RE:RE:Bottom Feeding: Finding value in Canadian equitiesI don't own Bombardier or Canaccord. Nor do I plan to buy them. I just want to point out that stock valuation is more complicated than looking at P/E alone.
Bombardier P/E of 16.9 is trailing 12 months P/E. Next year's P/E is 11.
More importantly, you have to evaluate other metrics. Jason Donville likes two: ROE and P/E. ROE is a measure of growth. P/E is a measure of cheapness. ROE divided by P/E tells you how many units of growth you can buy for every unit of price. Bombardier has a ROE of 34% according to Reuters. That's a good number. Donville looks for ROE higher than 20%.
ROE 34%. P/E 11 (next year). That's a decent value.
Again, I don't own Bombardier. I do own MRE.