Suncor Historical P/E since 2012 = ~13.5 Nov 2 2022 = ~5.5 - Suncor's stock price has "mostly" ping ponged between ~$30 CAD to $45 CAD since 2012.
- In June 2014 Suncor hit $45 / share though the dividend was .23 and TTM earnings were $2.58 / share (now $8.32)
- Average P/E during this period = ~13.5 if you throw out the extreme 2016 reading and count negatives as zero.
- If Suncor grew into its historical earnings P/E it would be $112.32
- If Suncor has the same P/E as June 2014 it would currently be worth 17.44 x 8.32 = $145.10
Point is the "air" is already out of the Suncor stock price. If you believe oil prices have an upward bias this coming 12 months then you might argue that Suncor has some room to grow as they consistently deliver quarter results similar to 2022. Growth in P/E will come from share buybacks.
To argue Suncor should have a P/E ~13.5 is not a hard argument to make with so many less established companies having much much higher multiples based on dubious logic. (SHOP, BYND, PTON anyone?)
When I look at these numbers I am dumbfounded as to why do people throw money at concept stocks that only have imagination returns to shareholders. If you buy Suncor on the other hand you are part owner of a money machine. Right here who would argue SHOP has a better chance of hitting it's all time high 2023 than SU?
Just sayin'.
https://companiesmarketcap.com/suncor-energy/pe-ratio/