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Is Quebecor (TSX:QBR.A) Undervalued As Its Share Price Tests A Richer P/E?

Simply Wall St · 1d ago

Quebecor at a glance

Quebecor (TSX:QBR.A) has drawn fresh attention after recent share price moves, with the stock last closing at CA$64.44 and recording a 1 day return of 3.57%.

Short term performance has been mixed, with the share price up over the past week and month, but lower over the past 3 months.

The recent 3.57% 1 day share price return sits on top of a 22.28% year to date share price gain, while Quebecor’s 1 year total shareholder return of 54.89% and 5 year total shareholder return of 150.41% point to momentum that has been building rather than fading.

Scan beyond Quebecor’s recent run and line up other potential momentum plays using the curated 6 high quality undervalued stocks that share a mix of quality fundamentals and mispriced expectations.

After this kind of surge and a reported intrinsic discount of about 64%, Quebecor starts to look like either a catch up story or a stretched one. Does the current price still offer an attractive trade off between risk and potential reward?

Price-to-Earnings of 15.3x: Is it justified for Quebecor?

Quebecor trades on a P/E of 15.3x, which leaves the stock looking expensive against some benchmarks even after the recent share price strength to CA$64.44.

The P/E ratio compares the current share price to earnings per share. For a telecom and media group like Quebecor, this metric shows how much investors are paying today for each unit of current earnings.

Based on earnings forecast to grow 7.8% per year and revenue projected to rise 2.6% annually, the valuation suggests the market is paying a relatively full price for a moderate growth profile. That point is reinforced by the estimated Fair P/E of 9.8x, which is meaningfully lower than the current 15.3x and indicates a level the market could move towards if sentiment cools.

The contrast becomes sharper when set against peers. Quebecor trades at 15.3x earnings, which is slightly below the Global Telecom industry average of 16x, yet materially above the peer group average of 8.4x. This implies investors are assigning a premium that smaller or cheaper rivals do not receive.

Explore the SWS fair ratio for Quebecor.

Result: Price-to-Earnings of 15.3x (OVERVALUED)

Still, Quebecor faces real pressure points if higher capital needs or weaker media and sports earnings start to chip away at that perceived valuation cushion.

Find out about the key risks to this Quebecor narrative.

Another view of Quebecor using cash flows

On earnings, Quebecor screens as expensive, yet the SWS DCF model paints a very different picture. At CA$64.44 per share against an estimated future cash flow value of CA$181.33, the framework signals a wide undervaluation. That kind of gap raises a simple question: Which lens do you trust more?

Look into how the SWS DCF model arrives at its fair value.

QBR.A Discounted Cash Flow as at Sep 2026
QBR.A Discounted Cash Flow as at Sep 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Quebecor for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 6 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

Mixed signals around Quebecor can feel confusing, so move quickly, review the full set of risks and rewards, and shape your own stance with the 4 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.