Canadian National Railway Company

TSX:CNR Stock Report

Market Cap: CA$100.3b

Canadian National Railway Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 CNR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CNR (CA$161.37) is trading above our estimate of fair value (CA$159.32)

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

CNR 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/Revenue7.1x
Enterprise Value/EBITDA13.7x
PEG Ratio5.8x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CNR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.2x
CP Canadian Pacific Kansas City
31.6x13.2%CA$109.3b
TFII TFI International
26.7x23.3%CA$16.9b
CSX CSX
18.7x5.5%US$66.0b
NSC Norfolk Southern
31.8x19.8%US$56.4b
CNR Canadian National Railway
18.6x3.2%CA$100.3b

Price-To-Earnings vs Peers: CNR is good value based on its Price-To-Earnings Ratio (18.6x) compared to the peer average (27.2x).

Price to Earnings Ratio vs Industry

How does CNR's PE Ratio compare vs other companies in the North American Transportation Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.1%
 n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.1%
 n/an/an/a
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Price-To-Earnings vs Industry: CNR is good value based on its Price-To-Earnings Ratio (18.6x) compared to the North American Transportation industry average (29.5x).

Price to Earnings Ratio vs Fair Ratio

What is CNR'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.

CNR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.6x
Fair PE Ratio17.3x

Price-To-Earnings vs Fair Ratio: CNR is expensive based on its Price-To-Earnings Ratio (18.6x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).

Analyst Price Targets

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

The above table shows the analyst CNR forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$161.37
CA$175.33
+8.7%
6.8%CA$210.00CA$158.00n/a21
Sep ’25CA$158.79
CA$178.95
+12.7%
6.2%CA$210.00CA$158.00n/a21
Aug ’25CA$157.05
CA$178.95
+13.9%
6.2%CA$210.00CA$158.00n/a21
Jul ’25CA$161.66
CA$183.54
+13.5%
6.2%CA$210.00CA$158.00n/a22
Jun ’25CA$173.50
CA$183.86
+6.0%
6.3%CA$210.00CA$158.00n/a22
May ’25CA$166.50
CA$183.26
+10.1%
6.7%CA$210.00CA$158.00n/a22
Apr ’25CA$178.51
CA$178.99
+0.3%
7.5%CA$210.00CA$155.00n/a22
Mar ’25CA$176.69
CA$176.13
-0.3%
6.7%CA$210.00CA$155.00n/a22
Feb ’25CA$169.95
CA$175.22
+3.1%
6.9%CA$210.00CA$155.00n/a22
Jan ’25CA$166.55
CA$166.37
-0.1%
6.2%CA$195.00CA$152.00n/a22
Dec ’24CA$160.23
CA$166.05
+3.6%
6.1%CA$195.00CA$152.00n/a22
Nov ’24CA$147.93
CA$166.29
+12.4%
6.1%CA$195.00CA$151.00n/a22
Oct ’24CA$147.09
CA$170.02
+15.6%
6.4%CA$199.00CA$151.00n/a22
Sep ’24CA$153.91
CA$170.43
+10.7%
6.5%CA$199.00CA$151.00CA$158.7921
Aug ’24CA$158.74
CA$169.95
+7.1%
6.8%CA$199.00CA$151.00CA$157.0521
Jul ’24CA$160.42
CA$175.65
+9.5%
6.6%CA$200.00CA$151.00CA$161.6620
Jun ’24CA$154.77
CA$176.35
+13.9%
6.9%CA$200.00CA$151.00CA$173.5020
May ’24CA$162.35
CA$174.26
+7.3%
6.5%CA$192.00CA$151.00CA$166.5019
Apr ’24CA$159.47
CA$170.79
+7.1%
7.0%CA$190.00CA$149.00CA$178.5119
Mar ’24CA$157.21
CA$171.05
+8.8%
7.1%CA$190.00CA$145.00CA$176.6919
Feb ’24CA$158.61
CA$171.05
+7.8%
7.1%CA$190.00CA$145.00CA$169.9519
Jan ’24CA$160.84
CA$170.47
+6.0%
7.0%CA$190.00CA$145.00CA$166.5519
Dec ’23CA$172.67
CA$167.78
-2.8%
6.1%CA$184.00CA$145.00CA$160.2318
Nov ’23CA$160.76
CA$167.78
+4.4%
6.1%CA$184.00CA$145.00CA$147.9318
Oct ’23CA$149.18
CA$162.76
+9.1%
6.7%CA$178.00CA$140.00CA$147.0917
Sep ’23CA$154.38
CA$162.47
+5.2%
6.5%CA$178.00CA$140.00CA$153.9117

Analyst Forecast: Target price is less than 20% higher than the current share price.

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