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Expect Bombardier's 13.43x PE Ratio to Drive Profits

YB
YB_Not Invested
Community Contributor

Published

February 02 2025

Updated

February 02 2025

Bombardier Inc. (BBD-B.TO) has been on a strong upward trajectory, with its stock price climbing from ~$49.69 in early 2024 to ~$85.05 in early 2025. This growth reflects the company’s commitment to financial discipline, strategic focus on business jets, and operational efficiency.

With a P/E ratio of 13.43x, investors see Bombardier as a balanced play valued reasonably for its earnings potential while maintaining a solid footing in a competitive industry. This valuation suggests confidence in the company ability to sustain growth while effectively managing risks.

As Bombardier continues optimizing its operations and strengthening its financial position, will this momentum hold?

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Disclaimer

The user YB_ holds no position in TSX:BBD.B. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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Fair Value
CA$47.4
69.9% overvalued intrinsic discount
YB_'s Fair Value
Future estimation in
PastFuture-6b20b20142017202020232025202620292030Revenue US$9.8bEarnings US$486.5m
% p.a.
Decrease
Increase
Current revenue growth rate
3.58%
Aerospace & Defense revenue growth rate
0.35%