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The TSX continues to be buying and selling close to all-time highs. When you’re like me, possibly you’re hesitant to pay up for shares at the moment. Possibly you’re searching for some undervalued Canadian shares to purchase. As they are saying, there’s at all times a chance to purchase undervalued shares in each market.

On this article, I’ll focus on three undervalued Canadian shares to purchase directly, as a result of they received’t be this fashion ceaselessly.

BCE

As one in every of Canada’s telecom giants, BCE (TSX:BCE) has felt the sting of a altering business. Elevated competitors, decrease cellular costs, and a common sense of diminishing returns have hit BCE inventory. As you may see from the graph under, BCE’s inventory worth has been hit onerous, down greater than 50% from its 2022 highs.

That is one thing that few would have predicted. But, the inventory was taken down. And it stays under $40 right now. However BCE inventory has responded to its new, tougher surroundings. It has reduce prices, decreased the capital depth of the enterprise, and is pursuing new avenues of progress.

All informed, present expectations are calling for earnings per share (EPS) of $2.50 to $2.65 in 2026. This represents a decline of 5% to 11%, because of larger depreciation, amortization, and curiosity expense. Buying and selling at 14 occasions earnings on the midpoint of the steerage EPS vary. But, this isn’t a straightforward scenario. Progress is challenged, and the strain on BCE’s cellular enterprise is actual. However this undervalued Canadian inventory is prone to profit from its main fibre community, its Ziply acquisition, synthetic intelligence options, and its leaner, stronger monetary make-up within the coming years.

Cineplex

As one in every of Canada’s main leisure firms, Cineplex (TSX:CGX) has a dominant market share within the film exhibition business. So why are its shares so low-cost? Properly, the issue right here is the film exhibition business. It’s hit some actual challenges with the appearance of streaming, and, in fact, the pandemic harm as properly.

Right now, attendance at Cineplex is low relative to historic ranges, nevertheless it’s additionally fairly unstable. What this implies to me is that customers nonetheless prefer to attend film theatres, they only want high quality content material to get themselves there. Attendance will increase with the proper content material. The truth that Netflix has walked away from its proposed Warner Brothers acquisition is a constructive for Cineplex, its content material, and the film exhibition business usually.

In Cineplex inventory’s newest quarter, the corporate reported one other disappointing outcome, with EPS coming in at $0.01 versus expectations that have been calling for $0.19. Cineplex’s free money flows paint a greater image for the corporate. In 2025, free money circulate got here in at $92 million, 15% larger than the prior 12 months. For this 12 months, analyst expectations are calling for Cineplex inventory to report EPS of $0.39 and for 2027, Cineplex inventory is anticipated to generate $0.71 in EPS.

CGI Inc.

Lastly, CGI (TSX:GIB.A) is one other undervalued Canadian inventory. CGI is a number one info know-how (IT) firm that’s diversified throughout industries served and nations. It’s a inventory that’s additionally been hit onerous within the final 12 months — down 34%. But, its outcomes stay spectacular.

Within the firm’s newest quarter, the fourth quarter of 2025, income elevated 9.7% to $4.01 billion. Additionally, adjusted EPS elevated 10.9% versus the prior 12 months, and working money circulate got here in at $663 million or 16.5% of income. Lastly, CGI’s backlog at the moment sits at a really wholesome $31.32 billion. Regardless of demand considerations because of uncertainty in its U.S. authorities enterprise and the economic system, the enterprise stays sturdy.

CGI inventory stays the most effective tech shares to purchase for long-term returns.

The underside line

Undervalued Canadian shares don’t keep undervalued ceaselessly. Contemplate shopping for these three shares for long-term wealth creation. “Purchase when everyone seems to be promoting.”