CNR

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CNR is a foundational stock and I got in in March. I would like to add to my position. Last week the RSI was below 30 and is hover just above it. But am also looking at the P/E which is 27. How does this P/E compare with historical values? Is it still too expensive at $131?

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Asked on February 1, 2021 9:02 am
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HI Chris,

See attached chart for historical P/E ratio - as you can see it is trading above average. However, I caution anyone using historical P/E as a good gage of valuations this year - why? Because the pandemic has significantly impacted profitability this past year and P/E is backwards looking. Many companies have inflated P/E ratios, so this is not the best barometer. On a forward P/E basis it is actually trading close to historical averages. Still however, impacted somewhat by the pandemic.

Mat

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Posted by Mathieu Litalien
Answered on February 1, 2021 11:22 am
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HI Chris,

See attached chart for historical P/E ratio - as you can see it is trading above average. However, I caution anyone using historical P/E as a good gage of valuations this year - why? Because the pandemic has significantly impacted profitability this past year and P/E is backwards looking. Many companies have inflated P/E ratios, so this is not the best barometer. On a forward P/E basis it is actually trading close to historical averages. Still however, impacted somewhat by the pandemic.

Mat

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Posted by Mathieu Litalien
Answered on February 1, 2021 11:22 am
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