sept why pe ratio is not reliable to measure stock value
When evaluating a stock's
value or potential without relying on the Price-to-Earnings (P/E) ratio,
several alternative metrics and approaches offer valuable insights. The P/E
ratio, while widely used, can be misleading for companies with inconsistent earnings,
high growth, or those in early stages of development. Therefore, exploring
other fundamental and qualitative factors becomes crucial for a comprehensive
assessment.
According to www.iAsk.Ai
- Ask AI:
One of the primary
alternatives to the P/E ratio is the Price-to-Sales (P/S) ratio.
This metric compares a company's market capitalization to its total revenue
over the past 12 months. It's particularly useful for companies that are not
yet profitable or have highly volatile earnings, as sales tend to be more
stable than earnings. A lower P/S ratio generally indicates a more attractive
valuation. For instance, a company with strong revenue growth but negative
earnings might appear overvalued by P/E but reasonably priced by P/S,
especially if it's reinvesting heavily for future growth.[1] Another
widely used metric is the Price-to-Book (P/B) ratio,
which compares a company's market price to its book value per share. Book value
represents the net asset value of a company (assets minus liabilities). The P/B
ratio is particularly relevant for financial institutions and companies with
significant tangible assets, as it provides an indication of how much investors
are willing to pay for each dollar of a company's assets. A P/B ratio below 1
might suggest the stock is undervalued, while a high P/B ratio could indicate
overvaluation or strong intangible assets not captured on the balance sheet.[2]
Beyond these ratio-based
approaches, Discounted Cash Flow (DCF) analysis is
a robust method for intrinsic valuation. DCF estimates the present value of a
company's projected future free cash flows. This method requires forecasting a
company's revenues, expenses, and capital expenditures for several years into
the future, and then discounting these cash flows back to the present using a
discount rate (often the Weighted Average Cost of Capital - WACC). The sum of
these discounted cash flows, plus the present value of the terminal value
(representing cash flows beyond the explicit forecast period), provides an
estimated intrinsic value per share. DCF is considered a more fundamental
approach as it directly values the cash-generating ability of a business,
making it less susceptible to accounting distortions that can affect earnings.[3] Another
important consideration is Enterprise Value to EBITDA (EV/EBITDA).
This ratio compares a company's enterprise value (market capitalization plus
net debt) to its earnings before interest, taxes, depreciation, and amortization.
EV/EBITDA is often preferred over P/E for comparing companies with different
capital structures or depreciation policies, as it removes the impact of these
non-operating factors. It's particularly useful in industries with high capital
expenditures or significant debt levels.[4]
Qualitative factors also
play a significant role in assessing a stock's potential. These include management
quality and corporate governance, which encompass the
experience, integrity, and strategic vision of the leadership team, as well as
the effectiveness of the board of directors and shareholder rights. Strong
management can navigate challenges, innovate, and execute strategies
effectively, leading to long-term
value creation.[5] Competitive
advantages (moats), such as strong brand recognition,
proprietary technology, network effects, or cost advantages, provide a company
with sustainable profitability and market share. Companies with durable moats
are often more resilient to economic downturns and competitive pressures.[6] Furthermore, industry
growth prospects and market trends are crucial. Investing
in companies operating in growing industries with favorable long-term trends
can significantly enhance a stock's potential. Understanding the regulatory
environment, technological advancements, and consumer preferences within an
industry helps in assessing future opportunities and risks.[7] Finally, dividend
yield and dividend growth can be important for
income-focused investors. While not directly indicating value, a consistent and
growing dividend stream can signal financial health and a commitment to
returning value to shareholders, especially for mature companies.[8]
Performing a
comprehensive Discounted Cash Flow (DCF) analysis for Rogers Communications
requires a multi-step approach, considering its financial statements, industry
outlook, and future growth prospects. As of September 4, 2025, we'll leverage
the most recent available data and projections.
According to
www.iAsk.Ai - Ask AI:
A DCF analysis
estimates the value of an investment based on its projected future cash flows.
The core principle is that an asset's value is the present value of its
expected future cash flows, discounted at a rate that reflects the riskiness of
those cash flows. For Rogers Communications, this involves forecasting free
cash flow to firm (FCFF) or free cash flow to equity (FCFE) for a projection
period, estimating a terminal value, and then discounting these values back to
the present using an appropriate discount rate, typically the Weighted Average
Cost of Capital (WACC).
1. Forecasting Free Cash Flow (FCF)
The first step is to project Rogers Communications' free cash flow for a
discrete projection period, typically 5 to 10 years. For this analysis, we will
use a 5-year projection period (2025-2029). Free Cash Flow to Firm (FCFF) is
often preferred for valuation as it represents the cash flow available to all
capital providers (debt and equity holders).
The formula for
FCFF
is: FCFF=EBIT*(1−TaxRate)+Depreciation&Amortization−CapitalExpenditures−ChangeinNetWorkingCapital
Alternatively, it
can be calculated
as: FCFF=NetIncome+Non−CashCharges−CapitalExpenditures−ChangeinNetWorkingCapital+InterestExpense*(1−TaxRate)
Key assumptions for forecasting FCFF
for Rogers Communications (2025-2029):
·
Revenue Growth: Rogers Communications has shown
consistent revenue growth, driven by its wireless, cable, and media segments.
We'll project a moderate growth rate, considering market saturation and
competitive pressures. Based on recent analyst reports and industry trends,
we'll assume an average annual revenue growth rate of 3.5% for 2025-2027, slowing to 2.5% for 2028-2029.[1]
·
EBIT Margin: We'll assume a stable EBIT
margin, reflecting operational efficiencies and cost management. Based on
historical performance and industry averages, we'll project an average EBIT
margin of 25%.[2]
·
Tax Rate: We'll use the effective
corporate tax rate for Canada, which is approximately 26.5% (federal and provincial combined).[3]
·
Depreciation & Amortization (D&A): D&A is
typically a percentage of revenue or capital expenditures. We'll estimate
D&A as 15% of revenue.[4]
·
Capital Expenditures (CapEx): Rogers
Communications has significant CapEx requirements for network upgrades (5G
rollout, fiber expansion) and maintenance. We'll project CapEx as 18% of revenue.[5]
·
Change in Net Working Capital (NWC): NWC changes
are often small for mature companies like Rogers. We'll assume NWC as 2% of the change in revenue.[6]
Projected FCFF (Illustrative, in
millions of CAD):
|
Year |
Revenue |
EBIT |
Tax |
NOPAT |
D&A |
CapEx |
Change in NWC |
FCFF |
|
2024 (Actual) |
18,500 |
4,625 |
1,226 |
3,399 |
2,775 |
3,330 |
100 |
2,744 |
|
2025 |
19,148 |
4,787 |
1,269 |
3,518 |
2,872 |
3,447 |
129 |
2,814 |
|
2026 |
19,817 |
4,954 |
1,313 |
3,641 |
2,973 |
3,567 |
133 |
2,914 |
|
2027 |
20,510 |
5,128 |
1,360 |
3,768 |
3,077 |
3,692 |
137 |
3,016 |
|
2028 |
21,023 |
5,256 |
1,393 |
3,863 |
3,153 |
3,784 |
103 |
3,130 |
|
2029 |
21,549 |
5,387 |
1,428 |
3,959 |
3,232 |
3,879 |
106 |
3,186 |
Note: 2024 figures are illustrative
based on recent financial reports and analyst consensus for the full year.
2. Calculating the Discount Rate (WACC)
The Weighted Average Cost of Capital (WACC) is used to discount the
projected free cash flows. It represents the average rate of return a company
expects to pay to its capital providers (debt and equity).
The formula for
WACC is: WACC=(E/V)*Re+(D/V)*Rd*(1−TaxRate) Where:
·
E = Market value of equity
·
D = Market value of debt
·
V = Total market value of equity and debt (E+D)
·
Re = Cost of equity
·
Rd = Cost of debt
·
TaxRate = Corporate tax rate
Key assumptions for WACC for Rogers
Communications:
·
Cost of Equity (Re): We use the
Capital Asset Pricing Model (CAPM) to estimate the cost of
equity: Re=Risk−FreeRate+Beta*EquityRiskPremium
·
Risk-Free Rate: We'll use the current yield on
a 10-year Canadian government bond, which is approximately 3.2% as of September 2025.[7]
·
Beta: Rogers Communications'
unlevered beta is estimated to be around 0.75. Levering it up with its current
debt-to-equity ratio, we estimate a levered beta of 0.95.[8]
·
Equity Risk Premium (ERP): A commonly
used ERP for Canada is 5.5%.[9]
·
Therefore, Re=3.2%+0.95*5.5%=3.2%+5.225%=<b>8.425%</b>
·
Cost of Debt (Rd): This is the
effective interest rate Rogers pays on its debt. Based on recent bond yields
and credit ratings for Rogers, we estimate the pre-tax cost of debt to be
approximately 5.0%.[10]
·
Market Value of Equity (E): As of
September 4, 2025, Rogers Communications' market capitalization is
approximately CAD 32 billion.[11]
·
Market Value of Debt (D): Rogers
Communications' total debt (long-term and short-term) is approximately CAD 28 billion.[12]
·
Total Value (V): E+D=32billion+28billion=<b>CAD60billion</b>
·
Tax Rate: 26.5% (as used
in FCFF calculation).
WACC Calculation: WACC=(32/60)*8.425%+(28/60)*5.0%*(1−0.265) WACC=0.5333*8.425%+0.4667*5.0%*0.735 WACC=4.49%+0.4667*3.675% WACC=4.49%+1.71% WACC=<b>6.20%</b>
3. Calculating Terminal Value (TV)
The terminal value represents the present value of all free cash flows
beyond the explicit projection period. It's typically calculated using the
Gordon Growth Model (GGM) or a multiple approach. We will use the GGM.
The formula for
Terminal Value (TV) using GGM
is: TV=FCFFlastprojectedyear*(1+g)/(WACC−g) Where:
·
FCFFlastprojectedyear = Free cash flow in the last year of the
projection period (2029)
·
g = Perpetual growth rate of FCFF
·
WACC = Weighted Average Cost of Capital
Key assumptions for Terminal Value:
·
Perpetual Growth Rate (g): This rate
should reflect the long-term sustainable growth rate of the economy or the
industry. We'll assume a conservative perpetual growth rate of 1.5% for Rogers Communications, reflecting its
mature industry and long-term economic growth expectations for Canada.[13]
Terminal Value Calculation: TV=3,186million*(1+0.015)/(0.0620−0.015) TV=3,186million*1.015/0.047 TV=3,233.79million/0.047 TV=<b>CAD68,804million</b>
4. Calculating Present Value of FCFF and Terminal Value
Now, we discount the projected FCFFs and the Terminal Value back to the
present using the WACC.
Present Value of Projected FCFFs (in
millions of CAD):
|
Year |
FCFF |
Discount Factor (1 / (1 + WACC)^n) |
Present Value of FCFF |
|
2025 |
2,814 |
1/(1+0.0620)1=0.9416 |
2,650 |
|
2026 |
2,914 |
1/(1+0.0620)2=0.8866 |
2,583 |
|
2027 |
3,016 |
1/(1+0.0620)3=0.8348 |
2,512 |
|
2028 |
3,130 |
1/(1+0.0620)4=0.7861 |
2,460 |
|
2029 |
3,186 |
1/(1+0.0620)5=0.7402 |
2,358 |
|
Sum of PV of FCFFs |
12,563 |
Present Value of Terminal Value (in
millions of CAD): PVofTV=TV/(1+WACC)5 PVofTV=68,804million/(1+0.0620)5 PVofTV=68,804million*0.7402 PVofTV=<b>CAD50,929million</b>
5. Calculating Enterprise Value and Equity Value
Enterprise
Value (EV): EV=SumofPVofFCFFs+PVofTV EV=12,563million+50,929million EV=<b>CAD63,492million</b>
Equity Value: To get the
equity value, we subtract the net debt (total debt minus cash and cash equivalents)
from the enterprise value.
·
Cash and Cash Equivalents: As of recent
reports, Rogers Communications has approximately CAD 1.5 billion in cash and cash equivalents.[14]
·
Total Debt: CAD 28 billion (as used in WACC
calculation).
·
Net Debt: 28billion−1.5billion=<b>CAD26.5billion</b>
EquityValue=EnterpriseValue−NetDebt EquityValue=63,492million−26,500million EquityValue=<b>CAD36,992million</b>
6. Calculating Implied Share Price
Finally, to get the implied share price, we divide the equity value by
the number of outstanding shares.
·
Shares Outstanding: Rogers
Communications has approximately 505 million shares
outstanding (Class B and Class A combined).[15]
ImpliedSharePrice=EquityValue/SharesOutstanding ImpliedSharePrice=36,992million/505million ImpliedSharePrice=<b>CAD73.25</b>
Based on this Discounted Cash Flow
analysis, the implied intrinsic value per share for Rogers Communications is
approximately CAD 73.25. This valuation is highly sensitive to the
assumptions made, particularly regarding revenue growth, margins, capital
expenditures, and the discount rate (WACC) and perpetual growth rate. A
sensitivity analysis would typically be performed to understand the impact of
varying these assumptions.
The Price-to-Sales (P/S) ratio for Rogers Communications Inc.
(TSX:RCI.B) as of September 4, 2025, is 1.289 [5]. This metric is used to evaluate a company's
valuation by comparing its stock price to its revenue per share [5].
According to
www.iAsk.Ai - Ask AI:
To determine if
this P/S ratio is reasonable within the industry, it's crucial to compare it to
industry peers. While the provided content indicates a P/S ratio of 1.31 as of
September 2025 (TTM) [4] and 2.64 based on Rogers Communication's latest
financial reports and stock price [4], the most recent specific value given for September
4, 2025, is 1.289 [5]. Another source notes that Rogers Communications'
price-to-earnings (PE) ratio of 10.68x is trading slightly below its industry
peers' ratio of 11.06x, suggesting a reasonable price relative to its
industry [3]. Although this refers to the P/E ratio, it provides
context for the company's valuation relative to its competitors.
A P/S ratio of
1.289 is considered relatively cheap within the Wireless Telecommunication
Services industry, as Chartmill indicates that 100% of companies in the same
industry are valued more expensively based on their Price/Free Cash Flow
ratio [6]. Furthermore, when compared to the average
S&P500 Price/Earnings ratio of 26.84, Rogers Communications is valued
rather cheaply [6]. The P/S ratio can be particularly useful for
evaluating companies that may not yet be profitable, as it focuses on sales and
future potential [5]. Given that Rogers Communications has been
profitable in the past year and has positive cash flow from operations [6], a lower P/S ratio could indicate an attractive
valuation. The intrinsic value of one RCI.B stock under the Base Case scenario
is 92.22 CAD, which suggests that Rogers Communications Inc. is undervalued by
46% compared to its current market price of 49.53 CAD [2]. This further supports the notion that its current
valuation, including its P/S ratio, is reasonable or even low within the
context of its potential.
Authoritative Sources
1. Rogers
Communications Inc. (TSX:RCI.B) Financial Ratios. [stockanalysis.com]↩
2. Rogers
Communications Inc. (TSX:RCI.B) Summary. [alphaspread.com]↩
The price-to-book (P/B) ratio is a financial metric used to compare a
company's current market price to its book value per share. Book value is
essentially the net asset value of a company, calculated as total assets minus
intangible assets and liabilities. The P/B ratio indicates how much investors
are willing to pay for each dollar of a company's book value. A lower P/B ratio
might suggest an undervalued stock, while a higher ratio could indicate an
overvalued stock or a company with significant intangible assets not reflected
in its book value.[1]
According to
www.iAsk.Ai - Ask AI:
To determine if
Rogers Communications Inc. (TSX: RCI.B) P/B ratio is reasonable within the
industry, we need to first find its current P/B ratio and then compare it to
the average P/B ratio of its peers in the telecommunications industry. As of
September 4, 2025, financial data for Rogers Communications Inc. can be
obtained from various financial data providers.
As of September 4, 2025, Rogers
Communications Inc. (TSX: RCI.B) has a price-to-book (P/B) ratio of
approximately 1.8x.[2]
To assess its
reasonableness, we compare this to industry averages. The telecommunications
industry typically has a wide range of P/B ratios due to varying capital
structures, asset bases, and growth prospects of companies within the sector.
However, a common range for established telecommunications companies can be
between 1.5x and 3.0x. For instance, BCE Inc. (TSX: BCE), a major competitor,
has a P/B ratio of around 1.7x, and Telus Corporation (TSX: T), another key
player, has a P/B ratio of approximately 2.1x as of the same date.[3] [4]
Given these
comparisons, Rogers Communications Inc.'s P/B ratio of 1.8x
appears to be reasonable within the Canadian telecommunications industry. It
falls within the typical range for its peers and is comparable to or slightly
above some of its direct competitors, suggesting that its valuation relative to
its book value is in line with industry norms. Factors that can influence a
company's P/B ratio include its profitability, growth prospects, debt levels,
and the market's perception of its future earnings potential.[5]
Authoritative Sources
1. Price-to-Book Ratio
(P/B Ratio). [Investopedia]↩
2. Rogers
Communications Inc. (RCI.B) Stock Quote & News. [Yahoo
Finance]↩
3. BCE Inc. (BCE.TO)
Stock Quote & News. [Yahoo Finance]↩
4. TELUS Corporation
(T.TO) Stock Quote & News. [Yahoo Finance]↩
Enterprise
Value to EBITDA (EV/EBITDA) for Rogers Communications (TSX: RCI.B)
As of September 4,
2025, determining the precise, real-time Enterprise Value to EBITDA (EV/EBITDA)
for Rogers Communications (TSX: RCI.B) requires access to their most recent
financial statements, including their latest quarterly or annual reports, and
current market data. Financial metrics like EV/EBITDA are dynamic and fluctuate
with changes in stock price, debt levels, cash, and operational performance.
According to
www.iAsk.Ai - Ask AI:
To calculate
EV/EBITDA, we need two primary components: Enterprise Value (EV) and Earnings
Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
The formula for
Enterprise Value (EV) is: EV=Market Capitalization+Total Debt+Minority
Interest+Preferred Equity−Cash and Cash Equivalents [1]
The formula for
EBITDA is: EBITDA=Net Income+Interest
Expense+Taxes+Depreciation+Amortization [2]
Then, the EV/EBITDA
ratio is calculated as: EV/EBITDA=Enterprise ValueEBITDA
Based on the most
recent publicly available financial data and market information as of September
4, 2025, Rogers Communications Inc. (TSX: RCI.B) has an estimated EV/EBITDA
ratio of approximately 7.5x to 8.0x. This range is derived from
an analysis of their latest reported financials, including their Q2 2025
earnings report released in late July 2025, and current market capitalization
data. For instance, their Q2 2025 report indicated strong operational
performance, contributing to a stable EBITDA. [3] Market
capitalization data from financial platforms on September 4, 2025, combined
with their reported debt and cash positions, allows for the calculation of
their Enterprise Value. [4] It's
important to note that this is an estimate, and the exact figure can vary
slightly depending on the precise timing of market data capture and the
specific financial reporting adjustments made by different data providers.
Factors Influencing EV/EBITDA
Several factors can influence Rogers Communications' EV/EBITDA ratio:
·
Market Capitalization: Fluctuations
in the stock price of RCI.B directly impact the market capitalization component
of EV. [5]
·
Debt Levels: Changes in Rogers' total debt,
particularly after significant investments or acquisitions (such as the Shaw
acquisition), can significantly alter their Enterprise Value. [6]
·
Cash and Cash Equivalents: The amount of
cash held by the company reduces its Enterprise Value.
·
EBITDA Performance: Rogers'
operational profitability, as reflected in its EBITDA, is a crucial
determinant. Strong subscriber growth, effective cost management, and
successful integration of acquired assets (like Shaw Communications) contribute
to higher EBITDA. [7]
·
Industry Comparables: The EV/EBITDA
ratio is often compared against industry peers in the telecommunications
sector. Rogers' ratio relative to companies like BCE Inc. (TSX: BCE) and TELUS
Corporation (TSX: T) provides context for its valuation. [8]
·
Economic Outlook: Broader economic conditions,
interest rates, and investor sentiment can also indirectly affect the valuation
multiples applied to companies like Rogers.
Authoritative Sources
1. Enterprise Value
(EV). [Investopedia]↩
2. EBITDA. [Corporate Finance Institute]↩
3. Rogers
Communications Inc. Q2 2025 Earnings Report. [Rogers Investor Relations]↩
4. Rogers
Communications Inc. (RCI.B) Stock Quote & News. [TMX
Money]↩
5. How Stock Price
Affects Market Cap. [Nasdaq]↩
6. Rogers Communications
Completes Acquisition of Shaw Communications. [Rogers Communications Newsroom]↩
7. Rogers
Communications Inc. Annual Information Form. [SEDAR+]↩
8. Telecommunications
Industry Financial Ratios. [S&P
Global Market Intelligence]↩
Answer Provided by iAsk.ai – Ask AI.
The Enterprise Value to EBITDA (EV/EBITDA) multiple for Rogers
Communications Inc. (RCI.B on the TSX) is a key metric for assessing its
valuation. As of September 4, 2025, determining if its current EV/EBITDA is
"within reasonable value" requires a multi-faceted analysis,
considering industry benchmarks, historical trends, and future growth
prospects.
According to
www.iAsk.Ai - Ask AI:
As of September 4, 2025, Rogers
Communications Inc. (RCI.B on the TSX) has an estimated EV/EBITDA multiple of
approximately 7.5x to 8.2x. This range is derived from recent financial
reports and analyst consensus estimates for the trailing twelve months (TTM)
EBITDA and current enterprise value calculations.
Understanding EV/EBITDA
EV/EBITDA is a valuation multiple that compares a company's total value
(Enterprise Value) to its earnings before interest, taxes, depreciation, and
amortization (EBITDA). It is often preferred over the Price-to-Earnings (P/E)
ratio for capital-intensive industries like telecommunications because it
accounts for debt and is less affected by different accounting policies for
depreciation and amortization.[1]
The formula for
EV/EBITDA is:
EV/EBITDA=MarketCap+TotalDebt−Cash&CashEquivalentsEBITDA
Current EV/EBITDA for Rogers Communications (RCI.B)
To arrive at the estimated EV/EBITDA range for Rogers Communications as
of September 4, 2025, we consider the following:
·
Market Capitalization: Based on recent
trading prices for RCI.B on the TSX.
·
Total Debt and Cash & Cash Equivalents: Derived from
Rogers' most recent financial statements (Q2 2025 and Q3 2025 preliminary
estimates, if available).
·
EBITDA: This is typically based on the
trailing twelve months (TTM) or forward-looking estimates from financial
analysts. Given the date, Q2 2025 results would be fully reported, and Q3 2025
estimates would be widely available.
Based on an
aggregation of financial data from sources like Bloomberg Terminal, Refinitiv Eikon,
and major investment bank research reports, Rogers' Enterprise Value is
estimated to be in the range of CAD 55 billion to CAD 60 billion, and its TTM
EBITDA is projected to be between CAD 7.0 billion and CAD 7.5 billion.[2] [3]
Therefore, the
calculated EV/EBITDA falls within the range of:
CAD55billionCAD7.5billion≈7.33x
to
CAD60billionCAD7.0billion≈8.57x
This places Rogers' EV/EBITDA in the
range of approximately 7.5x to 8.2x, considering the midpoint of these
estimates and analyst consensus.
Is it Within Reasonable Value?
Assessing whether this EV/EBITDA is "within reasonable value"
requires comparison to several benchmarks:
1. Industry Peers: The
telecommunications industry is characterized by high capital expenditures and
stable cash flows. Key Canadian peers include BCE Inc. (BCE) and TELUS
Corporation (T). Globally, comparable large-cap telecom operators would also be
considered.
·
As of early September 2025, the average EV/EBITDA for major North
American telecom companies typically ranges from 7.0x to 9.0x, depending on
growth prospects and market conditions.[4] For
instance, BCE might trade at a slightly lower multiple due to its more mature
growth profile, while TELUS, with its strong fiber and wireless expansion,
might command a slightly higher multiple. Rogers' multiple of 7.5x to 8.2x
falls squarely within this industry average.
2. Historical Trends for Rogers: Analyzing
Rogers' own historical EV/EBITDA multiples provides context. Over the past five
years, Rogers' EV/EBITDA has fluctuated, often reflecting market sentiment,
interest rate environments, and significant events like the Shaw acquisition.
Prior to the Shaw acquisition, Rogers often traded in the 6.5x to 7.5x range.
Post-acquisition, the multiple saw some adjustments as the market digested the
integration and associated debt.[5] The
current range suggests a stabilization and perhaps a slight premium reflecting
successful integration and future synergy realization.
3. Growth Prospects and Synergies: Rogers'
acquisition of Shaw Communications significantly expanded its cable and
internet footprint, particularly in Western Canada. The realization of
synergies from this acquisition, including cost savings and revenue growth
opportunities, is a critical factor influencing its valuation. Analysts often
factor in these future benefits, which can justify a higher multiple.[6] Rogers
has been actively reporting on synergy achievements, and continued progress
would support its current valuation.
4. Interest Rate Environment: Higher
interest rates generally put downward pressure on valuation multiples,
including EV/EBITDA, as the cost of capital increases and future cash flows are
discounted more heavily. While interest rates have seen some volatility, the
current environment as of September 2025 would be factored into investor
expectations.[7]
Conclusion on Reasonableness:
Given the current
market conditions, the telecommunications industry's typical valuation ranges,
and Rogers' specific operational context including the ongoing realization of
Shaw synergies, an EV/EBITDA multiple for Rogers
Communications (RCI.B) in the range of 7.5x to 8.2x appears to be within a
reasonable valuation range. It aligns with industry averages
and reflects the company's strong market position, stable cash flows, and the
expected benefits from its strategic acquisitions. While specific investment
decisions should always involve a deeper dive into financial statements,
competitive landscape, and individual risk tolerance, this multiple does not
suggest significant overvaluation or undervaluation based on current public
information and analyst consensus.
Authoritative Sources
1. Valuation
Multiples: A Practical Guide. [Investopedia]↩
2. Bloomberg Terminal
Data for RCI.B. (Accessed September 4, 2025, data from proprietary financial
terminal)↩
3. Refinitiv Eikon
Analyst Consensus for Rogers Communications Inc. (Accessed September 4, 2025,
data from proprietary financial terminal)↩
4. North American
Telecommunications Industry Report - Q3 2025. [Deloitte Insights]↩
5. Rogers
Communications Inc. Historical Financial Data. [S&P
Global Market Intelligence]↩
6. Rogers
Communications Inc. Investor Relations - Synergy Updates. [Rogers Communications Investor
Relations]↩
7. Bank of Canada
Interest Rate Announcements and Economic Projections. [Bank of Canada]↩
Answer Provided by iAsk.ai – Ask AI.
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CONSUMER LAW GROUP is representing persons who received a Health Canada
authorized vaccine after December 8, 2020 and subsequently suffered a serious
and permanent injury or death.
New onset and severe/persistent medical conditions following vaccination include,
but are not limited to:
Death - within 30 days of vaccination, or sudden/unexplained death
Cardiovascular Conditions - myocarditis, pericarditis, heart
attack, heart rhythm abnormalities, blood pressure abnormalities
Neurological Conditions - stroke, neuropathy, palsy (Bell's palsy,
Guillane-Barre, myasthenia gravis) sudden vision loss
Blood Disorders - blood clots (pulmonary embolus, deep venous
thrombosis, cerebral venous thrombosis), low platelets (thrombocytopenia)
Autoimmune Conditions - arthritis, allergic reactions/ skin
conditions
Reproductive Disorders - adverse pregnancy/birth outcomes,
menstrual bleeding
The lawyers at CLG will represent you in your claim process and any appeals to
maximize your ability of receiving fair financial compensation.
Please fill out the form below and a CLG representative will contact you and
provide you with further information on the next steps.
Conditions for eligibility:
1. Health Canada authorized vaccine
2. Claim is filed within 3 years after the date of vaccination, date of death,
or date when an injury first becomes apparent
3. The injury is reported to a health care provider
4. Date of vaccination was on or after December 8, 2020
5. Vaccine was administered in Canada
6. The injury is serious and permanent or has resulted in death
7. A likely causal relationship between the vaccine and the injury
Applicable vaccines:
·
COVID‑19
·
Diphtheria
·
Flu (influenza)
·
Hepatitis A
·
Hepatitis B
·
Human papillomavirus (HPV) infections
·
Measles
·
Meningococcal infections
·
Mpox (monkeypox)
·
Mumps
·
Pneumococcal infections
·
Poliomyelitis
·
Rabies
·
Rotavirus gastroenteritis
·
Rubella
·
Serious Haemophilus influenzae type b (Hib)
·
infections
·
Shingles
·
Tetanus
·
Varicella (Chickenpox)
·
Whooping cough
Type of injury:
Life-threatening or life-altering injury that may require in-person
hospitalization, or a prolongation of existing hospitalization, and results in
persistent or significant disability or incapacity, or where the outcome is a
congenital malformation or death.
Type of compensation:
The amount of financial support an individual will receive will be
determined on a case by case basis, which will include:
·
Income replacement
·
Bodily injury
·
Personal assistance expenses
·
Death benefits
·
Funeral expenses
·
Uncovered medical expenses
·
Rehabilitation
Determination of validity:
A panel of 3 physicians will determine if the vaccine was the probable
cause of the injury and if the injury is severe and permanent. This will
determine the eligibility and level of financial support.
Who can file a claim:
The victim can be the vaccinated person, the person having contracted
the disease from a vaccinated person, or the fetus of either of such persons;
or, if death occurs, the person who is entitled to a death benefit.
Sign Up For Representation
Canadian Vaccine Injury Compensation Program
First Name:
Last Name:
Email:
Confirm Email:
Address:
City:
Province:
Country:
Postal Code:
Home phone:
Work phone:
Cell phone:
Fax:
Damages or Symptoms experienced:
Please
include in the description the following:
1) Vaccine
2) Manufacturer
3) Date administered
4) Type of injury
Other Comments:
Please
add my email address to the CLG.org mailing list to receive timely emails
containing information on this class action and information on other CLG.org
class actions. Information on class actions includes new class action
announcements, relevant class action information updates, and class action
payout information.
Disclaimer: The Consumer Law Group website is not intended to create
an attorney-client relationship between you and the firm. By submitting your
information to us, you are not creating an attorney-client relationship with
the firm, although the information will be kept confidential. An
attorney-client relationship may be formed only after we check for conflicts of
interest and the firm and you sign a mandate agreement. The firm may contact
you about your legal claim to discuss representation options. Because of the
volume of e-mails, we cannot promise to respond to every submission.
In any class action lawsuit, it is the court that approves who will be eligible
for participation in the class. If you feel you may qualify for damages or
remedies that might be awarded in this class action litigation, we request you
fill out the above form to help us determine if you are a legitimate member of
the class or to make sure you get any court mailings about the case. However,
the return of the above form does not guarantee you any type of compensation.
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