The Globe and Mail attempts to identify reasonably valued Canadian companies with momentum and earnings to reinvest in its Tuesday edition. The Globe's Craig McGee writes in the Number Cruncher column that equity markets have been climbing, underpinned by strong and broadly based earnings growth. The average Canadian company has seen its latest quarter's earnings grow 16 per cent over the same quarter from one year ago. Estimates for next quarter push this figure to almost 28 per cent. Given the strength in prices, however, some investors have been questioning whether valuations are sustainable. Mr. McGee looked to the enterprise-multiple-to-growth ratio in order to search for reasonably valued companies with room to grow. Similar to the price-earnings-to-growth ratio, the EMG ratio compares valuations with growth levels by taking EV/EBITDA (total enterprise value divided by earnings before interest, taxes, depreciation and amortization) and dividing by the firm's sustainable growth rate (also known as reinvestment rate) in order to take growth prospects into account. Mr. McGee recommends CAE, MTY Food Group, Spin Master, West Fraser Timber and ATS Automation.