Undervalued Stocks in the S&P/TSX Composite Index April 2025

April 21, 2025

April 2025

BIP.UN:TSE

S&P/TSX Composite Index

The S&P/TSX Composite Index is a Canadian index that represents roughly 70% of the total market capitalization on the Toronto Stock Exchange, with about 250 companies included in it.

Our Valuation

A stock is considered undervalued if it trades at a discount to our valuation. To determine a stock’s intrinsic value, we developed an algorithm that uses 6 valuation models to determine the value of a company.* To learn more about stockcalc’s valuation methods, click here.

Undervalued stocks in the S&P/TSX Composite Index

Stocks in this category are held primarily for potential income and capital appreciation.

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Symbol	Name	Close Price ($)	Valuation ($)	Difference (%)	Average Vol (30D)	Market Cap ($M)	Yield (%)	P/E Ratio
BIP.UN	Brookfield Infr Partners	38.64	59.99	55.25	636470	17836	5.95	692.0
RCI.B	Rogers Communications	35.84	54.70	52.62	2725701	19174	5.58	11.2
MG	Magna International	44.61	63.15	41.55	1382386	12799	5.95	9.1
AQN	Algonquin Power	7.47	10.27	37.49	2711043	5483	5.65	76.4
SHOP	Shopify	116.03	141.09	21.60	3145383	151014	0.00	53.6
CP	Canadian Pacific Kansas	103.16	122.58	18.82	2132159	96413	0.74	25.9
OTEX	Open Text	35.35	41.39	17.10	1106147	9375	4.11	10.3
BCE	BCE	30.47	35.21	15.57	4541013	27798	13.09	169.3
CNR	Canadian National Railway	137.31	157.92	15.01	1495310	87123	2.49	19.6
CVE	Cenovus Energy	16.75	18.96	13.21	7010921	31209	5.10	10.0

All data provided as at market close April 16, 2025.

Company Details

Brookfield Infr Partners

BIP.UN:TSX

Close Price

38.64

Our Valuation

59.99

% Difference

55.25

Market Cap ($M)

17836

P/E Ratio

692.0

Brookfield Infrastructure Partners LP is a Bermuda exempted limited partnership that owns and operates quality, long-life assets that generate stable cash flows, by virtue of barriers to entry or other characteristics that tend to appreciate in value over time. It focuses on acquiring infrastructure assets that have low maintenance capital costs and high barriers to entry. The company's segments consist of Utilities, Transport, Midstream, and Data.

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Rogers Communications

RCI.B:TSX

Close Price

35.84

Our Valuation

54.70

% Difference

52.62

Market Cap ($M)

19174

P/E Ratio

11.2

Rogers Communications is the largest wireless service provider in Canada, with its more than 11 million subscribers equating to one third of the total Canadian market. Its wireless business accounted for more than half of total revenue and has increasingly been providing a bigger portion of total company sales over the last several years.

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Magna International

MG:TSX

Close Price

44.61

Our Valuation

63.15

% Difference

41.55

Market Cap ($M)

12799

P/E Ratio

9.1

Magna International prides itself on an entrepreneurial culture and a corporate constitution that outlines the distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2024, 48% of Magna's USD 42.

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Algonquin Power

AQN:TSX

Close Price

7.47

Our Valuation

10.27

% Difference

37.49

Market Cap ($M)

5483

P/E Ratio

76.4

Algonquin Power & Utilities Corp is a Canada-based diversified international generation, transmission, and distribution company.

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Shopify

SHOP:TSX

Close Price

116.03

Our Valuation

141.09

% Difference

21.60

Market Cap ($M)

151014

P/E Ratio

53.6

Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.

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Canadian Pacific Kansas

CP:TSX

Close Price

103.16

Our Valuation

122.58

% Difference

18.82

Market Cap ($M)

96413

P/E Ratio

25.9

Canadian Pacific Kansas City is a Class I railroad operating on track that spans across most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CPKC operates new single-linehaul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross-border and intra-Mexico freight via operating concessions on more than 3,000 miles of rail in Mexico.

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Open Text

OTEX:TSX

Close Price

35.35

Our Valuation

41.39

% Difference

17.10

Market Cap ($M)

9375

P/E Ratio

10.3

Open Text Corp is engaged in the design, development, marketing, and sale of Information Management software and solutions. Its software allows clients to archive, aggregate, retrieve, and search unstructured information (such as documents, e-mail, and presentations). Its platform and services provide secure and scalable solutions for enterprises, SMBs, governments, and consumers around the world.

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BCE

BCE:TSX

Close Price

30.47

Our Valuation

35.21

% Difference

15.57

Market Cap ($M)

27798

P/E Ratio

169.3

BCE provides wireless, broadband, television, and landline phone services in Canada. It is one of the Big Three national wireless carriers, with over 10 million customers constituting about 30% of the market. It is also the incumbent local exchange carrier-the legacy telephone provider-throughout much of the eastern half of Canada, including in the most populous Canadian provinces: Ontario and Quebec. BCE has a media segment that holds television, radio, and digital media assets.

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Canadian National Railway

CNR:TSX

Close Price

137.31

Our Valuation

157.92

% Difference

15.01

Market Cap ($M)

87123

P/E Ratio

19.6

Canadian National's railway spans Canada from coast to coast and extends through Chicago to the Gulf of Mexico. In 2024, CN generated CAD 17 billion in revenue by hauling intermodal containers (22% of consolidated revenue), petroleum and chemicals (20%), grain and fertilizers (20%), forest products (11%), metals and minerals (12%), automotive shipments (5%), and coal (5%). Other items constitute the remaining revenue.

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Cenovus Energy

CVE:TSX

Close Price

16.75

Our Valuation

18.96

% Difference

13.21

Market Cap ($M)

31209

P/E Ratio

10.0

Cenovus Energy Inc is an integrated oil company, focused on creating value through the development of its oil sands assets. The company also engages in production of conventional crude oil, natural gas liquids, and natural gas in Alberta, Canada, with refining operations in the U.S. Net upstream production averaged 786 thousand barrels of oil equivalent per day in 2022.

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