BCE Inc. (BCE)
NEUTRALFundamental
69
Price
$23.71
Market Cap
$22.21B
Part 1 · What the company is worth
Overview
BCE is Canada's largest communications company, operating under the Bell brand. It builds and runs the wireless, broadband internet, television and landline networks that connect most of the country, selling access to households, businesses and government agencies. Through Bell Media it also owns television channels such as CTV, radio stations and sports media rights. Its assets are physical: towers, fibre and copper lines, satellites and studios built up over decades, expensive and slow for a new entrant to replicate at national scale.
How it makes money
Most revenue is recurring: subscribers pay monthly for wireless, internet, television and phone service under contracts, so a customer signed up this year keeps paying next year too. Bell Media adds advertising and subscription fees from its channels. Because the networks already exist, serving one more subscriber costs relatively little, but keeping fibre, 5G and satellite infrastructure current requires continuous heavy capital spending, funded largely from the steady cash that existing subscribers generate every month.
Revenue by segment
Wireless, internet, television and landline services sold to consumers and businesses across Canada, plus related equipment and device sales.
Television networks including CTV, radio stations, and the advertising and subscription revenue generated by Bell's media properties.
What drives demand
DefensiveCommunication services are close to a household necessity, so subscriber numbers move slowly regardless of the economic cycle, and long contracts create friction against switching providers. But growth is capped: nearly every Canadian household already has a phone and an internet connection, so gains must come from price increases, new services such as streaming bundles, or taking share from Rogers and Telus, not from a naturally expanding market.
The case for
Buyers argue that Bell's networks are costly and slow for a rival to duplicate, that most revenue is contractual and recurring, and that the dividend is supported by predictable cash flow from services households rarely cancel.
The case against
Sellers worry that a saturated, three-player Canadian market leaves little room to add subscribers, that price competition among Bell, Rogers and Telus pressures margins, and that heavy annual spending on fibre and wireless networks limits free cash flow even as the dividend payout stays high.
Written by the editors, published on August 18, 2026
Direct competitors
Who this company fights with for the same customers
No editorial profile for this company yet
No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$24.80B
Trailing 12 months (through 6/30/2026)
Net Income
$6.42B
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$2.60B
Total Equity
$14.99B
Total Liabilities
$41.78B
Current Ratio
0.73
Interest Coverage
-
Debt/EBITDA
4.80
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$83.74
Current Price
$23.71
Margin of Safety
+71.7%
Fair Value Range
$54.43 - $113.05
Estimation Methods
Valuation Metrics
P/E Ratio
4.88
ROE
30.5%
P/B Ratio
1.48
P/FCF
8.53
Gross Margin
44.9%
ROIC
7.6%
Profitability Radar
Value Creation (Economic Moat)
ROIC
7.6%
WACC
3.4%
ROIC − WACC
+4.3 pp
ROIC exceeds the cost of capital — the company is creating value for shareholders.
Fundamental Analysis Criteria
Passed (13)
- ROIC 7.6%
- Gross Margin 44.9%
- P/FCF 8.53
- P/B Ratio 1.48
- Debt/Equity ratio
- Positive Free Cash Flow
- Debt/EBITDA
- DCF valuation (Undervalued)
- ROE 27.7%
- Earnings Surprise avg 7.0%
- PEG Ratio 0.25
- Earnings Quality (OCF/NI) 1.08
- Net Margin Trend 25.8% vs 0.7%
Failed (6)
- Price CAGR -5.83%
- CapEx intensity
- Current Ratio
- Revenue Growth 5Y 1.4%
- Analyst Consensus 48% Buy
- Piotroski F-Score 2/9
Unavailable (8)
- EPS data insufficient
- Dividend Payout NaN%
- Operating Margin NaN%
- Interest Coverage
- Return on Tangible Assets
- Low reliance on intangibles
- Price below Graham Number
- Share Dilution (missing shares data)
Piotroski F-Score
Serious financial concerns
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Buying back shares. Shareholder friendly
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Mirko Bibic | CEO, President & Director | 57 |
| Mr. Curtis Millen | Executive VP & CFO | - |
| Mr. John Watson | Group President of Business Markets, AI & Ateko | 61 |
| Mr. Blaik Kirby | Group President of Consumer & Small Business | - |
| Mr. Sean H. Cohan | President of Bell Media | 49 |
| Mr. Mark McDonald | Executive VP & CTO | - |
| Ms. Hadeer Hassaan | Executive VP and Chief Information & Customer Experience Officer | - |
| Mr. Krishna Somers | Senior Vice President of Investor Relations | - |
| Mr. Robert Malcolmson | Executive VP and Chief Legal & Regulatory Officer | - |
| Ms. Karine Moses | Senior VP of Sales & Vice Chair of Québec | - |
Audit Risk
4
Board Risk
4
Compensation Risk
2
Shareholder Rights Risk
7
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Latest News
Recent headlines for BCE, sourced from Markets Gazette.
- 6/15/2026NEGATIVECanada’s BCE Cuts 1% of Jobs as It Focuses on AI, Network Build
BCE Inc., a major Canadian telecommunications firm, announced plans to cut approximately 1% of its workforce, impacting hundreds of employees. This move is part of a strategic shift to reduce operational costs and reallocate resources towards significant investments in its US-based internet infrastructure and artificial intelligence initiatives. While the company aims to streamline operations and position itself for future growth in AI and network development, the immediate impact involves job losses and potential short-term disruption. Investors will monitor the effectiveness of these strategic investments and their impact on future profitability.
- 5/7/2026POSITIVEBCE Beats on AI-Powered Business, Higher Revenue
BCE Inc. reported first-quarter results that surpassed analyst forecasts, driven by its strategic investments in artificial intelligence infrastructure. The company's AI-powered business initiatives have begun to yield significant returns, contributing to higher overall revenue. This performance indicates a successful pivot towards advanced technologies, positioning BCE for future growth and potentially enhancing its competitive edge in the telecommunications sector. Investors may view this as a strong indicator of management's foresight and execution capabilities.
via Markets Gazette