Quebecor (TSX:QBR.A) Valuation Check After Strong Quarter, Expanded Buyback And Confirmed Dividend

Quebecor earnings, buyback amendment, and dividend draw investor focus

Quebecor (TSX:QBR.A) is back in the spotlight after reporting first quarter 2026 results, confirming its quarterly dividend, and securing Toronto Stock Exchange approval to expand its normal course issuer bid for Class B shares.

See our latest analysis for Quebecor.

The stock has seen strong momentum, with a 1 day share price return of 5.5% and a year to date share price return of 24.1%. The 1 year total shareholder return of 72.8% highlights how recent earnings, the higher buyback limit, and the confirmed dividend are feeding into a constructive longer term trend.

If Quebecor’s recent move has you thinking about where to look next, this could be a good moment to scan for other telecom infrastructure and network plays using our 36 power grid technology and infrastructure stocks

With the stock up 72.8% over the past year and trading above the average analyst target, yet screening as intrinsically discounted, you have to ask: is Quebecor still undervalued, or is the market already pricing in future growth?

Price-to-Earnings of 16.5x: Is it justified?

On a P/E of 16.5x, Quebecor trades above the peer average of 12.2x, even though the stock screens as 47% below the SWS DCF fair value estimate.

The P/E multiple compares the current share price to earnings per share and is a quick way to see how much investors are paying for each dollar of profit. For a mature telecom and media group with CA$5.7b in revenue and CA$890.7m in net income, this ratio often reflects expectations around the durability of cash flows and how reliable earnings are.

Quebecor is described as expensive versus the peer average and the SWS fair P/E estimate of 10.3x, which signals that the current market price embeds a richer earnings multiple than both peers and that fair ratio level. At the same time, the company has high quality earnings, earnings growth of 9.4% per year over the past 5 years, 16.4% earnings growth over the past year, higher net profit margins of 15.6% compared to 13.6% last year, and earnings forecast to grow 5.85% per year, so some investors may see reasons for a premium multiple despite slower expected growth than the wider Canadian market.

Against the Global Telecom industry, the picture flips. Quebecor’s 16.5x P/E is described as good value versus the industry average of 17.3x, which indicates the stock trades at a slight discount to global peers even though its earnings profile has recently outpaced the Telecom industry figure of 2.4% earnings decline. Compared with the estimated fair P/E of 10.3x, however, there remains a sizeable gap that could narrow if the market eventually prices the stock closer to that fair ratio level.

Explore the SWS fair ratio for Quebecor

Result: Price-to-Earnings of 16.5x (OVERVALUED)

However, higher earnings expectations and Quebec focused revenue leave the stock exposed if telecom pricing, regulation, or capital needs turn out less favourable than hoped.

Find out about the key risks to this Quebecor narrative.

Another view: DCF points in the opposite direction

While the 16.5x P/E screens as rich versus the fair ratio of 10.3x, the SWS DCF model points the other way. On that view, Quebecor at CA$65.4 is trading 47% below an estimated fair value of CA$123.51. So which signal should carry more weight for you?

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

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 9 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

With mixed signals from P/E and DCF in mind, this is the moment to look at the underlying data yourself and decide what really matters for your approach. Then weigh both the potential upsides and the areas of concern with the help of our 4 key rewards and 1 important warning sign

Looking for more investment ideas?

If Quebecor is on your radar, do not stop there. Widen your watchlist now so you are not relying on a single story for your portfolio.

• Target stability with companies that score well on resilience and risk by checking out 12 resilient stocks with low risk scores.
• Hunt for quality at a discount using our list of 9 high quality undervalued stocks.
• Spot companies with strong finances by reviewing the solid balance sheet and fundamentals stocks screener (8 results).

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.

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