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 19.99 is considered Undervalued compared with the five-year average of 23.84. The fair price of Canadian Pacific Kansas City Ltd (CP) is between 80.75 to 93.20 according to relative valuation methord. Compared to the current price of 73.92 USD , Canadian Pacific Kansas City Ltd is Undervalued By 8.46%.
Relative Value
Fair Zone
80.75-93.20
Current Price：73.92
8.46%
Undervalued
20.00
PE
1Y
3Y
5Y
Trailing
Forward
14.11
EV/EBITDA
Canadian Pacific Kansas City Ltd. (CP) has a current EV/EBITDA of 14.11. The 5-year average EV/EBITDA is 16.92. The thresholds are as follows: Strongly Undervalued below 12.33, Undervalued between 12.33 and 14.63, Fairly Valued between 19.22 and 14.63, Overvalued between 19.22 and 21.51, and Strongly Overvalued above 21.51. The current Forward EV/EBITDA of 14.11 falls within the Undervalued range.
18.04
EV/EBIT
Canadian Pacific Kansas City Ltd. (CP) has a current EV/EBIT of 18.04. The 5-year average EV/EBIT is 21.51. The thresholds are as follows: Strongly Undervalued below 15.58, Undervalued between 15.58 and 18.54, Fairly Valued between 24.48 and 18.54, Overvalued between 24.48 and 27.44, and Strongly Overvalued above 27.44. The current Forward EV/EBIT of 18.04 falls within the Undervalued range.
5.88
PS
Canadian Pacific Kansas City Ltd. (CP) has a current PS of 5.88. The 5-year average PS is 7.24. The thresholds are as follows: Strongly Undervalued below 5.28, Undervalued between 5.28 and 6.26, Fairly Valued between 8.22 and 6.26, Overvalued between 8.22 and 9.20, and Strongly Overvalued above 9.20. The current Forward PS of 5.88 falls within the Undervalued range.
14.73
P/OCF
Canadian Pacific Kansas City Ltd. (CP) has a current P/OCF of 14.73. The 5-year average P/OCF is 17.12. The thresholds are as follows: Strongly Undervalued below 12.24, Undervalued between 12.24 and 14.68, Fairly Valued between 19.56 and 14.68, Overvalued between 19.56 and 21.99, and Strongly Overvalued above 21.99. The current Forward P/OCF of 14.73 falls within the Historic Trend Line -Fairly Valued range.
26.26
P/FCF
Canadian Pacific Kansas City Ltd. (CP) has a current P/FCF of 26.26. The 5-year average P/FCF is 31.12. The thresholds are as follows: Strongly Undervalued below 18.47, Undervalued between 18.47 and 24.80, Fairly Valued between 37.45 and 24.80, Overvalued between 37.45 and 43.77, and Strongly Overvalued above 43.77. The current Forward P/FCF of 26.26 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 2.03. Compared to its 3-year average P/B ratio of 2.32 , the current P/B ratio is approximately -12.34% higher. Relative to its 5-year average P/B ratio of 3.45, the current P/B ratio is about -41.08% higher. Canadian Pacific Kansas City Ltd (CP) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 2.24%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.34% , the current FCF yield is about -100.00% lower.
2.03
P/B
Median3y
2.32
Median5y
3.45
2.58
FCF Yield
Median3y
2.24
Median5y
2.34
Competitors Valuation Multiple
The average P/S ratio for CP's competitors is , providing a benchmark for relative valuation. Canadian Pacific Kansas City Ltd Corp (CP) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of 3.16%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of CP increased by 2.18% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 23.58 to 25.05.
The secondary factor is the Revenue Growth, contributed 3.16%to the performance.
Overall, the performance of CP in the past 1 year is driven by Margin Expansion. Which is more sustainable.
People Also Watch
FAQ
Is Canadian Pacific Kansas City Ltd (CP) currently overvalued or undervalued?
What is Canadian Pacific Kansas City Ltd (CP) fair value?
How does CP's valuation metrics compare to the industry average?
What is the current P/B ratio for Canadian Pacific Kansas City Ltd (CP) as of Dec 05 2025?
What is the current FCF Yield for Canadian Pacific Kansas City Ltd (CP) as of Dec 05 2025?
What is the current Forward P/E ratio for Canadian Pacific Kansas City Ltd (CP) as of Dec 05 2025?