Rogers Communications is a provider of wireless voice and data communications services, cable television, high-speed Internet and telephony services to consumers and businesses in Canada. The company was founded in 1920 and is based in Toronto, Canada.
RCI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for RCI, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Rogers Communications Inc ranked in the 43th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 13.33%. The most interesting components of our discounted cash flow analysis for Rogers Communications Inc ended up being:
Rogers Communications Inc's weighted average cost of capital (WACC) is 6%; for context, that number is higher than just 10.91% of tickers in our DCF set.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than only 17.36% of stocks in its sector (Communication Services).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CTL, CABO, VZ, TSU, and TDS can be thought of as valuation peers to RCI, in the sense that they are in the Communication Services sector and have a similar price forecast based on DCF valuation.