Canadian Pacific Railway Stock Beta
| CP Stock | CAD 107.78 0.57 0.53% |
Canadian Pacific Railway fundamentals help investors to digest information that contributes to Canadian Pacific's financial success or failures. It also enables traders to predict the movement of Canadian Stock. The fundamental analysis module provides a way to measure Canadian Pacific's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Canadian Pacific stock.
Canadian | Beta |
Canadian Pacific Railway Company Beta Analysis
Canadian Pacific's Beta is one of the most important measures of equity market volatility. Beta can be thought of as asset elasticity or sensitivity to market. In other words, it is a number that shows the relationship of an equity instrument to the financial market in which this instrument is traded. For example, if Beta of equity is 2, it is expected to significantly outperform market when the market is going up and significantly underperform when the market is going down. Similarly, Beta of 1 indicates that an asset and market will generate similar returns over time.
Current Canadian Pacific Beta | 0.79 |
Most of Canadian Pacific's fundamental indicators, such as Beta, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Canadian Pacific Railway is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Canadian Beta Driver Correlations
Understanding the fundamental principles of building solid financial models for Canadian Pacific is extremely important. It helps to project a fair market value of Canadian Stock properly, considering its historical fundamentals such as Beta. Since Canadian Pacific's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Canadian Pacific's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Canadian Pacific's interrelated accounts and indicators.
Click cells to compare fundamentals
In a nutshell, Beta is a measure of individual stock risk relative to the overall volatility of the stock market. and is calculated based on very sound finance theory - Capital Assets Pricing Model (CAPM).However, since Beta is calculated based on historical price movements it may not predict how a firm's stock is going to perform in the future.
| Competition |
In accordance with the recently published financial statements, Canadian Pacific Railway has a Beta of 0.789. This is 42.41% lower than that of the Ground Transportation sector and 42.83% lower than that of the Industrials industry. The beta for all Canada stocks is notably lower than that of the firm.
Canadian Beta Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Canadian Pacific's direct or indirect competition against its Beta to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Canadian Pacific could also be used in its relative valuation, which is a method of valuing Canadian Pacific by comparing valuation metrics of similar companies.Canadian Pacific is currently under evaluation in beta category among its peers.
Canadian Pacific ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Canadian Pacific's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Canadian Pacific's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
As returns on the market increase, Canadian Pacific's returns are expected to increase less than the market. However, during the bear market, the loss of holding Canadian Pacific is expected to be smaller as well.
Canadian Fundamentals
| Return On Equity | 0.0809 | ||||
| Return On Asset | 0.044 | ||||
| Profit Margin | 0.24 % | ||||
| Operating Margin | 0.37 % | ||||
| Current Valuation | 121.51 B | ||||
| Shares Outstanding | 933.35 M | ||||
| Shares Owned By Insiders | 0.02 % | ||||
| Shares Owned By Institutions | 75.84 % | ||||
| Number Of Shares Shorted | 5.21 M | ||||
| Price To Earning | 25.10 X | ||||
| Price To Book | 2.27 X | ||||
| Price To Sales | 6.93 X | ||||
| Revenue | 12.55 B | ||||
| Gross Profit | 4.8 B | ||||
| EBITDA | 6.07 B | ||||
| Net Income | 3.93 B | ||||
| Cash And Equivalents | 451 M | ||||
| Cash Per Share | 1.36 X | ||||
| Total Debt | 22.84 B | ||||
| Debt To Equity | 1.34 % | ||||
| Current Ratio | 0.60 X | ||||
| Book Value Per Share | 47.30 X | ||||
| Cash Flow From Operations | 4.14 B | ||||
| Short Ratio | 3.87 X | ||||
| Earnings Per Share | 3.80 X | ||||
| Price To Earnings To Growth | 2.38 X | ||||
| Target Price | 127.35 | ||||
| Number Of Employees | 20.22 K | ||||
| Beta | 0.79 | ||||
| Market Capitalization | 100.06 B | ||||
| Total Asset | 80.39 B | ||||
| Retained Earnings | 16.42 B | ||||
| Working Capital | (2.71 B) | ||||
| Current Asset | 1.54 B | ||||
| Current Liabilities | 1.45 B | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 0.92 % | ||||
| Net Asset | 80.39 B | ||||
| Last Dividend Paid | 0.76 |
About Canadian Pacific Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Canadian Pacific Railway's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Canadian Pacific using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Canadian Pacific Railway based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Canadian Pacific
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Canadian Pacific position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Canadian Pacific will appreciate offsetting losses from the drop in the long position's value.Moving together with Canadian Stock
Moving against Canadian Stock
| 0.78 | NVDA | NVIDIA CDR | PairCorr |
| 0.76 | TRP | TC Energy Corp | PairCorr |
| 0.75 | TD-PFI | Toronto Dominion Bank | PairCorr |
| 0.67 | MFC | Manulife Financial Corp | PairCorr |
| 0.67 | ENB | Enbridge | PairCorr |
The ability to find closely correlated positions to Canadian Pacific could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Canadian Pacific when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Canadian Pacific - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Canadian Pacific Railway to buy it.
The correlation of Canadian Pacific is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Canadian Pacific moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Canadian Pacific Railway moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Canadian Pacific can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Canadian Pacific Railway. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.