WHAT ARE WE LOOKING FOR?
Today, let's look at the stocks trading at the greatest price-to-earnings discounts. We'll stick to companies in the S&P/TSX composite and we'll use Thomson ONE's Stock Reports Plus, which is a stock ideas feature inside Thomson Reuters' portfolio management tool used by institutional investors.
MORE ABOUT TODAY'S SCREEN
We looked at cheap P/E stocks earlier this week, but we'll throw some more wrinkles into this today. We'll look at the cheapest P/E stocks based on estimated earnings for the next 12 months, but we'll also look at how great a discount they are trading at, relative to the average of the composite.
As well, we'll look at the company's historical discounts or premiums to the average of the composite over the past five years. In the table, here is what Thomson says each header under “Relative to S&P/TSX composite (5-Year Range)” means:
a) The average value is the average of the weekly comparisons between the company and the index for the past five years (not merely the comparison of the company average to the index average).
b) The high value is the greatest difference between the company and the index measures in the past five years (not merely the comparison of the company high to the index high, as the highs may have occurred at different times).
c) The low value is the smallest difference between the company and the index measures in the past five years (not merely the comparison of the company low to the index low, as the lows may have occurred at different times).
WHAT DID WE FIND OUT?
A few companies are trading at significantly greater-than-usual discounts to the average composite P/E of the past five years, such as Fairfax, Yellow Pages, Lundin Mining, Teranet and Teck Cominco.
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Table: View result set 
