uploads///cae pe

How Does CAE Compare to Its Peers and ETFs?

By

Nov. 12 2015, Published 9:15 a.m. ET

CAE and its peers

In this article, we’ll compare CAE (CAE) to its industry peers.

The PE (price-to-earnings) ratios of CAE, Lockheed Martin Corporation (LMT), and Embraer (ERJ) are 19.4x, 19.1x, and 36.4x, respectively.

The PBV (price-to-book value) ratios of CAE, L-3 Communications Holdings (LLL), and Embraer are 2.3x, 2.1x, and 1.4x, respectively.

Thus, the company has outperformed its peers based on PBV.

Article continues below advertisement

ETFs that invest in CAE

The PowerShares S&P International Developed Low Volatility ETF (IDLV) invests 0.41% of its holdings in CAE. The ETF tracks an index of about 200 stocks showing low price volatility pulled from the S&P Developed Ex-U.S. and South Korea LargeMidCap BMI Index.

The PowerShares FTSE RAFI Developed Markets Ex-U.S. Small-Mid ETF (PDN) invests 0.12% of its holdings in CAE. The ETF tracks a fundamentally weighted index of small- and mid-cap developed-market securities outside the United States.

The FlexShares Morningstar Developed Markets Ex-U.S. Factor Tilt ETF (TLTD) invests 0.02% of its holdings in CAE. The ETF tracks an index of equities from developed countries outside the United States. The index favors smaller, value-oriented companies.

The Vanguard Total World Stock ETF (VT) invests 0.01% of its holdings in CAE. The ETF tracks a market-cap–weighted index of global stocks covering 98% of domestics and emerging market capitalization.

CAE and its ETFs compared

Now let’s look at CAE compared to its ETFs:

  • The year-to-date price movements of CAE, IDLV, PDN, TLTD, and VT are -13.6%, -4.1%, 0.26%, -0.30%, and 0.06%, respectively.
  • The PE ratios of CAE, IDLV, PDN, TLTD, and VT are 19.4x, 15.5x, 26.4x, 17.8x, and 16.8x, respectively.
  • The PBV ratios of CAE, IDLV, PDN, TLTD, and VT are 2.3x, 1.5x, 1.3x, 1.3x, and 1.7x, respectively.

According to the above findings, the company’s ETFs have outperformed it based on price movement. However, it has outperformed its ETFs based on PE and PBV.

Advertisement

More From Market Realist