TELUS Stock: A 62% Discount to Intrinsic Value in 2025 - What Investors Should Know

TELUS stock has risen 5.1% in the last month and 15.3% year-to-date, despite a 8.2% dip over the last three years. The company has delivered a 25.4% return over five years, thanks to ongoing investments in infrastructure and steady customer growth. TELUS scores 2 out of 6 on our undervaluation score, suggesting it is modestly underpriced based on common measures. However, a more nuanced approach may reveal a different potential for the stock.

Title: TELUS Stock: Recent Performance and Analyst Sentiment

TELUS Corporation (TSE:T - Get Free Report) has seen significant price movements in recent months, with the stock rising 5.1% in the last month and 15.3% year-to-date, despite an 8.2% dip over the last three years. The company's performance over five years has been robust, delivering a 25.4% return, largely driven by investments in infrastructure and steady customer growth [1].

On July 2, 2025, TELUS shares crossed above their 200-day moving average, trading as high as C$23.07, signaling potential bullish momentum. Analysts have set various price targets for TELUS, with Scotiabank offering a target of C$24.50 and a general consensus rating of "Hold" among analysts [1]. This move is notable as it suggests that analysts are cautiously optimistic about the company's prospects.

TELUS recently announced a quarterly dividend increase to $0.4163, resulting in an annualized yield of 7.3%. This increase, despite a high dividend payout ratio of 253.11%, indicates the company's commitment to shareholder returns [1]. However, the high payout ratio suggests that TELUS may be at risk of reducing dividends in the future if its financial performance does not improve.

The Canadian telecom sector has undergone significant changes, including the introduction of Mobile Virtual Network Operator (MVNO) rules by the telecom regulator. Telus Corporation has continued to pay investors every three months and increase the amount by 3.5% every six months without fail, despite these regulatory changes [3]. This consistency in dividend payments reflects the company's financial stability and commitment to shareholders.

Investors should also consider TELUS International (NYSE:TIXT), a technology company specializing in customer experience solutions and AI-enabled services. In April 2025, InvestingPro’s Fair Value models identified a significant mispricing opportunity in TIXT, leading to a remarkable 63% return for investors who followed the analysis [2]. This success story demonstrates the power of combining fundamental analysis with advanced valuation methodologies to uncover market inefficiencies.

In conclusion, while TELUS stock has shown promising performance recently, investors should remain cautious due to the high dividend payout ratio and potential regulatory challenges. A more nuanced approach to valuation may reveal a different potential for the stock. Analyst sentiment is cautiously optimistic, with several firms maintaining bullish price targets. However, the company's high dividend payout ratio and the impact of regulatory changes on its business model should be closely monitored.

References:
1. [MarketBeat](https://www.marketbeat.com/instant-alerts/telus-tset-stock-passes-above-two-hundred-day-moving-average-time-to-sell-2025-08-22/)
2. [Investing.com](https://www.investing.com/news/investment-ideas/telus-international-soars-63-following-investingpros-april-fair-value-alert-93CH-4210633)
3. [The Fool](https://www.fool.ca/2025/08/25/telus-pays-investors-every-3-months-without-fail/)