The North West Company Inc.

TSX:NWC Stock Report

Market Cap: CA$2.5b

North West Valuation

Is NWC undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of NWC when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NWC (CA$53.43) is trading below our estimate of fair value (CA$112.85)

Significantly Below Fair Value: NWC is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NWC?

Key metric: As NWC is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for NWC. This is calculated by dividing NWC's market cap by their current earnings.
What is NWC's PE Ratio?
PE Ratio19.2x
EarningsCA$132.55m
Market CapCA$2.52b

Price to Earnings Ratio vs Peers

How does NWC's PE Ratio compare to its peers?

The above table shows the PE ratio for NWC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average26.5x
EMP.A Empire
14.5xn/aCA$9.6b
MRU Metro
20.8x3.4%CA$19.2b
WN George Weston
46.8x6.8%CA$28.2b
L Loblaw Companies
24x-0.9%CA$53.1b
NWC North West
19.2xn/aCA$2.5b

Price-To-Earnings vs Peers: NWC is good value based on its Price-To-Earnings Ratio (19.2x) compared to the peer average (26.5x).

Price to Earnings Ratio vs Industry

How does NWC's PE Ratio compare vs other companies in the North American Consumer Retailing Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
NWC 19.2xIndustry Avg. 20.8xNo. of Companies7PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: NWC is good value based on its Price-To-Earnings Ratio (19.2x) compared to the North American Consumer Retailing industry average (20.6x).

Price to Earnings Ratio vs Fair Ratio

What is NWC's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NWC PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio19.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate NWC's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst NWC forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$53.43
CA$57.50
+7.6%
2.6%CA$59.00CA$56.00n/a2
Nov ’25CA$53.05
CA$57.50
+8.4%
2.6%CA$59.00CA$56.00n/a2
Oct ’25CA$51.13
CA$54.00
+5.6%
9.4%CA$59.00CA$47.00n/a3
Sep ’25CA$45.68
CA$45.33
-0.8%
11.0%CA$52.00CA$40.00n/a3
Aug ’25CA$45.15
CA$45.33
+0.4%
11.0%CA$52.00CA$40.00n/a3
Jul ’25CA$41.44
CA$43.75
+5.6%
5.7%CA$47.00CA$40.00n/a4
Jun ’25CA$37.65
CA$42.25
+12.2%
4.5%CA$45.00CA$40.00n/a4
May ’25CA$38.85
CA$42.25
+8.8%
4.5%CA$45.00CA$40.00n/a4
Apr ’25CA$38.75
CA$40.75
+5.2%
5.3%CA$44.00CA$38.00n/a4
Mar ’25CA$40.85
CA$40.75
-0.2%
5.3%CA$44.00CA$38.00n/a4
Feb ’25CA$39.40
CA$40.75
+3.4%
5.3%CA$44.00CA$38.00n/a4
Jan ’25CA$39.27
CA$40.75
+3.8%
5.3%CA$44.00CA$38.00n/a4
Dec ’24CA$35.87
CA$38.75
+8.0%
5.0%CA$41.00CA$36.00n/a4
Nov ’24CA$35.76
CA$38.75
+8.4%
5.0%CA$41.00CA$36.00CA$53.054
Oct ’24CA$34.20
CA$38.75
+13.3%
5.0%CA$41.00CA$36.00CA$51.134
Sep ’24CA$30.50
CA$38.25
+25.4%
3.4%CA$39.00CA$36.00CA$45.684
Aug ’24CA$32.11
CA$38.25
+19.1%
3.4%CA$39.00CA$36.00CA$45.154
Jul ’24CA$31.40
CA$38.25
+21.8%
3.4%CA$39.00CA$36.00CA$41.444
Jun ’24CA$38.57
CA$39.75
+3.1%
3.3%CA$41.00CA$38.00CA$37.654
May ’24CA$39.36
CA$39.75
+1.0%
3.3%CA$41.00CA$38.00CA$38.854
Apr ’24CA$37.79
CA$38.50
+1.9%
2.9%CA$40.00CA$37.00CA$38.754
Mar ’24CA$35.65
CA$38.60
+8.3%
2.6%CA$40.00CA$37.00CA$40.855
Feb ’24CA$36.46
CA$38.60
+5.9%
2.6%CA$40.00CA$37.00CA$39.405
Jan ’24CA$35.57
CA$38.60
+8.5%
2.6%CA$40.00CA$37.00CA$39.275
Dec ’23CA$37.93
CA$37.60
-0.9%
3.6%CA$39.00CA$35.00CA$35.875
Nov ’23CA$35.64
CA$37.60
+5.5%
3.6%CA$39.00CA$35.00CA$35.765

Analyst Forecast: Target price is less than 20% higher than the current share price.

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