{"id":677187,"date":"2010-02-26T14:26:00","date_gmt":"2010-02-26T19:26:00","guid":{"rendered":""},"modified":"2026-10-04T11:00:49","modified_gmt":"2026-10-04T15:00:49","slug":"more-to-tsx-value-than-pes","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/677187","title":{"rendered":"More to TSX value than P\/Es"},"content":{"rendered":"<p>When it comes to price\/earnings ratios, the TSX may not be that attractive compared to other major markets. As for that other valuation metric, price-to-book value versus&nbsp; return of equity, it stacks up quite nicely, says George Vasic, UBS strategist.&nbsp;<\/p>\n<p>&quot;One key conclusion that emerges is that while the TSX\u2019s forward P\/E looks expensive relative to other major markets,&quot; said Mr. Vasic, noting Canada&#39;s top benchmark exchange trades at 13.8x vs. 12.7x for the US and 12.1x globally for the non-financials. <\/p>\n<p>&quot;More comprehensive valuation measures show it to be closer to in line. Indeed, the TSX\u2019s P\/BV is very close to the global relationship to ROE, with the US notably above the UK below.&quot;<\/p>\n<p>He added that P\/Es show a range of 9.1x to 18.7x for the seven major global region, while the P\/BV vs. ROE is a more tightly clustered measure. As a result the latere valuation metric is much more robust.<\/p>\n<p>&quot;Indeed, it explains why we have advocated what has been seen as a lofty target of 13,500, which in fact represents fair value (in 12 months) based on the TSX\u2019s own relationship among these variables over the long term,&quot; the strategist said. <\/p>\n<p><a href=\"mailto:dpett@nationalpost.com%20\">David Pett<\/a><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/network.nationalpost.com\/NP\/aggbug.aspx?PostID=400955\" width=\"1\" height=\"1\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>When it comes to price\/earnings ratios, the TSX may not be that attractive compared to other major markets. As for that other valuation metric, price-to-book value versus&nbsp; return of equity, it stacks up quite nicely, says George Vasic, UBS strategist.&nbsp; &quot;One key conclusion that emerges is that while the TSX\u2019s forward P\/E looks expensive relative [&hellip;]<\/p>\n","protected":false},"author":2571,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4821],"tags":[],"class_list":["post-677187","post","type-post","status-publish","format-standard","hentry","category-news"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9NivD-2Qan","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/677187","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/users\/2571"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/comments?post=677187"}],"version-history":[{"count":1,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/677187\/revisions"}],"predecessor-version":[{"id":778369,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/posts\/677187\/revisions\/778369"}],"wp:attachment":[{"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/media?parent=677187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/categories?post=677187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.com\/index\/wp-json\/wp\/v2\/tags?post=677187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}