Railroads · NYSE
Current Price
$108.08
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on Canadian National Railway Company with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Canadian National Railway Company, together with its subsidiaries, engages in the rail and related transportation business. The company's portfolio of goods includes petroleum and chemicals, grain and fertilizers, coal, metals and minerals, forest products, intermodal, and automotive products serving exporters, importers, retailers, farmers, and manufacturers. It operates a network of 19,500 route miles of track spanning Canada and the United States. The company also provides vessels and docks, transloading and distribution, automotive logistics, and freight forwarding and transportation management services. Canadian National Railway Company was incorporated in 1919 and is headquartered in Montreal, Canada.
ROIC (TTM)
8.9%
ROE (TTM)
22.0%
FCF Yield
3.75%
Based on trailing twelve-month data, CNI shows a free cash flow per share of N/A and a ROIC of 8.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 3.75% are important context metrics when evaluating CNI's stock valuation relative to peers.
The intrinsic value of CNI depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether CNI is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $108.08. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on Canadian National Railway Company: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Railroads industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting CNI's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Canadian National Railway Company, this means projecting how much free cash flow the Railroads will produce over the next 5-10 years, then discounting those amounts to today's dollars. CNI's ROIC of 8.9% shows moderate capital returns.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For CNI, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
