The Globe and Mail attempts to identify Canadian equities trading at
attractive valuations relative to
their sectors, and that have
seen positive upward analyst
revisions, in its Wednesday, Feb. 8, edition. The Globe's guest columnist Khaled Eniba (Thomson Reuters banking
and research specialist) writes in the Eye On Equities column that he screened for companies with a
market cap greater than $500-million that rank equal to or
better than 80 per cent of securities
in their industries across
positive analyst revisions and
sector relative valuations. His relative-valuation
model combines six valuation
ratios into a single measure --
enterprise-value-to-sales; enterprise-value-to-EBITDA (earnings
before interest, taxes, depreciation
and amortization); price-to-earnings;
price-to-operating-cash-low; price-to-book; and
dividend yield to highlight the
best value stocks. He screened for preferred earnings
analyst revisions and sector-relative valuation scores
greater than or equal to 80
(companies ranking equal to or
better than 80 per cent of their
peers across both measures). Stocks matching Mr. Eniba's criteria are Manulife Financial, Celestica, Transcontinental and Great Canadian Gaming.
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