Header cover image

Canadian (TSX) Market Analysis & Valuation

UpdatedAug 09, 2022
DataAggregated Company Financials
  • 7D-0.4%
  • 3M-1.5%
  • 1Y-1.2%
  • YTD-5.6%

Over the last 7 days, the market has remained flat, although notably the Consumer Discretionary sector gained 3.5% in that time. As for the longer term, the market has also been flat over the past year. Earnings are forecast to grow by 7.6% annually.

Market Valuation and Performance

Has the Canadian Market valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 09 Aug 2022CA$3.3tCA$2.0tCA$239.9b10.4x13.7x1.6x
Thu, 07 Jul 2022CA$3.1tCA$2.0tCA$231.8b10.2x13.5x1.6x
Sat, 04 Jun 2022CA$3.4tCA$1.9tCA$227.3b11.8x15.1x1.8x
Mon, 02 May 2022CA$3.5tCA$1.9tCA$218.4b12.2x16x1.8x
Wed, 30 Mar 2022CA$3.7tCA$1.9tCA$212.2b13.3x17.5x2x
Fri, 25 Feb 2022CA$3.5tCA$1.8tCA$199.8b12.8x17.5x1.9x
Sun, 23 Jan 2022CA$3.4tCA$1.8tCA$188.6b12.8x18.2x1.9x
Tue, 21 Dec 2021CA$3.4tCA$1.8tCA$189.8b12.1x17.7x1.9x
Thu, 18 Nov 2021CA$3.5tCA$1.8tCA$188.2b13.2x18.8x2x
Sat, 16 Oct 2021CA$3.4tCA$1.7tCA$169.1b13.4x20.3x2x
Mon, 13 Sep 2021CA$3.4tCA$1.7tCA$167.9b12.9x20x2x
Wed, 11 Aug 2021CA$3.3tCA$1.7tCA$167.5b12.8x19.7x2x
Sun, 06 Jun 2021CA$3.2tCA$1.6tCA$126.3b14.7x25.3x2x
Wed, 10 Mar 2021CA$2.9tCA$1.6tCA$59.3b15.6x48.5x1.8x
Tue, 01 Dec 2020CA$2.6tCA$1.6tCA$51.7b15.6x51.2x1.7x
Fri, 04 Sep 2020CA$2.5tCA$1.6tCA$58.3b16.9x42.4x1.6x
Mon, 08 Jun 2020CA$2.2tCA$1.6tCA$90.0b13.7x25x1.4x
Sun, 01 Mar 2020CA$2.5tCA$1.7tCA$144.8b15.5x17x1.5x
Wed, 04 Dec 2019CA$2.6tCA$1.6tCA$135.6b15x18.9x1.6x
Sat, 07 Sep 2019CA$2.5tCA$1.6tCA$129.6b14.4x19.2x1.5x
Price to Earnings Ratio


Total Market Cap: CA$2.5tTotal Earnings: CA$129.6bTotal Revenue: CA$1.6tTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Market Price to Earnings3Y Average 26x202020212022
Current Market PE
  • Investors are pessimistic on the Canadian market, indicating that they anticipate earnings will not grow as fast as they have historically.
  • The market is trading at a PE ratio of 13.7x which is lower than its 3-year average PE of 26.0x.
Past Earnings Growth
  • The earnings for Canadian listed companies have grown 23% per year over the last three years.
  • Revenues for these companies have grown 7.3% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Sector Trends

Which sectors have driven the changes within the Canadian Market?

CA Market-0.38%
Consumer Discretionary3.46%
Real Estate0.13%
Consumer Staples-0.63%
Sector PE
  • Investors are most optimistic about the Tech sector which is trading above its 3-year average PE ratio of 34.5x.
  • Analysts are expecting annual earnings growth of 27%, which is lower than the prior year's growth of 30% per year.
  • This could indicate that the market believes that analysts are underestimating future growth.
  • Investors are most pessimistic about the Real Estate sector, which is trading below its 3-year average of 10.0x.
Forecasted Growth
  • Analysts are most optimistic on the Healthcare sector, expecting annual earnings growth of 71% over the next 5 years.
  • This is better than its past earnings growth rate of 28% per year.
  • In contrast, the Real Estate industry is expected to see its earnings growth to stay flat over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuationSector
QSP.UN Restaurant Brands International Limited PartnershipCA$77.149.4%
-4.2%PE17.2xConsumer Discretionary
BAM.A Brookfield Asset ManagementCA$64.611.7%
BEPC Brookfield RenewableCA$53.987.7%
NVEI NuveiCA$54.1020.9%
CP Canadian Pacific RailwayCA$102.351.4%
See more
Simply Wall St‚ĄĘ
Simply Wall Street Pty Ltd
17-21 Bellevue Street, Surry Hills, Sydney
Download on the App StoreGet it on Google Play
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Market Insights

How to invest during a Recession; U.S. and China tension is rising, what does this mean for investors?; Tesla, Uber, Airbnb, etc. reported results this week

Continue reading

Latest News