Railroads · NYSE
Current Price
$108.08
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Canadian National Railway Company with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
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.
Earnings Yield
5.19%
ROE (TTM)
22.0%
Based on trailing twelve-month data, CNI has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of CNI reflects how much investors pay per dollar of Canadian National Railway Company's earnings. This metric is most useful when compared to Railroads peers and the company's own historical range.
Whether CNI is overvalued depends on comparing its PE ratio to Railroads peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Canadian National Railway Company using PE: (1) Compare the current PE against the Railroads median to assess relative pricing, (2) check the PEG ratio to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how CNI is priced versus Railroads peers. DCF provides an absolute value based on projected free cash flows. For CNI, with a strong ROE of 22.0%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
