Canadian Pacific Valuation

CP Stock  USD 88.46  1.34  1.54%   
At this time, the firm appears to be overvalued. Canadian Pacific Railway shows a prevailing Real Value of $79.22 per share. The current price of the firm is $88.46. Our model approximates the value of Canadian Pacific Railway from analyzing the firm fundamentals such as Return On Equity of 0.0965, profit margin of 0.31 %, and Current Valuation of 97.84 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors favor buying undervalued instruments and selling overvalued instruments since, at some point, asset prices and their ongoing real values will blend.
Price Book
2.6698
Enterprise Value
97.8 B
Enterprise Value Ebitda
(132.39)
Price Sales
6.4814
Forward PE
27.3973
Overvalued
Today
88.46
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.
Our valuation method for Canadian Pacific Railway is useful when determining the fair value of the Canadian stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Canadian Pacific. Since Canadian Pacific is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Canadian Stock. However, Canadian Pacific's intrinsic value may or may not be the same as its current market price, 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  88.46 Real  79.22 Target  89.44 Hype  88.34 Naive  86.66
The real value of Canadian Stock, also known as its intrinsic value, is the underlying worth of Canadian Pacific Railway Company, which is reflected in its stock price. It is based on Canadian Pacific's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. 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.
79.22
Real Value
97.31
Upside
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:
Earnings
Estimates (0)
LowProjectedHigh
0.650.700.74
Details
Hype
Prediction
LowEstimatedHigh
87.1888.3489.50
Details
Potential
Annual Dividend
LowForecastedHigh
0.380.380.39
Details
32 Analysts
Consensus
LowTarget PriceHigh
81.3989.4499.28
Details

Canadian Pacific Investments

(2.17 Billion)

Canadian Pacific Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Canadian Pacific's current stock value. Our valuation model uses many indicators to compare Canadian Pacific value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Canadian Pacific competition to find correlations between indicators driving Canadian Pacific's intrinsic value. More Info.
Canadian Pacific Railway is number one stock in last dividend paid category among related companies. It is rated below average in price to earning category among related companies reporting about  6.68  of Price To Earning per Last Dividend Paid. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Canadian Pacific by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Canadian Pacific's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Canadian Pacific's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Canadian Pacific's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Canadian Pacific and how it compares across the competition.

About Canadian Pacific Valuation

The stock valuation mechanism determines the current worth of Canadian Pacific Railway on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Canadian Pacific Railway. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Canadian Pacific Railway based exclusively on its fundamental and basic technical indicators. By analyzing Canadian Pacific's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Canadian Pacific's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Canadian Pacific's related companies.
Last ReportedProjected for 2024
Gross Profit6.4 B3.6 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

16.42 Billion

8 Steps to conduct Canadian Pacific's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Canadian Pacific's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Canadian Pacific's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Canadian Pacific's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Canadian Pacific's revenue streams: Identify Canadian Pacific's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Canadian Pacific's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Canadian Pacific's growth potential: Evaluate Canadian Pacific's management, business model, and growth potential.
  • Determine Canadian Pacific's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Canadian Pacific's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Canadian Pacific's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Canadian Pacific's value is low or high relative to the company's performance and growth projections. Determining the market value of Canadian Pacific can be done in different ways, such as multiplying its stock price by its outstanding shares.
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

As of 03/28/2024, Dividends Paid is likely to grow to about (671.6 M). In addition to that, Dividend Yield is likely to drop to 0.01. At this time, Canadian Pacific's Retained Earnings are relatively stable compared to the past year. As of 03/28/2024, Price Earnings To Growth Ratio is likely to grow to 1.69, while Price Earnings Ratio is likely to drop 15.90.
Last ReportedProjected for 2024
Dividends Paid-707 M-671.6 M
Dividend Yield 0.01  0.01 
Dividend Payout Ratio 0.18  0.17 
Dividend Paid And Capex Coverage Ratio(2.31)(2.42)
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

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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 Outstanding933.7 M
Quarterly Earnings Growth Y O Y-0.193
Forward Price Earnings27.3973

Canadian Pacific Current Valuation Indicators

Valuation refers to the process of determining the present value of Canadian Pacific Railway and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Canadian we look at many different elements of the entity such as Canadian's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Canadian Pacific's valuation analysis is also 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.
When determining whether Canadian Pacific Railway is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Canadian Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Canadian Pacific Railway Stock. Highlighted below are key reports to facilitate an investment decision about Canadian Pacific Railway Stock:
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 tightly coupled with the direction of predictive economic indicators such as signals in american community survey.
You can also try the CEOs Directory module to screen CEOs from public companies around the world.

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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.
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Is Canadian Pacific's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Canadian Pacific. If investors know Canadian will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Canadian Pacific listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.19)
Dividend Share
0.76
Earnings Share
3.09
Revenue Per Share
13.481
Quarterly Revenue Growth
0.534
The market value of Canadian Pacific Railway is measured differently than its book value, which is the value of Canadian that is recorded on the company's balance sheet. Investors also form their own opinion of Canadian Pacific's value that differs from its market value or its book value, called intrinsic value, which is Canadian Pacific's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Canadian Pacific's market value can be influenced by many factors that don't directly affect Canadian Pacific's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Canadian Pacific's value and its price as these two are different measures arrived at by different means. Investors typically determine if Canadian Pacific is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Canadian Pacific's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.