What is the enterprise value of TELUS Corporation?

• A. $15 billion.
• B. $40 billion.
• C. $26.5 billion.
• D. $8 billion.

Answer: (C)

Enterprise value captures the total price you'd pay to acquire the company, reflecting how much capital is tied up in it—both the money owed (debt) and the value to shareholders (equity), adjusted for cash on hand. The standard way to think about it is that EV equals the market value of equity (the company’s stock market capitalization) plus debt and other obligations, minus cash and cash equivalents. In practice, this is often approximated as market cap plus net debt (total debt minus cash).

For TELUS, combining its current market capitalization with its debt load and cash reserves yields an enterprise value around 26.5 billion. That number makes sense because the company’s market value plus its net borrowings, after accounting for available cash, typically lands in that range for a large telecom operator with steady earnings and moderate debt.

The other amounts don’t fit this framing. A value around 15 billion would suggest a much smaller equity base or far lower net debt; 40 billion would require substantially higher debt or equity than TELUS usually carries; 8 billion would imply far more cash relative to debt than is typical for a major telecom. The enterprise value, by combining market value with leverage and liquidity, ends up at about 26.5 billion, which aligns with TELUS’s scale and financial structure.