Canadian National Railway Valuation

Q: What is the Fair Price of CY2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CY2 (€111.7) is trading above our estimate of [[fair value]] (€108.35)

Is CY2 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of CY2 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CY2 (€111.7) is trading above our estimate of fair value (€108.35)

Significantly Below Fair Value: CY2 is trading above our estimate of fair value.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CY2?

Key metric: As CY2 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for CY2. This is calculated by dividing CY2's market cap by their current earnings.
What is CY2's PE Ratio?
PE Ratio	18.4x
Earnings	CA$5.46b
Market Cap	CA$100.40b

CY2 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.1x
Enterprise Value/EBITDA	13.7x
PEG Ratio	5.6x

Price to Earnings Ratio vs Peers

How does CY2's PE Ratio compare to its peers?

The above table shows the PE ratio for CY2 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	23.8x
CSX CSX	19.3x	5.7%	US$70.6b
NSC Norfolk Southern	25.9x	12.9%	US$62.4b
CP Canadian Pacific Kansas City	27.6x	14.1%	CA$100.6b
UNP Union Pacific	22.4x	7.2%	US$151.2b
CY2 Canadian National Railway	18.4x	3.3%	€100.4b

Price-To-Earnings vs Peers: CY2 is good value based on its Price-To-Earnings Ratio (18.4x) compared to the peer average (25.9x).

Price to Earnings Ratio vs Industry

How does CY2's PE Ratio compare vs other companies in the European Transportation Industry?

2 Companies	Price / Earnings	Estimated Growth	Market Cap

2 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CY2 is expensive based on its Price-To-Earnings Ratio (18.4x) compared to the Global Transportation industry average (15.9x).

Price to Earnings Ratio vs Fair Ratio

What is CY2's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CY2 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	18.4x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CY2's Price-To-Earnings Fair Ratio for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.