Where Is the Deep Value in Canadian Stocks This Week?
Wednesday, October 14, 2026 · Johnny Hopkins
The Acquirer’s Multiple® Canada All TSX screen gives investors a way to search Canadian-listed companies for value, cash generation and shareholder returns.
This week’s screen contains 87 companies, with a median Acquirer’s Multiple of approximately 7.4x and a median free-cash-flow yield of approximately 12.2%.
At the cheaper end, 63 companies trade below 10x, 49 trade below 8x and 14 trade below 5x.
More than half of the companies in this week’s screen trade below an 8x Acquirer’s Multiple, highlighting a broad range of potentially undervalued businesses across the Canadian market.
Where the Cheapest Opportunities Are Concentrated
The sub-8x group spans several areas of the market, including:
- Insurance, investment services and specialty finance
- Energy exploration, downstream energy and oilfield services
- Automotive parts and consumer-related businesses
- Food and beverage producers and retailers
- Telecommunications, software and technology services
- Industrial distributors, construction materials and packaging
- Healthcare and professional services
- Mining, chemicals and forestry products
- Transportation, hospitality and leisure goods
Insurance and automotive-related businesses are particularly well represented, each accounting for four companies trading below 8x.
Energy also remains prominent, with opportunities across exploration and production, integrated oil and gas, downstream energy and oilfield services.
Technology contributes candidates across software, internet and data services, and technology consulting, while consumer-related businesses appear across food production, retail, leisure goods and hospitality.
The diversity of industries gives Canadian value investors opportunities to investigate beyond the country’s largest banks, energy producers and mining companies.
Cheap—But Are They Producing Cash?
A low valuation becomes more interesting when supported by consistent cash generation.
Among the 49 companies trading below 8x, the median free-cash-flow yield is approximately 15.1%, and all 49 report a positive free-cash-flow yield.
The group’s median five-year return on assets is approximately 10.0%, while 47 companies report a positive shareholder yield.
These figures suggest that many of the statistically cheap Canadian companies are also generating cash and returning capital to shareholders.
The combination of a median free-cash-flow yield above 15% and positive shareholder yields across almost the entire group provides investors with a substantial pool of candidates for further research.
However, high free-cash-flow yields do not necessarily indicate sustainable earnings. Commodity prices, cyclical demand, working-capital movements and temporary improvements in profitability can all influence reported cash generation.
Investors should also examine whether shareholder distributions are supported by recurring cash flow rather than borrowing or asset sales.
Why Canadian Value Stocks Require Additional Research
Canada’s equity market offers exposure to a diverse range of businesses, but investors should consider the different risks affecting each industry.
Energy and mining companies can generate substantial cash flow during favourable commodity cycles, although earnings and valuations may change significantly when prices weaken.
Financial businesses require particular attention because conventional enterprise-value and cash-flow measures can behave differently from those of non-financial companies.
Smaller Canadian-listed companies may also have lower trading liquidity, concentrated customer bases and less comprehensive analyst coverage.
The Acquirer’s Multiple is a starting point for research. Investors should examine balance-sheet strength, cash-flow consistency, capital allocation, competitive advantages and whether recent earnings are representative of longer-term profitability.
Bottom Line
Approximately 56% of this week’s 87 Canada All TSX companies trade below an 8x Acquirer’s Multiple, with 14 companies trading below 5x.
The sub-8x group has a median free-cash-flow yield of approximately 15.1%, with all 49 companies reporting positive free cash flow yields.
The group’s median five-year return on assets is 10.0%, while 47 of the 49 companies report positive shareholder yields.
These measures suggest that the cheaper end of the Canadian market contains a substantial pool of statistically inexpensive, cash-generating businesses across financials, energy, industrials, technology and consumer-related industries.
As always, attractive screening metrics are a starting point rather than a conclusion about investment quality. Investors should assess earnings durability, financial strength and the risks behind each valuation before making investment decisions.
The complete premium screen provides company names, rankings and the underlying valuation, free-cash-flow, shareholder-yield and quality measures.
🔎 ACCESS ALL 4 STOCK SCREENS
In addition to our free U.S. Large-Cap 1000 Screener, subscribers receive access to the complete All Investable, Small and Micro Cap, and Canada All TSX screens—including company rankings and valuation, free-cash-flow, shareholder-yield and quality measures.