How should we evaluate TGT compared to Canadian Tire in analyzing their BF P / E ratios from a relative value and historical average perspective ? TGT has a lower P / E multiple , but it is trading at a larger historical premium than it usually does so it is considered relatively overvalued when evaluating its P / E premium / discount level from a historical perspective . Canadian Tire has a lower P / E multiple , and it is trading at a larger historical premium than it usually does , so it is considered relatively undervalued when evaluating its P / E premium / discount level from a historical perspective . Canadian Tire has a lower P / E multiple , but it is trading at a smaller historical discount than it usually does , so it is considered relatively overvalued when evaluating its P / E premium / discount level from a historical perspective . Click to open / close