Canadian Tire Valuation
| CTC Stock | CAD 220.00 6.27 2.93% |
At this time, the firm appears to be overvalued. Canadian Tire shows a prevailing Real Value of C$211.2 per share. The current price of the firm is C$220.0. Our model approximates the value of Canadian Tire from analyzing the firm fundamentals such as Return On Equity of 0.13, profit margin of 0.04 %, and Current Valuation of 16.67 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Canadian Tire's valuation include:
Price Book 1.9344 | Enterprise Value | Enterprise Value Ebitda 7.5353 | Price Sales 0.6993 | Forward PE 15.3139 |
Overvalued
Today
Please note that Canadian Tire's price fluctuation is very steady at this time. Calculation of the real value of Canadian Tire is based on 3 months time horizon. Increasing Canadian Tire's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Canadian Tire is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Canadian Stock. However, Canadian Tire's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 220.0 | Real 211.2 | Hype 220.28 | Naive 216.46 |
The intrinsic value of Canadian Tire's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Canadian Tire's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Canadian Tire helps investors to forecast how Canadian stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Canadian Tire more accurately as focusing exclusively on Canadian Tire's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Canadian Tire's intrinsic value based on its ongoing forecasts of Canadian Tire's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Canadian Tire's closest peers.
Canadian Tire Cash |
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About Canadian Tire Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Canadian Tire. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Canadian Tire based exclusively on its fundamental and basic technical indicators. By analyzing Canadian Tire's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Canadian Tire's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Canadian Tire. We calculate exposure to Canadian Tire's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Canadian Tire's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 6.5 B | 6.8 B | |
| Pretax Profit Margin | 0.07 | 0.05 | |
| Operating Profit Margin | 0.11 | 0.07 | |
| Net Profit Margin | 0.05 | 0.03 | |
| Gross Profit Margin | 0.31 | 0.17 |
Canadian Tire Quarterly Retained Earnings |
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Other Information on Investing in Canadian Stock
Canadian Tire financial ratios help investors to determine whether Canadian Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Canadian with respect to the benefits of owning Canadian Tire security.