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Cogeco Inc (CGO) Fair Value & Analysis

Communication Services · CA · Market cap C$597M

CI Cogeco Inc CGO · TO
PriceC$58.97
Fair ValueC$176.91
Upside+200.0%
Quality52/100
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Expensive Growth
Thin margins · 2.9% net margin
High debt · generates free cash flow
Ranks above peers (10/15)
Moderate moat 50/100
Evidence: Medium Range C$108.81 – C$221.14 Share as image

Fair value as of: Jul 20, 2026

From 24 valuation models · updated 21 days ago

Fair value updated Jul 20, 2026, revised from C$193.82 to C$176.91 (−8.7%) since Jul 7, 2026. Share price −5.4% over the past month.

A solid business, screening 200% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (C$108.81). The market is more pessimistic than our downside scenario.
  • Solid quality (52/100) at a price below fair value, the discount is the argument here, not the business quality.
  • A fairly wide model range (C$108.81 to C$221.14) leaves room in how you read the outcome.
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Price vs Fair Value (5 years)

C$75.41 C$38.01 Fair Value C$176.91 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 20, 2026.

How to read this chart

60‑month range C$38.01 – C$75.41 · fair‑value band C$108.81 – C$221.14 · the C$58.97 price screens below the C$176.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 20, 2026.

Full chart & analysis →

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Analysis

Cogeco Inc (CGO) currently trades at C$58.97, while our model-based Fair Value estimate is C$176.91, implying the stock looks roughly 200.0% undervalued today. The Quality Score stands at 52/100 (solid quality), in the Communication Services sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, Cogeco Inc generated revenue of C$2.9B at a net margin of 2.9%. Revenue declined 5.3% year over year. It earns a return on equity of 9.0%. Net debt stands at C$4.6B. Fundamentals as of Jul 20, 2026

Our scenario range runs from C$108.81 (bear case) to C$221.14 (bull case); at C$58.97, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 22% below its 52-week high and 12% above its 52-week low, currently below its 200-day average. For context, the median of 10 Communication Services peers we cover trades at 32% fair-value upside, at 200%, CGO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF C$25.52 C$213.10 C$445.79 80
Residual Income C$73.83 C$79.97 C$93.67 76
Rev-Margin DCF C$94.46 C$434.21 C$820.40 74
All 24 models by family
DCF Models
FCF DCF C$21.59 C$236.36 C$519.69 38
5Y Revenue Exit C$94.46 C$433.57 C$863.64 39
5Y EBITDA Exit C$439.39 C$1,074 C$1,812 41
10Y Revenue Exit C$41.67 C$324.94 C$699.41 36
10Y EBITDA Exit C$258.69 C$729.19 C$1,356 37
10Y P/E Exit C$85.32 35
Earnings-Based
Graham-Dodd C$59.91 C$180.04 C$238.60 54
Lynch FV C$38.24 C$54.62 C$71.01 50
PEG = 1.0 C$38.24 C$54.62 C$71.01 46
EPV C$59.54 C$132.55 C$193.38 59
Dividend Discount
Gordon GGM C$27.94 C$50.35 C$69.31 70
DDM Multi-Stage C$27.94 C$42.81 C$53.79 61
Multiples
P/E Multiple C$145.37 C$193.82 C$242.28 63
P/S Multiple C$112.33 C$149.77 C$187.22 58
P/B Multiple C$112.33 C$149.77 C$187.22 55
EV/EBIT C$436.16 C$740.16 C$1,044 53
EV/EBITDA C$880.00 C$1,332 C$1,784 54
EV/Revenue C$179.16 C$459.87 C$740.59 43
Asset-Based
NCAV (Graham) C$44.74 C$59.95 C$89.48 50
Growth DCF
Growth DCF C$25.52 C$213.10 C$445.79 80
Rev-Margin DCF C$94.46 C$434.21 C$820.40 74
Economic Profit
Residual Income C$73.83 C$79.97 C$93.67 76
ROIC Compounder C$59.54 C$151.52 C$265.94 72
Growth Earnings
Growth-Adj P/E C$118.22 C$168.89 C$219.55 68

Widest divergence: DCF Models (C$433.57) versus Dividend Discount (C$42.81). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) C$2.9B
Revenue growth (YoY) -5.3%
Net margin 2.9%
Return on equity 9.0%
Free cash flow C$515M FY2025
P/E ratio 7.3
More key figures
Operating margin 23.9%
EPS (TTM) C$8.73
Dividend yield 5.9%
EPS growth (YoY) +4.8%
Net debt C$4.6B FY2025

Figures from reported company fundamentals · as of Jul 20, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 48 · Market factors (momentum, volatility) 50

Profitability 24
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 73
Earnings quality: real cash, not paper profit
Fin. Strength 4
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 87
Calm price path (market factor)
Momentum 36
Price trend over the last 3–12 months (market factor)
52W Momentum 33
Distance to the 52-week high (market factor)
Net Issuance 100
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Cogeco Inc. operates in the communications and media sectors in Canada and the United States. The company operates in two segments, Canadian Telecommunications and American Telecommunications.

Full company description

Cogeco Inc. operates in the communications and media sectors in Canada and the United States. The company operates in two segments, Canadian Telecommunications and American Telecommunications. It provides a range of Internet, video, and phone services through advanced fibre optic and two-way telecommunications distribution networks primarily to residential customers, as well as business services under the Cogeco Connexion name in Quebec and Ontario; and Breezeline brand in the United States. The company provides advanced network connectivity services, such as dedicated fibre, session initiation protocol, primary rate interface, trunking solutions, and hosted private branch exchange solutions, as well as managed business Wi-Fi. In addition, it owns and operates 21 radio stations with complementary radio formats and coverage serving a range of audiences primarily across the province of Québec; and Cogeco News, a news agency. It serves primary service units, including Internet, video, and telephony service customers. The company was incorporated in 1957 and is headquartered in Montreal, Canada. Cogeco Inc. operates as a subsidiary of Gestion Audem Inc.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Cogeco Inc reported revenue of C$3.0B in FY2025 versus C$2.6B in FY2021, a compound +3.7%/yr. Reported net income was C$85.0M in FY2025, compounding −33.7%/yr from FY2021.

Growth Quality 54/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
C$3.0B
Latest YoY
−2.1%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.1%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.9%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.9%
Revenue +3.7%/yr
FY21 C$2.6B
FY22 C$3.0B
FY23 C$3.1B
FY24 C$3.1B
FY25 C$3.0B
Net income −33.7%/yr
FY21 C$439M
FY22 C$458M
FY23 C$70.6M
FY24 C$96.7M
FY25 C$85.0M
Character of growth · EPS growth decomposed (2014-2025) +4.2 % p.a.
Revenue per share +7.4 pp

of which total revenue +3.8 pp · buybacks/dilution +3.6 pp

EBIT margin +1.7 pp
Tax rate −0.2 pp
Residual (interest, one-offs) −4.7 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "Cogeco Inc Fair Value". https://www.fairvalue-calculator.com/stock/CGO

Peer Group

Telecom Services · 250 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Below median
Fair Value upside +200% · Top 25%
Return on equity (TTM) 9% · Above median
Return on assets 5% · Above median
Net margin (TTM) 3% · Below median
Operating margin (TTM) 24% · Top 25%
Revenue growth -5% · Bottom 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 5.41× · Higher than 75% of peers

Valuation Multiples vs Telecom Services median · lower = cheaper

P/E (TTM) 7.3× · Cheaper than 75% of peers
P/B 0.50× · Cheaper than 75% of peers
P/S (TTM) 0.15× · Cheaper than 75% of peers
P/FCF 0.8× · Cheaper than median
EV/EBITDA 3.6× · Cheaper than 75% of peers
PEG 0.60× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 29
FUTURE 0 · sector 15
PAST 36 · sector 28
HEALTH 0 · sector 88
DIVIDEND 0 · sector 73

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Telecom Services stocks, each showing price versus our Fair Value estimate (as of Jul 20, 2026).

Stock Price Fair Value vs Fair Value
China Mobile Limited 600941 ¥89.98 ¥109.88 +22%
T-Mobile US, Inc TMUS $187.61 $172.67 -8%
Bharti Airtel Limited BHARTIARTL ₹1,922 ₹941.55 -51%
China Telecom Corporation 601728 ¥6.01 ¥8.36 +39%
América Móvil, S.A. AMXB 23.07 MXN 30.35 MXN +32%
Vodafone Group VODN 259.50 MXN 507.27 MXN +95%
Advanced Info Service Public Company ADVANC 379.00 THB 286.77 THB -24%
Chunghwa Telecom Co 2412 133.50 TWD 100.00 TWD -25%
China Unicom (Hong Kong) Limited 0762 HK$6.50 HK$13.03 +100%
Telefónica, S.A TEFN 75.67 MXN 111.01 MXN +47%

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Frequently asked questions

Is Cogeco Inc (CGO) overvalued or undervalued?
As of Jul 20, 2026, our model estimates a fair value of C$176.91 versus a price of C$58.97, about +200% (undervalued).
What is the fair value of CGO?
Our model-based fair value for Cogeco Inc is C$176.91 (as of Jul 20, 2026), built from audited fundamentals. The current price is C$58.97.
What is the quality score of CGO?
Cogeco Inc has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Cogeco Inc (CGO)?
Cogeco Inc reported trailing-twelve-month revenue of about C$2.9B (latest available figure, as of Jul 20, 2026).
What is the net profit margin of CGO?
The net profit margin of Cogeco Inc is about 2.9%, meaning it keeps roughly 2.9% of revenue as net income. Based on the latest reported figures.
Does Cogeco Inc pay a dividend?
Cogeco Inc currently shows a dividend yield of about 5.94% relative to its recent price (as of Jul 20, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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