Canadian Pacific Kansas City Limited

TSX:CP Stock Report

Market Cap: CA$95.4b

Canadian Pacific Kansas City Valuation

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

Valuation Score

3/6

Valuation Score 3/6

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

Below Fair Value: CP (CA$103.8) is trading below our estimate of fair value (CA$130.09)

Significantly Below Fair Value: CP is trading below fair value by more than 20%.

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CP. This is calculated by dividing CP's market cap by their current earnings.
What is CP's PE Ratio?
PE Ratio27.4x
EarningsCA$3.54b
Market CapCA$95.43b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.5x
CNR Canadian National Railway
16.8x4.3%CA$91.1b
TFII TFI International
24.9x22.2%CA$17.3b
CSX CSX
16.8x5.7%US$60.9b
601816 Beijing-Shanghai High-Speed Railway
23.5x11.5%CN¥297.6b
CP Canadian Pacific Kansas City
27.4x13.8%CA$95.4b

Price-To-Earnings vs Peers: CP is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (20.5x).

Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CP 27.4xIndustry Avg. 26.9xNo. of Companies5PE01224364860+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: CP is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the North American Transportation industry average (26.9x).

Price to Earnings Ratio vs Fair Ratio

What is CP'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.

CP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.4x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: CP is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).

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 CP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$103.80
CA$127.35
+22.7%
6.0%CA$138.00CA$100.00n/a20
Dec ’25CA$107.11
CA$127.35
+18.9%
6.1%CA$139.00CA$100.00n/a20
Nov ’25CA$107.56
CA$127.30
+18.4%
6.1%CA$139.00CA$100.00n/a20
Oct ’25CA$113.57
CA$126.75
+11.6%
6.3%CA$137.00CA$100.00n/a20
Sep ’25CA$111.87
CA$126.65
+13.2%
6.1%CA$136.00CA$100.00n/a20
Aug ’25CA$111.51
CA$125.38
+12.4%
7.5%CA$136.00CA$100.00n/a21
Jul ’25CA$107.74
CA$123.23
+14.4%
7.4%CA$133.00CA$100.00n/a22
Jun ’25CA$108.49
CA$123.23
+13.6%
7.4%CA$133.00CA$100.00n/a22
May ’25CA$106.76
CA$123.36
+15.6%
7.5%CA$133.00CA$100.00n/a22
Apr ’25CA$119.30
CA$119.57
+0.2%
7.6%CA$136.00CA$100.00n/a21
Mar ’25CA$116.98
CA$117.46
+0.4%
6.2%CA$131.00CA$100.00n/a22
Feb ’25CA$111.37
CA$116.09
+4.2%
6.4%CA$127.00CA$95.00n/a22
Jan ’25CA$104.84
CA$113.76
+8.5%
7.2%CA$128.00CA$95.00n/a21
Dec ’24CA$100.99
CA$113.38
+12.3%
7.1%CA$128.00CA$95.00CA$107.1121
Nov ’24CA$99.32
CA$113.71
+14.5%
6.9%CA$128.00CA$95.00CA$107.5621
Oct ’24CA$100.96
CA$118.19
+17.1%
7.2%CA$133.00CA$95.00CA$113.5721
Sep ’24CA$109.32
CA$119.10
+8.9%
6.4%CA$133.00CA$95.00CA$111.8720
Aug ’24CA$107.97
CA$119.05
+10.3%
6.5%CA$133.00CA$94.00CA$111.5120
Jul ’24CA$107.00
CA$117.25
+9.6%
6.6%CA$128.00CA$94.00CA$107.7420
Jun ’24CA$102.63
CA$117.53
+14.5%
7.1%CA$130.00CA$93.00CA$108.4919
May ’24CA$107.40
CA$117.29
+9.2%
7.6%CA$130.00CA$93.00CA$106.7617
Apr ’24CA$104.07
CA$116.06
+11.5%
7.1%CA$126.00CA$93.00CA$119.3017
Mar ’24CA$104.68
CA$115.24
+10.1%
7.4%CA$126.00CA$91.00CA$116.9817
Feb ’24CA$103.62
CA$114.82
+10.8%
7.6%CA$126.00CA$89.00CA$111.3717
Jan ’24CA$100.95
CA$111.88
+10.8%
9.7%CA$130.00CA$89.00CA$104.8417
Dec ’23CA$110.83
CA$109.44
-1.3%
8.6%CA$126.00CA$89.00CA$100.9916

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/20 22:59
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Canadian Pacific Kansas City Limited is covered by 62 analysts. 27 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Will ChienAccountability Research Corporation
Mauro SuarezAlliance Global Partners
John EadeArgus Research Company