TELUSMEX:TUN 68 Interest Coverage is 1.29 as of Mar. 2026, which is 61% below its 10-year median of 3.30. GuruFocus rates MEX:TUN with a GF Score™ of 68/100 and a GF Value™ of MXN315.68. The stock has 8 warning signs investors should review. Among 286 Telecommunication Services companies, TELUS ranks worse than 82.87% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. TELUS's
Operating Income
for the
three
months ended in Mar. 2026 was MXN6,598 Mil. TELUS's Interest Expense for the
three
months ended in Mar. 2026 was MXN-5,113 Mil.
TELUS's interest coverage for the quarter that ended in Mar. 2026 was 1.29.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. TELUS Corp interest coverage is 1.59, which is low.
The historical rank and industry rank for TELUS's Interest Coverage or its related term are showing as below:
MEX:TUN'
s Interest Coverage Range Over the Past 10 Years
Min: 1.59 Med: 3.3 Max: 4.56
Current: 1.59
MEX:TUN's Interest Coverage is ranked worse than 82.87% of 286
companies
in the Telecommunication Services industry
Industry Median: 4.715
vs MEX:TUN: 1.59
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
TELUS Interest Coverage Related Terms
TELUS Interest Coverage Historical Data
* Premium members only.
The historical data trend for TELUS's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MEX:TUN vs TMUS, VZ, T: Interest Coverage Comparison
For the Telecom Services subindustry, TELUS's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TELUS Interest Coverage vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, TELUS's Interest Coverage distribution charts can be found below:
* The bar in red indicates where TELUS's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TELUS (MEX:TUN) has a Interest Coverage of 1.29 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on TELUS and its competitors. This is 61% below median its historical median of 3.30. Over the past decade, TELUS's Interest Coverage has ranged from 1.59 to 4.56. According to the industry distribution chart, TELUS ranks #237 out of 286 companies in the Telecommunication Services industry, placing it in the top 82.9%.
Is TELUS's Interest Coverage too high?
TELUS's current Interest Coverage of 1.29 is 61% below median its 10-year median of 3.30. Over the past 10 years, this metric has ranged from a low of 1.59 to a high of 4.56. The Telecommunication Services industry median Interest Coverage is 4.72. TELUS's value of 1.29 is 72.6% below this industry median. Based on the distribution chart, TELUS ranks #237 out of 286 companies in the Telecommunication Services industry, which is in the bottom quartile relative to peers. Overall, TELUS has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does TELUS's Interest Coverage compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, TELUS ranks #237 out of 286 companies for Interest Coverage. This places TELUS in the lower half of its industry. The industry median Interest Coverage is 4.72. TELUS's value of 1.29 is 72.6% below this benchmark. Historically, TELUS's own Interest Coverage has ranged from 1.59 to 4.56 over the past decade. While the company's 10-year median is 3.30 vs. the industry median of 4.72, TELUS has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Telecommunication Services company?
The median Interest Coverage among Telecommunication Services companies is 4.72, based on 286 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TELUS's current Interest Coverage of 1.29 is 72.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on TELUS and its competitors. For the Telecommunication Services industry, the median Interest Coverage is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TELUS's current Interest Coverage is 1.29, which is 61% below median its own 10-year median of 3.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TELUS stock overvalued right now?
TELUS (MEX:TUN) has a current Interest Coverage of 1.29. The stock's GF Value™ is MXN315.68, compared to a current price of MXN240.00 — trading 24% below its estimated fair value. The current Interest Coverage is 1.29, which is 61% below median its 10-year median of 3.30 and 72.6% below the Telecommunication Services industry median of 4.72. TELUS's overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For TELUS (MEX:TUN), the current Interest Coverage is 1.29 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TELUS (MEX:TUN) Overvalued in 2026?
Based on GuruFocus' analysis, TELUS stock appears to be undervalued.
The current stock price of MXN240.00 is trading 24% below its estimated GF Value™ of MXN315.68.
Key valuation signals for MEX:TUN:
Interest Coverage: 1.29 (61% below median its 10-year median of 3.30)
GF Value™: MXN315.68 vs. price of MXN240.00 (24% below fair value)
Industry Position: 72.6% below the Telecommunication Services median (#237 of 286)
No single metric tells the full story. See the MEX:TUN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telus is one of the Big Three wireless service providers in Canada, with over 10 million mobile phone subscribers nationwide constituting almost 30% of the total market. It is the incumbent local exchange carrier in the western Canadian provinces of British Columbia and Alberta, where it provides internet, television, and landline phone services. It also has a small wireline presence in eastern Quebec. Mostly because of recent acquisitions, more than 20% of Telus' sales now come from nontelecom businesses, most notably in the international business services, health, security, and agriculture industries. The firm has a 55% economic stake in Telus International.
68GF Score
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