Posted 1/21/2024, 1:28:30 PM
TELUS International's High P/E Ratio Defended By Expected Earnings Rebound
- TELUS International's high P/E ratio of 54.1x suggests its share price may be overvalued compared to the market average P/E of below 16x
- Its earnings have been falling quickly, with a 73% decrease last year and a 68% total decrease over 3 years
- Analysts forecast strong 63% earnings growth next year, which helps justify the high P/E ratio
- Investors likely expect this strong growth will continue, supporting the current high share price
- The potential for earnings deterioration seems low right now, making a share price drop unlikely in the near future