Undervalued 20 undervalued large cap stocks on the TSX
What are we looking for?
Artificial Intelligence at Report on Business creates a fundamental price valuation for every Canadian stock after the markets close each day. Then it sorts them out to look for potentially underpriced winners.
The screen
Despite the fact there are only 70 large caps in Canada (8 per cent of the TSX), these companies are household names. Large caps are valued at more than $2-billion and are attractive for investors because they are typically lower-risk, more liquid and commonly owned by institutions.
- AI at ROB analyzed all large caps to find differences between their latest traded values and their estimated valuations.
- This analysis helps investors find investment opportunities by taking advantage of the gaps between a company’s intrinsic value and its current value.
- Valuations are generated using a proprietary algorithm from as many as six data calculations with an approach that has been historically correct 78 per cent of the time.
What we found
Underpriced larg cap stocks
| TICKER | SHORTNAME | LAST | VALUATION | $DIF | %DIF | AVG VOL | CAP ($M) |
| CDAY-T | Ceridian HCM Holding | 77.62 | 95.18 | 17.56 | 22.63 | 20,625 | 12,241 |
| BIP-UN-T | Brookfield Infr Partners | 48.63 | 55.86 | 7.23 | 14.87 | 296,156 | 22,292 |
| FFH-T | Fairfax Finl Hldgs | 934.70 | 1,065.27 | 130.57 | 13.97 | 32,016 | 23,686 |
| CM-T | Canadian Imperial Bank | 56.43 | 63.82 | 7.39 | 13.09 | 2,702,312 | 51,223 |
| FNV-T | Franco-Nevada | 212.37 | 238.45 | 26.08 | 12.28 | 317,394 | 40,818 |
| NTR-T | Nutrien | 81.13 | 90.90 | 9.77 | 12.04 | 1,187,290 | 43,811 |
| BAM-T | Brookfield Asset Mgmt | 42.77 | 47.84 | 5.07 | 11.85 | 923,359 | 17,640 |
| IVN-T | Ivanhoe Mines | 11.09 | 12.40 | 1.31 | 11.80 | 1,651,321 | 13,648 |
| SU-T | Suncor Energy | 38.87 | 43.41 | 4.54 | 11.67 | 8,448,231 | 51,736 |
| OTEX-T | Open Text | 54.47 | 60.64 | 6.17 | 11.32 | 674,099 | 14,742 |
| SAP-T | Saputo | 36.09 | 39.97 | 3.88 | 10.76 | 362,628 | 15,160 |
| TD-T | Toronto-Dominion Bank | 82.33 | 91.05 | 8.72 | 10.59 | 6,522,791 | 150,096 |
| BMO-T | Bank of Montreal | 118.91 | 131.43 | 12.52 | 10.53 | 2,878,002 | 82,198 |
| T-T | TELUS | 27.74 | 30.38 | 2.64 | 9.53 | 1,999,003 | 39,946 |
| CHP-UN-T | Choice Properties REIT | 14.41 | 15.75 | 1.34 | 9.30 | 260,677 | 10,428 |
| ARX-T | ARC Resources | 17.03 | 18.47 | 1.44 | 8.47 | 3,036,427 | 10,545 |
| BNS-T | Bank of Nova Scotia | 66.52 | 71.99 | 5.47 | 8.22 | 3,075,191 | 79,757 |
| AEM-T | Agnico Eagle Mines | 76.96 | 83.13 | 6.17 | 8.01 | 1,256,863 | 36,206 |
| POW-T | Power Corp of Canada | 36.13 | 38.98 | 2.85 | 7.90 | 2,613,127 | 24,334 |
| NCM-T | Newcrest Mining | 25.53 | 27.39 | 1.86 | 7.28 | 87,102 | 22,876 |
Source: StockCalc
The list is sorted by stocks with the greatest percentage difference between valuation and price.