Canadian Tire Corporation, Limited
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates through three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services compr…
Canadian Tire Corporation, Limited provides a range of retail goods and services in Canada. It operates through three segments: Retail, CT REIT, and Financial Services. The Retail segment retails automotive maintenance products and accessories, parts, and tires, as well as automotive services comprising oil changes, tire installations, and repairs; roadside assistance; electrical, hardware, paint, plumbing, and tool products; cleaning, food and drink, home décor, home essentials, home organization, home environment, kitchen, and pet care products; camping, exercise, hockey, hunting, fishing, seasonal recreation, and team sports and golf products; and backyard living, backyard fun, cycling, gardening, outdoor tools, seasonal, and toy products. This segment offers its products under the Canadian Tire, Canadian Tire Gas+, Pro Hockey Life, Mark's, PartSource, Helly Hansen, Party City, and SportChek brand names. This segment also participates in loyalty programs, as well as sells its products through online. The CT REIT segment operates as a closed-end real estate investment trust that holds a portfolio of properties comprising Canadian Tire stores, Canadian Tire anchored retail developments, industrial properties, mixed-use commercial property, and development properties. The Financial Services segment provides consumer credit cards; in-store financing to consumers; insurance products, and retail and broker deposits; and savings accounts and guaranteed investment certificates. Canadian Tire Corporation, Limited was founded in 1922 and is headquartered in Toronto, Canada.Looks overvalued
Other models: CAD 170.58–357.01 (median 263.80). The recommended value is in line with them.
Why: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Details and the full model are below.
Market price above modeled range
Uses reported dividends of CAD 6.8755 per share from TTM through 30 Jun 2026, with 3% perpetual growth (base growth capped at the terminal rate) and 10.8% discount rates. The range varies growth and discount assumptions by 1 percentage point; it is illustrative, not a statistical confidence interval or investment advice.
Assumptions: growth 3% (limited from 3.62% because the latest annual revenue declined), discount rate 10.80%, terminal growth 3%. See a worked example.
Blended growth assumption: 3.6% (sector default 7.2%, own revenue history 0.0%).
5-year outlook: relative outlook of about 5.1% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Adjust assumptions
Why this model: Dividends are a large share of earnings, so the cash paid to shareholders is the best guide to value.
Compare models- Recommended: Dividend discount model — CAD 90.79 (-55.7%)
-
EPS-based Gordon proxy
— CAD 170.58 (-16.8%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
-
DCF (trailing free cash flow)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
-
FCFF (steady state)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
-
EV/EBITDA (12x)
— CAD 357.01 (+74.1%)
Not used: Used only when free cash flow is far below earnings even after averaging three years; a fixed 12x multiple also ignores sector differences.
-
Fade DCF (10-year growth fade)
— not applicable
Not used: Cannot be computed: free cash flow is zero or negative.
-
EV/Sales (Rule of 40)
— CAD 871.50 (+325.0%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear CAD 71.56 | -186.5% |
| Base CAD 90.79 | -125.8% |
| Bull CAD 123.28 | -66.3% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At CAD 205.05 the market implies perpetual dividend growth of about this rate (discount rate 10.8%).
Compare: the market implies 7.2% a year, this model assumes 3.0%. The market expects more than this model does, which is why it reads as overvalued.
How the Dividend discount model value changes with growth (rows) and discount rate (columns). Green cells are above the current price. Dividend growth cannot exceed the long-run rate, so duplicate capped scenarios are omitted.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| -1.0% | 69.46 | 63.03 | 57.68 | 53.18 | 49.32 |
| 1.0% | 89.03 | 78.91 | 70.86 | 64.30 | 58.85 |
| 3.0% | 122.10 | 104.14 | 90.79 | 80.47 | 72.26 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 60 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 4 of 5 years | 16 / 20 |
| Growth | revenue -1.8% a year | 4 / 20 |
| Balance sheet | net debt 3.2x EBITDA | 10 / 20 |
| Margins | EBITDA margin 13% | 10 / 20 |
Peers in Consumer Discretionary
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| CTC-A.TO (this company) | CAD 205.05 | -125.8% | 15.9 | 1.8 | 3.4% | 60 |
| KGF.L Kingfisher plc | GBP 3.72 | 45.2% | 27.0 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 23.01 | 43.6% | 14.0 | 0.8 | 3.1% | 70 |
| INCH.L Inchcape plc | GBP 6.41 | 37.3% | 9.0 | 1.9 | 4.1% | 80 |
| ZAL.DE Zalando SE | EUR 27.49 | 36.6% | 108.5 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 87.74 | 34.9% | 11.2 | 5.1 | – | 100 |
| LULU Lululemon Athletica | USD 111.77 | 33.3% | 8.9 | 2.6 | – | 100 |
| EXPE Expedia Group | USD 272.48 | 29.6% | 15.8 | 20.2 | 0.7% | 100 |
| BKNG Booking Holdings | USD 168.72 | 28.9% | 17.7 | – | 1.0% | 100 |
| Peer median | 14.9 | 2.6 | ||||
Dividends
Paid in the last 12 months: CAD 7.20 per share · yield 3.51% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 7.200 |
| 2025 | 7.100 |
| 2024 | 7.000 |
| 2023 | 6.900 |
| 2022 | 5.850 |
| 2021 | 4.700 |
Trailing 12-month financials
TTM through 30 Jun 2026 · quarterly EODHD data · data downloaded 04 Nov 2026 18:39
| Revenue | CAD 16,530,700,000 |
|---|---|
| EBITDA | CAD 2,141,500,000 |
| EBIT | CAD 1,366,400,000 |
| Net income | CAD 679,200,000 |
| Free cash flow | CAD 602,700,000 |
| Capital expenditures | CAD 597,600,000 |
| Debt | CAD 8,469,800,000 |
| Cash | CAD 1,542,900,000 |
| Working capital | CAD 5,787,600,000 |
| Shares outstanding | 52,578,003 |
| Reported dividends per share | CAD 6.8755 |