Railroads · NYSE
Current Price
$84.28
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Canadian Pacific Kansas City Ltd. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Open PE Calculator for CPCanadian Pacific Kansas City Ltd. engages in the provision of rail freight transportation services. It offers rail services linking Canada, the United States and Mexico. The company was founded on June 22, 2001, and is headquartered in Calgary, Canada.
Earnings Yield
4.00%
ROE (TTM)
8.9%
Based on trailing twelve-month data, CP 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 CP reflects how much investors pay per dollar of Canadian Pacific Kansas City Ltd.'s earnings. This metric is most useful when compared to Railroads peers and the company's own historical range.
Whether CP 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 Pacific Kansas City Ltd. 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 CP is priced versus Railroads peers. DCF provides an absolute value based on projected free cash flows. For the most reliable valuation, use PE as a quick comparability screen and DCF for a deeper fundamental analysis. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
