Canadian Pacific Valuation
| CP Stock | USD 75.35 0.96 1.29% |
At this time, the firm appears to be undervalued. Canadian Pacific Railway shows a prevailing Real Value of $83.65 per share. The current price of the firm is $75.35. Our model approximates the value of Canadian Pacific Railway from analyzing the firm fundamentals such as Profit Margin of 0.24 %, return on equity of 0.0809, and Current Valuation of 87.59 B as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Canadian Pacific's valuation include:
Price Book 2.2704 | Enterprise Value 87.6 B | Enterprise Value Ebitda 16.7348 | Price Sales 4.8056 | Forward PE 21.3675 |
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 75.35, 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 75.35 | Real 83.65 | Target 89.44 | Hype 75.39 | Naive 75.5 |
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 Valuation Trend
Canadian Pacific's real value is important for investors to make better decisions and a more accurate overall view of Canadian Pacific's financial worth over time. Using both Canadian Pacific's enterprise value as well as its market capitalization is the best way to gauge the value of the company and is usually enough for investors to make market timing conclusions.
Canadian Revenue by Product
Canadian Pacific Total Value Analysis
Canadian Pacific Railway is currently projected to have takeover value of 87.59 B with market capitalization of 69.43 B, debt of 22.84 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 |
87.59 B | 69.43 B | 22.84 B | 138 M |
Canadian Pacific Investor Information
About 76.0% of the company shares are held by institutions such as insurance companies. The book value of Canadian Pacific was currently reported as 47.3. The company has Price/Earnings To Growth (PEG) ratio of 2.37. Canadian Pacific Railway last dividend was issued on the 27th of December 2024. 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 is doing better financially today then in previous quarter. It has a moderate risk of reporting better financial numbers in December.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Operating Profit Margin | 0.23 | 0.3495 |
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| Total Cash From Operating Activities | 4.3 B | 4.1 B |
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| Operating Income | 4.6 B | 4.4 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 15.71 percent. This connotes that the Company is making $0.16 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 Ownership Allocation
Canadian Pacific holds a total of 933.35 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 November 2, 2022, Representative Kurt Schrader 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 12.55 B. Reported Net Income was 3.92 B with gross profit of 4.8 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 | 6.6 B | 3.6 B | |
| Pretax Profit Margin | (0.24) | (0.23) | |
| Operating Profit Margin | 0.35 | 0.23 | |
| Net Profit Margin | 0.31 | 0.33 | |
| Gross Profit Margin | 0.51 | 0.59 |
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 11/28/2024, Dividend Paid And Capex Coverage Ratio is likely to grow to 1.58, while Dividend Yield is likely to drop 0.01. . As of 11/28/2024, Retained Earnings is likely to grow to about 17.2 B. Also, Earnings Yield is likely to grow to 0.06
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 813 M | 853.7 M | |
| Dividend Yield | 0.01 | 0.01 | |
| Dividend Payout Ratio | 0.18 | 0.17 | |
| Dividend Paid And Capex Coverage Ratio | 1.29 | 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 | 933.7 M | |
| Quarterly Earnings Growth Y O Y | 0.071 | |
| Forward Price Earnings | 21.3675 |
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.