Canadian Pacific Railway Stock Current Valuation
| CP Stock | USD 79.82 0.98 1.24% |
Valuation analysis of Canadian Pacific Railway helps investors to measure Canadian Pacific's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. As of 01/30/2025, Enterprise Value is likely to grow to about 51.6 B, though Enterprise Value Over EBITDA is likely to grow to (179.36). Fundamental drivers impacting Canadian Pacific's valuation include:
Fairly Valued
Today
Please note that Canadian Pacific's price fluctuation is very steady at this time. Calculation of the real value of Canadian Pacific Railway is based on 3 months time horizon. Increasing Canadian Pacific's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Canadian Pacific's intrinsic value may or may not be the same as its current market price of 79.82, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 79.82 | Real 82.79 | Target 87.26 | Hype 81.52 | Naive 81.71 |
The intrinsic value of Canadian Pacific's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Canadian Pacific's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Canadian Pacific Railway helps investors to forecast how Canadian stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Canadian Pacific more accurately as focusing exclusively on Canadian Pacific's fundamentals will not take into account other important factors: Canadian Pacific Railway Company Current Valuation Analysis
Canadian Pacific's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Canadian Pacific Current Valuation | 88.85 B |
Most of Canadian Pacific's fundamental indicators, such as Current Valuation, 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 Current Valuation 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 Current Valuation. 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
Canadian Current Valuation Historical Pattern
Today, most investors in Canadian Pacific Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Canadian Pacific's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Canadian Pacific current valuation as a starting point in their analysis.
Canadian Pacific Current Valuation |
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Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Canadian Pacific Railway has a Current Valuation of 88.85 B. This is much higher than that of the Ground Transportation sector and 149.07% higher than that of the Industrials industry. The current valuation for all United States stocks is significantly lower than that of the firm.
Canadian Current Valuation 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 Current Valuation 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 current valuation 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.Environmental | Governance | Social |
Canadian Fundamentals
| Return On Equity | 0.0809 | ||||
| Return On Asset | 0.044 | ||||
| Profit Margin | 0.24 % | ||||
| Operating Margin | 0.37 % | ||||
| Current Valuation | 88.85 B | ||||
| Shares Outstanding | 933.35 M | ||||
| Shares Owned By Insiders | 0.02 % | ||||
| Shares Owned By Institutions | 75.75 % | ||||
| Number Of Shares Shorted | 9.36 M | ||||
| Price To Earning | 5.08 X | ||||
| Price To Book | 2.40 X | ||||
| Price To Sales | 5.16 X | ||||
| Revenue | 12.55 B | ||||
| Gross Profit | 7.75 B | ||||
| EBITDA | (739 M) | ||||
| Net Income | 3.92 B | ||||
| Cash And Equivalents | 138 M | ||||
| Cash Per Share | 0.15 X | ||||
| Total Debt | 22.84 B | ||||
| Debt To Equity | 0.54 % | ||||
| Current Ratio | 0.58 X | ||||
| Book Value Per Share | 47.30 X | ||||
| Cash Flow From Operations | 4.14 B | ||||
| Short Ratio | 3.99 X | ||||
| Earnings Per Share | 2.76 X | ||||
| Price To Earnings To Growth | 2.37 X | ||||
| Target Price | 87.74 | ||||
| Number Of Employees | 20.22 K | ||||
| Beta | 0.79 | ||||
| Market Capitalization | 74.57 B | ||||
| Total Asset | 79.9 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 | 0.89 % | ||||
| Net Asset | 79.9 B |
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 against Canadian Stock
| 0.4 | AZ | A2Z Smart Technologies Tech Boost | PairCorr |
| 0.37 | AL | Air Lease | PairCorr |
| 0.36 | BE | Bloom Energy Corp | 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.Additional Tools for Canadian Stock Analysis
When running Canadian Pacific's price analysis, check to measure Canadian Pacific's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Canadian Pacific is operating at the current time. Most of Canadian Pacific's value examination focuses on studying past and present price action to predict the probability of Canadian Pacific's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Canadian Pacific's price. Additionally, you may evaluate how the addition of Canadian Pacific to your portfolios can decrease your overall portfolio volatility.