As of June 14, 2025, Rogers Communications Inc has a Discounted Cash Flow (DCF) derived fair value of $67.86 per share. With the current market price at $37.56, this represents a potential upside of 80.7%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $61.39 |
| DCF Fair Value (10-year) | $67.86 |
| Potential Upside (5-year) | 63.4% |
| Potential Upside (10-year) | 80.7% |
| Discount Rate (WACC) | 4.2% - 6.3% |
Revenue is projected to grow from $20604 million in 12-2024 to $29582 million by 12-2034, representing a compound annual growth rate of approximately 3.7%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 20604 | 7% |
| 12-2025 | 21406 | 4% |
| 12-2026 | 21822 | 2% |
| 12-2027 | 22146 | 1% |
| 12-2028 | 22774 | 3% |
| 12-2029 | 23662 | 4% |
| 12-2030 | 24135 | 2% |
| 12-2031 | 24618 | 2% |
| 12-2032 | 25407 | 3% |
| 12-2033 | 27039 | 6% |
| 12-2034 | 29582 | 9% |
Net profit margin is expected to improve from 8% in 12-2024 to 8% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 1734 | 8% |
| 12-2025 | 1756 | 8% |
| 12-2026 | 1790 | 8% |
| 12-2027 | 1817 | 8% |
| 12-2028 | 1868 | 8% |
| 12-2029 | 1941 | 8% |
| 12-2030 | 1980 | 8% |
| 12-2031 | 2019 | 8% |
| 12-2032 | 2084 | 8% |
| 12-2033 | 2218 | 8% |
| 12-2034 | 2427 | 8% |
with a 5-year average of $3291 million. Projected CapEx is expected to maintain at approximately 19% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 3651 |
| 12-2026 | 3933 |
| 12-2027 | 4172 |
| 12-2028 | 4257 |
| 12-2029 | 4357 |
| 12-2030 | 4463 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 100 |
| Days Inventory | 18 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 6192 | 480 | 3128 | 99 | 2486 |
| 2026 | 8628 | 652 | 4252 | 89 | 3635 |
| 2027 | 8936 | 662 | 4315 | 159 | 3800 |
| 2028 | 9157 | 681 | 4437 | 158 | 3881 |
| 2029 | 9448 | 707 | 4610 | 265 | 3865 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 61.39 | 63.4% |
| 10-Year DCF (Growth) | 67.86 | 80.7% |
| 5-Year DCF (EBITDA) | 52.10 | 38.7% |
| 10-Year DCF (EBITDA) | 68.69 | 82.9% |
Is Rogers Communications Inc (RCI.B.TO) a buy or a sell? Rogers Communications Inc is definitely a buy. Based on our DCF analysis, Rogers Communications Inc (RCI.B.TO) appears to be significantly undervalued with upside potential of 80.7%. The company's strong projected growth in revenue and profitability, coupled with consistent capital expenditure, supports our positive outlook on its intrinsic value.
Key investment drivers include:
Investors should consider a strong buy at the current market price of $37.56.