Canadian National Railway Company (CNI) Stock Valuation — PE Analysis
Railroads · NYSE
Current Price
$122.25
PE Ratio (TTM)
21.8x
Intrinsic Value
$154.16
+20.7% margin of safety
COMPETITIVE MOAT
↑Extensive Rail Network Dominance
CNI's vast, integrated rail network across North America creates significant barriers to entry. This extensive reach allows for efficient, long-haul transportation that is difficult for competitors to replicate.
↑High Switching Costs for Shippers
Once a shipper integrates their logistics with CNI's network, the costs and complexities of switching to another rail provider are substantial. This locks in existing customer relationships.
↑Economies of Scale in Operations
CNI's massive scale allows for significant cost efficiencies in operations, maintenance, and capital deployment. This scale advantage translates into superior profitability and pricing flexibility.
INVESTMENT RISKS
↓Economic Downturn Impact on Freight
A significant economic slowdown would directly reduce industrial production and consumer demand, leading to lower freight volumes and revenue for CNI. This cyclicality is inherent to the industry.
↓Labor Relations and Union Negotiations
CNI's operations are heavily reliant on a unionized workforce. Strained labor relations or prolonged strikes can disrupt service, increase costs, and damage reputation.
↓Infrastructure and Maintenance Costs
Maintaining and upgrading a vast rail network requires substantial ongoing capital investment. Unexpected infrastructure failures or rising maintenance expenses can strain financial resources.
Base case
CNI base case PE valuation
A base case PE valuation for CNI estimates a fair value of about $154.16 per share, against a current price of $122.25. The model assumes 10.6% annual earnings growth, a 21.52x target PE multiple, and a 10% discount rate.
Intrinsic Value
$154.16
Margin of safety
+20.7%
Expected annual return
+4.7%
Base case assumptions: 10.6% annual earnings growth, 21.52x target PE, 10% discount rate, 5 year projection. Data as of 2026-09-11.
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)
21.8x
PEG Ratio
2.98
Earnings Yield
4.65%
ROE (TTM)
22.2%
Revenue/Share (TTM)
$29.28
Dividend Yield
2.14%
Debt/Equity
1.03x
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 21.8x combined with a PEG ratio of 2.98 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. 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 (21.8x) against the Railroads median to assess relative pricing, (2) check the PEG ratio (2.98) 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 2.98, calculated by dividing the PE ratio (21.8x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. 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 22.2%, 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 2026-09-11. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.