Canadian Tire Corporation, Limited

TSX:CTC.A Stock Report

Market Cap: CA$8.6b

Canadian Tire Corporation Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • 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 CTC.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CTC.A (CA$152.11) is trading above our estimate of fair value (CA$108.53)

Significantly Below Fair Value: CTC.A is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CTC.A?

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

The above table shows the Price to Earnings ratio for CTC.A. This is calculated by dividing CTC.A's market cap by their current earnings.
What is CTC.A's PE Ratio?
PE Ratio13x
EarningsCA$648.70m
Market CapCA$8.62b

Price to Earnings Ratio vs Peers

How does CTC.A's PE Ratio compare to its peers?

The above table shows the PE ratio for CTC.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average33.8x
DOL Dollarama
36x9.3%CA$39.6b
ATZ Aritzia
69.5x59.7%CA$7.0b
LNF Leon's Furniture
13.4x5.9%CA$1.8b
GRGD Groupe Dynamite
16.5x16.8%CA$2.2b
CTC.A Canadian Tire Corporation
13x3.8%CA$8.6b

Price-To-Earnings vs Peers: CTC.A is good value based on its Price-To-Earnings Ratio (13x) compared to the peer average (33.8x).

Price to Earnings Ratio vs Industry

How does CTC.A's PE Ratio compare vs other companies in the North American Multiline Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
CTC.A 13.0xIndustry Avg. 22.1xNo. of Companies3PE01632486480+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CTC.A is good value based on its Price-To-Earnings Ratio (13x) compared to the Global Multiline Retail industry average (22.1x).

Price to Earnings Ratio vs Fair Ratio

What is CTC.A'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.

CTC.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ratio19.7x

Price-To-Earnings vs Fair Ratio: CTC.A is good value based on its Price-To-Earnings Ratio (13x) compared to the estimated Fair Price-To-Earnings Ratio (19.7x).

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 CTC.A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$152.11
CA$161.55
+6.2%
10.4%CA$192.00CA$125.00n/a11
Dec ’25CA$154.37
CA$161.55
+4.6%
10.4%CA$192.00CA$125.00n/a11
Nov ’25CA$150.11
CA$159.55
+6.3%
10.5%CA$188.00CA$125.00n/a11
Oct ’25CA$161.56
CA$158.73
-1.8%
10.6%CA$190.00CA$125.00n/a11
Sep ’25CA$153.64
CA$158.55
+3.2%
10.5%CA$190.00CA$126.00n/a11
Aug ’25CA$140.62
CA$152.64
+8.5%
11.0%CA$190.00CA$121.00n/a11
Jul ’25CA$135.74
CA$152.91
+12.6%
10.9%CA$190.00CA$121.00n/a11
Jun ’25CA$136.04
CA$156.10
+14.7%
8.9%CA$190.00CA$135.00n/a10
May ’25CA$132.45
CA$152.91
+15.4%
10.2%CA$195.00CA$130.00n/a11
Apr ’25CA$134.70
CA$155.36
+15.3%
10.7%CA$195.00CA$130.00n/a11
Mar ’25CA$138.23
CA$155.55
+12.5%
10.7%CA$195.00CA$130.00n/a11
Feb ’25CA$144.42
CA$167.10
+15.7%
7.6%CA$199.00CA$152.00n/a10
Jan ’25CA$140.72
CA$163.73
+16.3%
9.9%CA$199.00CA$130.00n/a11
Dec ’24CA$142.86
CA$163.73
+14.6%
9.9%CA$199.00CA$130.00CA$154.3711
Nov ’24CA$135.63
CA$178.27
+31.4%
7.1%CA$205.00CA$154.00CA$150.1111
Oct ’24CA$146.05
CA$182.82
+25.2%
6.8%CA$208.00CA$154.00CA$161.5611
Sep ’24CA$159.48
CA$182.82
+14.6%
6.8%CA$208.00CA$154.00CA$153.6411
Aug ’24CA$180.53
CA$199.50
+10.5%
5.8%CA$225.00CA$181.00CA$140.6210
Jul ’24CA$181.12
CA$199.20
+10.0%
6.0%CA$225.00CA$181.00CA$135.7410
Jun ’24CA$164.15
CA$195.09
+18.8%
8.8%CA$225.00CA$154.00CA$136.0411
May ’24CA$177.77
CA$198.73
+11.8%
8.6%CA$225.00CA$154.00CA$132.4511
Apr ’24CA$176.37
CA$197.91
+12.2%
8.6%CA$225.00CA$154.00CA$134.7011
Mar ’24CA$168.70
CA$198.82
+17.9%
8.4%CA$225.00CA$154.00CA$138.2311
Feb ’24CA$163.97
CA$191.40
+16.7%
9.2%CA$234.00CA$164.00CA$144.4210
Jan ’24CA$141.50
CA$191.30
+35.2%
10.9%CA$234.00CA$160.00CA$140.7210
Dec ’23CA$154.12
CA$186.64
+21.1%
13.2%CA$234.00CA$140.00CA$142.8611

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/26 08:28
End of Day Share Price 2024/12/24 00:00
Earnings2024/09/28
Annual Earnings2023/12/30

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Canadian Tire Corporation, Limited is covered by 25 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jim MarroneAccountability Research Corporation
James DurranBarclays
Tamy ChenBMO Capital Markets Equity Research