A Fresh Look at Rogers Communications (TSX:RCI.B) Valuation After Latest Share Price Recovery

Rogers Communications (TSX:RCI.B) shares have risen 1% today, catching the eye of investors as the company’s stock continues to recover from last week’s drop. The telecom giant’s performance is sparking discussion about its recent momentum.

See our latest analysis for Rogers Communications.

Rogers Communications has turned heads with a 1.08% share price gain today, building on a nearly 20% share price return year-to-date as the stock regains its footing after last week's dip. Over the past year, total shareholder return sits at 8.8%, signaling that while momentum is picking up lately, the longer-term picture has been more modest.

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After a solid rebound this year, the real debate is whether Rogers Communications shares still trade at a discount or if recent gains mean future growth is already baked into the price. This raises the question: is now a genuine buying opportunity?

Most Popular Narrative: 10.6% Undervalued

With the narrative fair value for Rogers Communications set at CA$58.69 and the last close at CA$52.49, the stage is set for a deeper assessment of the stock’s growth levers and what might be driving this valuation call from the most closely-followed narrative.

The continued deployment and expansion of 5G and Wi-Fi 7 infrastructure, along with the introduction of advanced services like fixed wireless internet and bundled offerings, allows Rogers to capitalize on increasing mobile data consumption and connected device proliferation. This supports both subscriber additions and higher margins in future periods.

Read the complete narrative.

Want to know the missing piece behind this valuation? There is an ambitious earnings target and a future profit multiple at the core of this narrative, but the real surprise is how much margin expansion is being counted on. What financial drivers are powering expectations for such a jump in value? Dive into the full narrative for the wildest projections behind the numbers.

Result: Fair Value of $58.69 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, ongoing regulatory uncertainty and intense competition could threaten Rogers Communications' momentum and create uncertainty around the optimistic outlook supporting current valuations.

Find out about the key risks to this Rogers Communications narrative.

Build Your Own Rogers Communications Narrative

If you see things differently or want to chart your own path, you can quickly piece together your own view using the same data. Do it your way

Story Continues

A great starting point for your Rogers Communications research is our analysis highlighting 4 key rewards and 3 important warning signs that could impact your investment decision.

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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.

Companies discussed in this article include RCI-B.TO.

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