Published on 10 Dec 2021 on Simply Wall St. via Yahoo Finance
With Alimentation Couche-Tard Inc. (TSE:ATD) It Looks Like You'll Get What You Pay For
When close to half the companies in Canada have price-to-earnings ratios (or "P/E's") below 12x, you may consider Alimentation Couche-Tard Inc. (TSE:ATD) as a stock to potentially avoid with its 16.7x P/E ratio. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's lofty.
For example, consider that Alimentation Couche-Tard's financial performance has been poor lately as it's earnings have been in decline. One possibility is that the P/E is high because investors think the company will still do enough to outperform the broader market in the near future. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
Check out our latest analysis for Alimentation Couche-Tard