Comparing P/E Ratios of Canada's Five Big Banks

To find the Price/Earnings (P/E) of a company, do the following:

1.) Go to: http://money.ca.msn.com/investing/

2.) Enter the ticker symbol of your chosen company in the “Name or Symbol” field (note “.to” is not required because Canada is listed as the market already)

3.) P/E is listed is the second entry in the table, in the right hand column under the chart

Repeat for each of the five companies selected, and add it to the table of info:

Company
Net Profit Margin (last 12 months)
Earnings Per Share
Revenue Per Share
Price/Earnings Ratio

Royal Bank of Canada (RY)
13.60%
2.56%
20.68
20.25

Toronto-Dominion Bank (TD)
16.39%
3.49%
19.88
20.09

Bank of Nova Scotia (BNS)
25.32%
3.32%
14.23
14.84

Bank of Montreal (BMO)
16.84%
3.29%
19.28
15.57

Canadian Imperial Bank of Commerce (CM)
12.04%
2.65%
25.97
18.6

A couple of observations about the P/E ratios:

BNS and BMO P/E ratios are relatively lower than RY and TD, indicating greater value in BNS and BMO.

To date - if net profit margin, earnings per share, and P/E ratio are weighted equally, the pecking order among the 5 big banks is as follows:

1.)BNS
2.)BMO
3.)TD
4.)CM
5.)RY

When comparing P/E ratios between industries, Research in Motion (RIM) P/E is 17.66 and Brookfield Properties Management (BPO) is 24.18

Research In Motion (RIM) is the designer and manufacturer of the award-winning BlackBerry® smartphone, used by millions of people around the world. The company also creates solutions for the worldwide mobile communications market, including the software that allows the BlackBerry smartphone to provide mobile access to email, applications, media and the Internet. http://www.rim.com/company/

BPO is “a commercial real estate corporation that owns, develops, and operates premier assets in the downtown cores of high-growth North American cities” http://www.brookfieldproperties.com/corporate/