CP Valuation

Canadian Pacific Kansas City Ltd

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75.610

+0.32(0.425%)1D

Overview
Forecast
Valuation
Earnings

CP Relative Valuation

CP'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, CP is overvalued; if below, it's undervalued.

Historical Valuation

Canadian Pacific Kansas City Ltd (CP) is now in the Undervalued zone, suggesting that its current forward PE ratio of 20.61 is considered Undervalued compared with the five-year average of 23.90. The fair price of Canadian Pacific Kansas City Ltd (CP) is between 79.70 to 91.49 according to relative valuation methord. Compared to the current price of 75.29 USD , Canadian Pacific Kansas City Ltd is Undervalued By 5.54%.

Relative Value

Fair Zone

79.70-91.49

Current Price：75.29

5.54%

Undervalued

20.73

Trailing

Forward

14.30

EV/EBITDA

Canadian Pacific Kansas City Ltd. (CP) has a current EV/EBITDA of 14.30. The 5-year average EV/EBITDA is 16.96. The thresholds are as follows: Strongly Undervalued below 12.45, Undervalued between 12.45 and 14.71, Fairly Valued between 19.21 and 14.71, Overvalued between 19.21 and 21.47, and Strongly Overvalued above 21.47. The current Forward EV/EBITDA of 14.30 falls within the Undervalued range.

18.23

EV/EBIT

Canadian Pacific Kansas City Ltd. (CP) has a current EV/EBIT of 18.23. The 5-year average EV/EBIT is 21.52. The thresholds are as follows: Strongly Undervalued below 15.63, Undervalued between 15.63 and 18.58, Fairly Valued between 24.47 and 18.58, Overvalued between 24.47 and 27.42, and Strongly Overvalued above 27.42. The current Forward EV/EBIT of 18.23 falls within the Undervalued range.

6.10

Canadian Pacific Kansas City Ltd. (CP) has a current PS of 6.10. The 5-year average PS is 7.28. The thresholds are as follows: Strongly Undervalued below 5.40, Undervalued between 5.40 and 6.34, Fairly Valued between 8.22 and 6.34, Overvalued between 8.22 and 9.17, and Strongly Overvalued above 9.17. The current Forward PS of 6.10 falls within the Undervalued range.

14.88

P/OCF

Canadian Pacific Kansas City Ltd. (CP) has a current P/OCF of 14.88. The 5-year average P/OCF is 17.15. The thresholds are as follows: Strongly Undervalued below 12.32, Undervalued between 12.32 and 14.73, Fairly Valued between 19.56 and 14.73, Overvalued between 19.56 and 21.97, and Strongly Overvalued above 21.97. The current Forward P/OCF of 14.88 falls within the Historic Trend Line -Fairly Valued range.

26.57

P/FCF

Canadian Pacific Kansas City Ltd. (CP) has a current P/FCF of 26.57. The 5-year average P/FCF is 31.19. The thresholds are as follows: Strongly Undervalued below 18.62, Undervalued between 18.62 and 24.90, Fairly Valued between 37.47 and 24.90, Overvalued between 37.47 and 43.76, and Strongly Overvalued above 43.76. The current Forward P/FCF of 26.57 falls within the Historic Trend Line -Fairly Valued range.

Canadian Pacific Kansas City Ltd (CP) has a current Price-to-Book (P/B) ratio of 2.06. Compared to its 3-year average P/B ratio of 2.35 , the current P/B ratio is approximately -12.45% higher. Relative to its 5-year average P/B ratio of 3.68, the current P/B ratio is about -44.08% higher. Canadian Pacific Kansas City Ltd (CP) has a Forward Free Cash Flow (FCF) yield of approximately 2.63%. Compared to its 3-year average FCF yield of 2.17%, the current FCF yield is approximately 21.20% lower. Relative to its 5-year average FCF yield of 2.31% , the current FCF yield is about 13.50% lower.

2.07

P/B

Median3y

2.35

Median5y

3.68

2.63

FCF Yield

Median3y

2.17

Median5y

2.31

Performance Decomposition

Market capitalization of CP decreased by 11.84% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 25.06 to 33.36.

The secondary factor is the Revenue Growth, contributed 2.66%to the performance.

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

2.66%

3.60B → 3.70B

Revenue Growth

33.12%

25.06 → 33.36

Margin Expansion

-47.62%

44.34 → 23.22

P/E Change

-11.84%