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

March 24, 2025

March 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	41.20	73.44	78.26	509523	19018	5.59	719.2
AQN	Algonquin Power	7.34	10.91	48.68	2837830	5388	6.47	73.2
RCI.B	Rogers Communications	39.21	54.84	39.85	2020755	20977	5.10	12.3
CP	Canadian Pacific Kansas	103.21	127.47	23.51	1746952	96460	0.74	25.9
OTEX	Open Text	37.86	45.58	20.40	1130115	10040	3.85	10.8
CNR	Canadian National Railway	138.40	161.18	16.46	1622327	87815	2.47	19.7
CVE	Cenovus Energy	20.32	23.62	16.25	7885195	37861	3.54	12.2
ABX	Barrick Gold	27.05	31.05	14.77	3782837	47365	2.07	15.5
BNS	Bank of Nova Scotia	68.87	78.76	14.36	4689588	86088	6.16	14.2
MG	Magna International	52.28	59.55	13.90	2480943	14999	5.08	10.4

All data provided as at market close March 20, 2025.

Company Details

Brookfield Infr Partners

BIP.UN:TSX

Close Price

41.20

Our Valuation

73.44

% Difference

78.26

Market Cap ($M)

19018

P/E Ratio

719.2

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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Algonquin Power

AQN:TSX

Close Price

7.34

Our Valuation

10.91

% Difference

48.68

Market Cap ($M)

5388

P/E Ratio

73.2

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

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Rogers Communications

RCI.B:TSX

Close Price

39.21

Our Valuation

54.84

% Difference

39.85

Market Cap ($M)

20977

P/E Ratio

12.3

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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Canadian Pacific Kansas

CP:TSX

Close Price

103.21

Our Valuation

127.47

% Difference

23.51

Market Cap ($M)

96460

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

37.86

Our Valuation

45.58

% Difference

20.40

Market Cap ($M)

10040

P/E Ratio

10.8

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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Canadian National Railway

CNR:TSX

Close Price

138.40

Our Valuation

161.18

% Difference

16.46

Market Cap ($M)

87815

P/E Ratio

19.7

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

20.32

Our Valuation

23.62

% Difference

16.25

Market Cap ($M)

37861

P/E Ratio

12.2

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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Barrick Gold

ABX:TSX

Close Price

27.05

Our Valuation

31.05

% Difference

14.77

Market Cap ($M)

47365

P/E Ratio

15.5

Based in Toronto, Barrick Gold is one of the world's largest gold miners. In 2024, the firm produced nearly 3.9 million attributable ounces of gold and about 430 million pounds of copper. At year-end 2024, Barrick had about two decades of gold reserves along with significant copper reserves. After buying Randgold in 2019 and combining its Nevada mines in a joint venture with competitor Newmont later that year, it operates mines in 19 countries in the Americas, Africa, the Middle East, and Asia.

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Bank of Nova Scotia

BNS:TSX

Close Price

68.87

Our Valuation

78.76

% Difference

14.36

Market Cap ($M)

86088

P/E Ratio

14.2

Bank of Nova Scotia is a global financial services provider. The bank has five business segments: Canadian banking, international banking, global wealth management, global banking and markets, and other. It offers a range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets.

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Magna International

MG:TSX

Close Price

52.28

Our Valuation

59.55

% Difference

13.90

Market Cap ($M)

14999

P/E Ratio

10.4

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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