and filter 6, no serious red flags - Red Flags score 52 (under 60); Red Flags (weak) is its weakest part.
Implied volatility is 47% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is 3,173 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 8.2M shares a day on a market cap of $14.5B, with a beta of 0.66 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (3,173 open interest, 81 a day) |
| 2 | A real business, not a gamble | Fails | speculative (a loss, or a weak Piotroski score) |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Fails | Piotroski 4/9 (under 6) |
| 5 | Can repay its debt | Fails | 5.1 years to repay its debt (over 3) |
| 6 | No serious red flags | Fails | Red Flags score 52 (under 60) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 58% below fair value | |
| Premium | Strong | implied volatility 47% | |
| Moat | Fair | moat 4.5/10 | |
| Health | Fair | Piotroski 4/9 | |
| Red Flags | Weak | Red Flags score 52/100 | |
| Option trading | Weak | 81 contracts a day, 3,173 open interest | |
| Stability | Good | beta 0.66, $14.5B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
TELUS Corporation reports earnings on 6 Nov 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
No analyst upgrades or downgrades were recorded in the last 30 days.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Telecommunications Services
The 12 companies below are the closest to TELUS Corporation by market cap within the Telecommunications Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| ASTS AST SpaceMobile, Inc. | 35.62 | - | - | 16Weak | $14.5B |
| ECHO EchoStar Corporation | 98.62 | 274.75 | +64% | 50Fair | $15.6B |
| CCZ Comcast Holdings Corp. | 63.41 | 217.35 | +71% | 38No options | $15.8B |
| CHTR Charter Communications, Inc. | 120.25 | 1,121.42 | +89% | 47Weak | $16.2B |
| TIGO Millicom International Cellular S.A. | 77.09 | 162.98 | +53% | 45Weak | $12.9B |
| SKM SK Telecom Co.,Ltd | 31.29 | 43.94 | +29% | 85Prime | $12.0B |
| VIV Telefônica Brasil S.A. | 11.31 | 19.62 | +42% | 40Weak | $18.1B |
| RCI Rogers Communications Inc. | 34.61 | 93.84 | +63% | 46Weak | $18.7B |
| GSAT Globalstar, Inc. | 84.58 | 47.18 | -79% | 24Weak | $11.0B |
| BCE BCE Inc. | 21.11 | 66.44 | +68% | 52Fair | $19.7B |
| TMUSI T-Mobile USA Inc 5.5 % Notes 2025-01.06.70 | 18.40 | 127.30 | +86% | 28No options | $19.7B |
| TLK Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | 10.75 | 23.82 | +55% | 40No options | $10.6B |
⚖ Compare TU with 7 of them All Communication Services stocks →
Scan the whole market the same way
A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the top 10 stocks that pass all 9 Wheel Trade Filters, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about TU
Is TU undervalued right now?
By the GLS models, yes: at 9.22 the stock is 58% below the average fair value of 21.87 (data as of 5 Nov 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of TU and what does it mean?
TU scores 43 out of 100 (Weak) - it fails Wheel Trade Filters 1, 2, 4, 5, 6. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for TU?
21.87 per share as of 5 Nov 2026 - the simple average of the 3 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does TELUS Corporation report earnings next?
The next earnings report is due on 6 Nov 2026 (before the open), 1 days from the data date of 5 Nov 2026. The Calendars page lists every upcoming report with its time of day.
Does TU have listed options, and how liquid are they?
Yes. The nightly snapshot found 12 listed contracts with 3,173 open interest across all expiries and implied volatility of 47% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.