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    Is BRP (TSX:DOO) A Bargain On Its Recent Selloff Or Fully Priced?

    Simply Wall St·09/18/2026 05:29:27
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    BRP (TSX:DOO) has attracted investor attention after recent share price volatility, including a decline of about 14% over the past month. This has prompted fresh questions about how the powersports manufacturer is currently valued.

    Over the past year, BRP has seen its share price lose momentum, with a 30 day share price return of about 13.7% down and a year to date share price return of 16.5% down, while the 1 year total shareholder return is 5% down. This signals fading enthusiasm compared with earlier periods and puts the recent CA$82.28 level into sharper focus for valuation minded investors.

    Scan how BRP compares with other consumer stocks that have stumbled recently but still show solid fundamentals using our curated list of 3 high quality undervalued stocks.

    BRP still runs a sizeable powersports and marine operation with CA$9,336.2m in revenue and CA$115m in net income. Yet after the recent share price slide to CA$82.28, is that strength already reflected or mispriced?

    Most Popular Narrative: 15% Undervalued

    BRP's most followed narrative pegs fair value at about CA$97.22, above the recent CA$82.28 close. This puts the current selloff in a different light for anyone weighing long term earnings assumptions against near term tariff worries.

    The rapid expansion of BRP's electric vehicle lineup (notably the Outlander electric ATV and electric motorcycle), combined with modular design efficiencies, positions the company to capture incremental revenue and margin improvement as consumer demand for sustainable, innovative recreational vehicles accelerates amid global electrification and regulatory momentum. (Impacts: topline growth, margin expansion)

    See why 21 investors see BRP as 15% undervalued.

    Result: Fair Value of CA$97.22 (UNDERVALUED)

    Still, that fair value story runs straight into two big issues for BRP: rising tariff related costs and higher uncertainty after fiscal 2027 guidance was suspended.

    Find out about the key risks to this BRP narrative.

    Another View: BRP Looks Expensive On Earnings

    The story flips when you look at BRP through a simple earnings lens. The stock trades on a P/E of 50.9x, compared with a Canadian Leisure peer average of 35.9x and a fair ratio estimate of 32.2x. That signals rich pricing on current profits. How much weight do you give this against the narrative of upside?

    See what the numbers say about this price — find out in our valuation breakdown.

    TSX:DOO P/E Ratio as at Sep 2026
    TSX:DOO P/E Ratio as at Sep 2026

    Next Steps

    Mixed signals on BRP's value story make this a moment to move fast on your own homework and not just the headline takes. To see the balance of potential upside against the issues investors are worried about, start with 3 key rewards and 3 important warning signs.

    Looking for more BRP sized investment ideas?

    If BRP has you rethinking where the real opportunities might be, do not stop here. Put a few more potential winners on your radar while momentum is still shifting.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.