Canadian National Railway Company (CNI) Stock Valuation — PE Analysis
Railroads · NYSE
Current Price
$117.21
PE Ratio (TTM)
21.3x
Intrinsic Value
$132.92
+11.8% margin of safety
COMPETITIVE MOAT
↑Extensive Rail Network Dominance
CN's vast, integrated rail network across North America creates significant barriers to entry. This infrastructure is crucial for efficiently moving bulk commodities and manufactured goods, making it difficult for competitors to replicate.
↑Critical Infrastructure for Key Industries
CN is indispensable for industries like agriculture and energy, as evidenced by recent record grain and propane shipments. This essential role provides pricing power and long-term demand stability.
↑Strategic Partnerships and Growth
Agreements with major players like BHP for new potash projects demonstrate CN's ability to secure long-term, high-volume contracts. This strategic expansion into new resource corridors solidifies its market position.
INVESTMENT RISKS
↓Regulatory and Environmental Scrutiny
The railway industry faces ongoing regulatory oversight and environmental concerns. Changes in regulations or increased environmental compliance costs could impact operational efficiency and profitability.
↓Economic Sensitivity and Commodity Cycles
CN's performance is tied to the health of the broader economy and commodity prices. Downturns in key sectors or significant drops in commodity demand can negatively affect shipment volumes and revenue.
↓Labor Relations and Operational Disruptions
Potential labor disputes or strikes can lead to significant operational disruptions and financial losses. Maintaining positive labor relations is critical for uninterrupted service.
Base case
CNI base case PE valuation
A base case PE valuation for CNI estimates a fair value of about $132.92 per share, against a current price of $117.21. The model assumes 8.2% annual earnings growth, a 21x target PE multiple, and a 10% discount rate.
Intrinsic Value
$132.92
Margin of safety
+11.8%
Expected annual return
+2.5%
Base case assumptions: 8.2% annual earnings growth, 21x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-15.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CNI PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Canadian National Railway Company respond.
Open PE Calculator for CNICompany Overview
Canadian National Railway Company (CNI), together with its subsidiary operations, functions as a key player in the railway and related logistics industry. The firm handles a wide array of freight, including petroleum products and chemicals, agricultural commodities such as grain and fertilizers, various minerals like coal and metals, timber and paper goods, intermodal containers, and finished automobiles. Its services cater to a broad base of clients, from international exporters and importers to retail chains, agricultural growers, and industrial manufacturers. CNI boasts a substantial rail infrastructure, with approximately 19,500 miles of track extending across both Canada and the United States. Additionally, the company provides diverse ancillary services, encompassing marine terminal management (vessels and docks), cargo transshipment and distribution, specialized automotive supply chain solutions, and comprehensive freight management and forwarding. Founded in 1919, Canadian National Railway Company is based in Montreal, Canada.
Financial Metrics — CNI PE Stock Valuation Data
PE Ratio (TTM)
21.3x
PEG Ratio
3.30
Earnings Yield
4.70%
ROE (TTM)
21.9%
Revenue/Share (TTM)
$28.27
Dividend Yield
2.20%
Debt/Equity
1.05x
Frequently Asked Questions
What is the PE ratio of CNI?
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.
Is CNI overvalued based on PE ratio?
CNI's PE of 21.3x combined with a PEG ratio of 3.30 provides a growth-adjusted perspective. A PEG above 2.0 suggests CNI may be richly valued even accounting for growth. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Railroads, a DCF analysis may be more appropriate.
How do I value CNI stock using PE ratio?
To value Canadian National Railway Company using PE: (1) Compare the current PE (21.3x) against the Railroads median to assess relative pricing, (2) check the PEG ratio (3.30) 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.
What is the PEG ratio of CNI?
CNI's PEG ratio is 3.30, calculated by dividing the PE ratio (21.3x) by the expected earnings growth rate. A PEG above 2.0 often signals the stock is priced aggressively relative to its growth trajectory. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CNI stock valuation?
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 21.9%, 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.
Learn More
- See CNI DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value CNI with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.