Canadian Pacific Valuation
| CP Stock | USD 85.11 0.41 0.48% |
At this time, the firm appears to be undervalued. Canadian Pacific Railway shows a prevailing Real Value of $90.4 per share. The current price of the firm is $85.11. Our model approximates the value of Canadian Pacific Railway from analyzing the firm fundamentals such as Current Valuation of 92.15 B, return on equity of 0.0864, and Profit Margin of 0.27 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Canadian Pacific's valuation include:
Price Book 2.2262 | Enterprise Value | Enterprise Value Ebitda 14.9734 | Price Sales 4.9851 | Forward PE 21.8341 |
Undervalued
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 85.11, 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 85.11 | Real 90.4 | Target 85.3 | Hype 85.6 | Naive 84.55 |
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: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Canadian Pacific's intrinsic value based on its ongoing forecasts of Canadian Pacific's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Canadian Pacific's closest peers.
Canadian Pacific Cash |
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Canadian Revenue by Product
Canadian Pacific Total Value Analysis
Canadian Pacific Railway is currently projected to have takeover value of 92.15 B with market capitalization of 75.16 B, debt of 23.19 B, and cash on hands of 138 M. Please note that takeover value may be misleading and is a subject to accounting mistakes. We encourage investors to methodically examine all of the Canadian Pacific fundamentals before making investment evaluation based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
92.15 B | 75.16 B | 23.19 B | 138 M |
Canadian Pacific Investor Information
About 74.0% of the company shares are held by institutions such as insurance companies. The book value of Canadian Pacific was currently reported as 37.47. The company has Price/Earnings To Growth (PEG) ratio of 2.37. Canadian Pacific Railway last dividend was issued on the 27th of March 2026. The entity had 5:1 split on the 14th of May 2021. Based on the measurements of operating efficiency obtained from Canadian Pacific's historical financial statements, Canadian Pacific Railway may be sliding down financialy. It has an above-average risk of going through some form of financial distress next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.22 | 0.3762 |
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| Total Cash From Operating Activities | 5.6 B | 5.3 B |
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| Operating Income | 5.9 B | 5.6 B |
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Canadian Pacific Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Canadian Pacific has an asset utilization ratio of 17.54 percent. This connotes that the Company is making $0.18 for each dollar of assets. An increasing asset utilization means that Canadian Pacific Railway is more efficient with each dollar of assets it utilizes for everyday operations.Canadian Pacific Profitability Analysis
Based on the measurements of profitability obtained from Canadian Pacific's financial statements, Canadian Pacific's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Canadian Pacific's ability to earn profits and add value for shareholders.Net Income | First Reported 2000-06-30 | Previous Quarter 920 M | Current Value 1.1 B | Quarterly Volatility 331.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.55 | 0.4032 |
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| Net Profit Margin | 0.15 | 0.2746 |
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| Operating Profit Margin | 0.22 | 0.3762 |
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| Return On Assets | 0.046 | 0.0482 |
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| Return On Equity | 0.13 | 0.0903 |
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For Canadian Pacific profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Canadian Pacific Railway to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Canadian Pacific utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Canadian Pacific's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Canadian Pacific over time as well as its relative position and ranking within its peers.
Canadian Pacific Earnings per Share Projection vs Actual
The next projected EPS of Canadian Pacific is estimated to be 1.19 with future projections ranging from a low of 1.0671 to a high of 1.18. Canadian Pacific's most recent 12-month trailing earnings per share (EPS TTM) is at 3.32. Please be aware that the consensus of earnings estimates for Canadian Pacific Railway is based on EPS before non-recurring items and includes expenses related to employee stock options.Canadian Pacific Earnings Estimation Breakdown
The calculation of Canadian Pacific's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Canadian Pacific is estimated to be 1.19 with the future projection ranging from a low of 1.0671 to a high of 1.18. Please be aware that this consensus of annual earnings estimates for Canadian Pacific Railway is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
1.07 Lowest | Expected EPS | 1.18 Highest |
Canadian Pacific Earnings Projection Consensus
Suppose the current estimates of Canadian Pacific's value are higher than the current market price of the Canadian Pacific stock. In this case, investors may conclude that Canadian Pacific is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Canadian Pacific's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of March 2026 | Current EPS (TTM) | |
| 30 | 95.3% | 1.33 | 1.19 | 3.32 |
Canadian Pacific Ownership Allocation
Canadian Pacific holds a total of 897.7 Million outstanding shares. The majority of Canadian Pacific Railway outstanding shares are owned by other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Canadian Pacific Railway to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Canadian Pacific. Please pay attention to any change in the institutional holdings of Canadian Pacific Railway as this could imply that something significant has changed or is about to change at the company. On January 13, 2026, Representative Gilbert Cisneros of US Congress acquired under $15k worth of Canadian Pacific Railway's common stock.Canadian Pacific Profitability Analysis
The company generated the yearly revenue of 15.08 B. Reported Net Income was 4.14 B with gross profit of 8.11 B.Canadian Pacific Past Distributions to stockholders
About Canadian Pacific Valuation
The stock valuation mechanism determines Canadian Pacific's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Canadian Pacific Railway based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Canadian Pacific. We calculate exposure to Canadian Pacific's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Canadian Pacific's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 7.9 B | 8.3 B | |
| Pretax Profit Margin | 0.36 | 0.38 | |
| Operating Profit Margin | 0.38 | 0.22 | |
| Net Profit Margin | 0.27 | 0.15 | |
| Gross Profit Margin | 0.40 | 0.55 |
Canadian Pacific Quarterly Retained Earnings |
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A single share of Canadian Pacific represents a small ownership stake in the entity. As a stockholder of Canadian, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Canadian Pacific Dividends Analysis For Valuation
At this time, Canadian Pacific's Dividends Paid is relatively stable compared to the past year. As of 02/20/2026, Dividend Payout Ratio is likely to grow to 0.37, while Dividend Yield is likely to drop 0.01. . At this time, Canadian Pacific's Retained Earnings are relatively stable compared to the past year. As of 02/20/2026, Earnings Yield is likely to grow to 0.06, while Price Earnings Ratio is likely to drop 16.42.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 796 M | 835.8 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.19 | 0.37 | |
| Dividend Paid And Capex Coverage Ratio | 1.35 | 1.58 |
There are various types of dividends Canadian Pacific can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Canadian shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Canadian Pacific Railway directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Canadian pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Canadian Pacific by the value of the dividends paid out.
Canadian Pacific Growth Indicators
Investing in growth stocks can be very risky. If the company such as Canadian Pacific does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 917.1 M | |
| Quarterly Earnings Growth Y O Y | -0.068 | |
| Forward Price Earnings | 21.8341 |
Canadian Pacific Current Valuation Indicators
Canadian Pacific's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Canadian Pacific's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Canadian Pacific, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Canadian Pacific's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Canadian Pacific's worth.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.