Canadian Tire Valuation
| CDNAF Stock | USD 140.31 1.06 0.76% |
At this time, the firm appears to be undervalued. Canadian Tire shows a prevailing Real Value of $155.59 per share. The current price of the firm is $140.31. Our model approximates the value of Canadian Tire from analyzing the firm fundamentals such as Profit Margin of 0.06 %, return on equity of 0.18, and Current Valuation of 12.28 B as well as examining its technical indicators and probability of bankruptcy.
Undervalued
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.
The fair value of the Canadian pink sheet is determined by what a typical buyer is willing to pay for full or partial control of Canadian Tire. Since Canadian Tire is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Canadian Pink Sheet. 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 140.31 | Real 155.59 | Hype 140.31 | Naive 140.59 |
The real value of Canadian Pink Sheet, also known as its intrinsic value, is the underlying worth of Canadian Tire Company, which is reflected in its stock price. It is based on Canadian Tire's financial performance, growth prospects, management team, or industry conditions. 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, or news.
Estimating the potential upside or downside of Canadian Tire helps investors to forecast how Canadian pink sheet'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: Canadian Tire Total Value Analysis
Canadian Tire is currently forecasted to have takeover price of 12.28 B with market capitalization of 7.54 B, debt of 3.56 B, and cash on hands of 724.6 M. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Canadian Tire fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
12.28 B | 7.54 B | 3.56 B | 724.6 M |
Canadian Tire Investor Information
About 33.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 1.62. Some equities with similar Price to Book (P/B) outperform the market in the long run. Canadian Tire recorded earning per share (EPS) of 12.64. The entity last dividend was issued on the 30th of January 2023. The firm had 5:1 split on the 16th of December 1983. Based on the measurements of operating efficiency obtained from Canadian Tire's historical financial statements, Canadian Tire is not in a good financial situation at this time. It has a very high probability of going through financial hardship in August.Canadian Tire Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Canadian Tire has an asset utilization ratio of 74.73 percent. This implies that the Company is making $0.75 for each dollar of assets. An increasing asset utilization means that Canadian Tire is more efficient with each dollar of assets it utilizes for everyday operations.Canadian Tire Ownership Allocation
Canadian Tire holds a total of 55.1 Million outstanding shares. 30% of Canadian Tire outstanding shares are owned by other corporate entities. Institutional investors are typically referred to investors that purchase positions in a given stock to benefit from reduced commissions. Consequently, institutional investors are subject to different rules and regulations than regular investors. Please look out for any change in current institutional holding as this could mean something significant has changed at the company or is about to change. Please note that no matter how many assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.Canadian Tire Profitability Analysis
The company reported the revenue of 16.29 B. Net Income was 1.13 B with profit before overhead, payroll, taxes, and interest of 5.48 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Canadian Tire's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Canadian Tire and how it compares across the competition.
About Canadian Tire Valuation
The pink sheet valuation mechanism determines Canadian Tire's current worth on a weekly basis. Our 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.Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada. CANADIAN TIRE operates under Specialty Retail classification in the United States and is traded on OTC Exchange. It employs 13435 people.
8 Steps to conduct Canadian Tire's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Canadian Tire's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Canadian Tire's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Canadian Tire's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Canadian Tire's revenue streams: Identify Canadian Tire's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Canadian Tire's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Canadian Tire's growth potential: Evaluate Canadian Tire's management, business model, and growth potential.
- Determine Canadian Tire's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Canadian Tire's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Canadian Tire Growth Indicators
Investing in growth stocks can be very risky. If the company such as Canadian Tire does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 60.1 M | |
| Quarterly Earnings Growth Y O Y | -0.209 | |
| Forward Price Earnings | 8.6957 | |
| Retained Earnings | 4.7 B |
Complementary Tools for Canadian Pink Sheet analysis
When running Canadian Tire's price analysis, check to measure Canadian Tire's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Tire is operating at the current time. Most of Canadian Tire's value examination focuses on studying past and present price action to predict the probability of Canadian Tire's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Tire's price. Additionally, you may evaluate how the addition of Canadian Tire to your portfolios can decrease your overall portfolio volatility.
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