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$150.16) is trading above our estimate of fair value (CA$110.08)

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 Ratio12.9x
EarningsCA$648.70m
Market CapCA$8.64b

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 Average29.3x
DOL Dollarama
37.6x9.1%CA$40.8b
ATZ Aritzia
48.7x59.7%CA$4.9b
LNF Leon's Furniture
13.7x5.9%CA$1.8b
GRGD Groupe Dynamite
17.2xn/aCA$2.2b
CTC.A Canadian Tire Corporation
12.9x3.8%CA$8.6b

Price-To-Earnings vs Peers: CTC.A is good value based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (29.3x).

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 12.9xIndustry Avg. 20.1xNo. of Companies3PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CTC.A is good value based on its Price-To-Earnings Ratio (12.9x) compared to the Global Multiline Retail industry average (20.1x).

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 Ratio12.9x
Fair PE Ratio19.9x

Price-To-Earnings vs Fair Ratio: CTC.A is good value based on its Price-To-Earnings Ratio (12.9x) compared to the estimated Fair Price-To-Earnings Ratio (19.9x).

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$150.16
CA$161.55
+7.6%
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$130.00n/a11
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
Nov ’23CA$151.71
CA$207.20
+36.6%
7.6%CA$234.00CA$184.00CA$135.6310

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

Discover undervalued companies

Aritzia

CA$4.9b

Designs, develops, and sells apparels and accessories for women in the United States and Canada.

ATZ

CA$43.81

7D

-3.7%

1Y

82.2%

Reitmans (Canada)

US$94.8m

Primarily engages in the retail sale of women’s specialty apparel in Canada under the Reitmans, Penningtons, and RW&CO brand names.

RET.A

US$2.57

7D

0.4%

1Y

-1.2%

Groupe Dynamite

CA$2.2b

Operates fashion retail stores in Canada and the United States.

GRGD

CA$20.45

7D

n/a

1Y

n/a