CNI PE Ratio & Valuation,Is CNI Overvalued

CNI Relative Valuation

CNI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, CNI is overvalued; if below, it's undervalued.

Historical Valuation

Canadian National Railway Co (CNI) is now in the Undervalued zone, suggesting that its current forward PE ratio of 17.31 is considered Undervalued compared with the five-year average of 20.63. The fair price of Canadian National Railway Co (CNI) is between 106.99 to 127.19 according to relative valuation methord. Compared to the current price of 96.67 USD , Canadian National Railway Co is Undervalued By 9.65%.

Relative Value

Fair Zone

106.99-127.19

Current Price：96.67

9.65%

Undervalued

17.31

11.96

EV/EBITDA

Canadian National Railway Co. (CNI) has a current EV/EBITDA of 11.96. The 5-year average EV/EBITDA is 13.74. The thresholds are as follows: Strongly Undervalued below 11.30, Undervalued between 11.30 and 12.52, Fairly Valued between 14.95 and 12.52, Overvalued between 14.95 and 16.17, and Strongly Overvalued above 16.17. The current Forward EV/EBITDA of 11.96 falls within the Undervalued range.

15.50

EV/EBIT

Canadian National Railway Co. (CNI) has a current EV/EBIT of 15.50. The 5-year average EV/EBIT is 17.62. The thresholds are as follows: Strongly Undervalued below 14.50, Undervalued between 14.50 and 16.06, Fairly Valued between 19.18 and 16.06, Overvalued between 19.18 and 20.75, and Strongly Overvalued above 20.75. The current Forward EV/EBIT of 15.50 falls within the Undervalued range.

4.80

Canadian National Railway Co. (CNI) has a current PS of 4.80. The 5-year average PS is 6.00. The thresholds are as follows: Strongly Undervalued below 4.47, Undervalued between 4.47 and 5.24, Fairly Valued between 6.77 and 5.24, Overvalued between 6.77 and 7.53, and Strongly Overvalued above 7.53. The current Forward PS of 4.80 falls within the Undervalued range.

11.79

P/OCF

Canadian National Railway Co. (CNI) has a current P/OCF of 11.79. The 5-year average P/OCF is 14.21. The thresholds are as follows: Strongly Undervalued below 10.88, Undervalued between 10.88 and 12.54, Fairly Valued between 15.88 and 12.54, Overvalued between 15.88 and 17.55, and Strongly Overvalued above 17.55. The current Forward P/OCF of 11.79 falls within the Undervalued range.

20.76

P/FCF

Canadian National Railway Co. (CNI) has a current P/FCF of 20.76. The 5-year average P/FCF is 26.65. The thresholds are as follows: Strongly Undervalued below 19.23, Undervalued between 19.23 and 22.94, Fairly Valued between 30.35 and 22.94, Overvalued between 30.35 and 34.06, and Strongly Overvalued above 34.06. The current Forward P/FCF of 20.76 falls within the Undervalued range.

Canadian National Railway Co (CNI) has a current Price-to-Book (P/B) ratio of 4.00. Compared to its 3-year average P/B ratio of 4.79 , the current P/B ratio is approximately -16.45% higher. Relative to its 5-year average P/B ratio of 4.85, the current P/B ratio is about -17.48% higher. Canadian National Railway Co (CNI) has a Forward Free Cash Flow (FCF) yield of approximately 4.06%. Compared to its 3-year average FCF yield of 3.77%, the current FCF yield is approximately 7.74% lower. Relative to its 5-year average FCF yield of 3.65% , the current FCF yield is about 11.23% lower.

4.00

P/B

Median3y

4.79

Median5y

4.85

4.06

FCF Yield

Median3y

3.77

Median5y

3.65

Competitors Valuation Multiple

The average P/S ratio for CNI's competitors is 4.82, providing a benchmark for relative valuation. Canadian National Railway Co Corp (CNI) exhibits a P/S ratio of 4.80, which is -0.59% above the industry average. Given its robust revenue growth of 1.34%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of CNI decreased by 7.50% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 26.40 to 27.35.

The secondary factor is the Revenue Growth, contributed 1.34%to the performance.

Overall, the performance of CNI in the past 1 year is driven by Margin Expansion. Which is more sustainable.

1.34%

4.11B → 4.17B

Revenue Growth

3.60%

26.40 → 27.35

Margin Expansion

-12.44%

21.38 → 18.72

P/E Change

-7.50%

104.51 → 96.67

Mkt Cap Growth

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Frequently Asked Questions

Is Canadian National Railway Co (CNI) currently overvalued or undervalued?

What is Canadian National Railway Co (CNI) fair value?

CNI's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Canadian National Railway Co (CNI) is between 106.99 to 127.19 according to relative valuation methord.

How does CNI's valuation metrics compare to the industry average?

What is the current P/B ratio for Canadian National Railway Co (CNI) as of Jan 08 2026?

As of Jan 08 2026, Canadian National Railway Co (CNI) has a P/B ratio of 4.00. This indicates that the market values CNI at 4.00 times its book value.

What is the current FCF Yield for Canadian National Railway Co (CNI) as of Jan 08 2026?

As of Jan 08 2026, Canadian National Railway Co (CNI) has a FCF Yield of 4.06%. This means that for every dollar of Canadian National Railway Co’s market capitalization, the company generates 4.06 cents in free cash flow.

What is the current Forward P/E ratio for Canadian National Railway Co (CNI) as of Jan 08 2026?

As of Jan 08 2026, Canadian National Railway Co (CNI) has a Forward P/E ratio of 17.31. This means the market is willing to pay $17.31 for every dollar of Canadian National Railway Co’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Canadian National Railway Co (CNI) as of Jan 08 2026?

As of Jan 08 2026, Canadian National Railway Co (CNI) has a Forward P/S ratio of 4.80. This means the market is valuing CNI at $4.80 for every dollar of expected revenue over the next 12 months.

CNI Valuation