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Canadian Pacific Railway Ltd
NYSE:CP

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Canadian Pacific Railway Ltd
NYSE:CP
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Price: 86.96 USD 3.18% Market Closed
Market Cap: $81.3B

P/FCFE

34.6
Current
34%
Cheaper
vs 3-y average of 52.2

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
34.6
=
Market Cap
$98.6B
/
Free Cash Flow to Equity
CA$3B

Price to Free Cash Flow to Equity (P/FCFE) ratio compares a company`s market value to the free cash flow available to its shareholders. It`s similar to the P/OCF ratio but more precise, since it accounts for capital expenditures deducted from operating cash flow.

P/FCFE
34.6
=
Market Cap
$98.6B
/
Free Cash Flow to Equity
CA$3B

Valuation Scenarios

Canadian Pacific Railway Ltd is trading below its 3-year average

If P/FCFE returns to its 3-Year Average (52.2), the stock would be worth $131.25 (51% upside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-36%
Maximum Upside
+51%
Average Upside
0%
Scenario P/FCFE Value Implied Price Upside/Downside
Current Multiple 34.6 $86.96
0%
3-Year Average 52.2 $131.25
+51%
5-Year Average 30.8 $77.53
-11%
Industry Average 33.9 $85.19
-2%
Country Average 22 $55.35
-36%

Forward P/FCFE
Today’s price vs future free cash flow to equity

Not enough data available to calculate forward P/FCFE

Peer Comparison

All Multiples
P/FCFE
P/E
All Countries
Close

Market Distribution

In line with most companies in Canada
Percentile
57th
Based on 1 366 companies
57th percentile
25.5
Low
0 — 13.2
Typical Range
13.2 — 36
High
36 —
Distribution Statistics
Canada
Min 0
30th Percentile 13.2
Median 22
70th Percentile 36
Max 116 589.8

Canadian Pacific Railway Ltd
Glance View

Canadian Pacific Railway Ltd., headquartered in Calgary, Alberta, weaves a narrative of connectivity and function, tracing its roots back to 1881 when it was first chartered to connect Canada from coast to coast. Over the years, this railway titan has cemented itself as a vital artery in North America's logistics and transportation network. Moving beyond its historic role in uniting provinces, Canadian Pacific now thrives by efficiently linking agricultural, industrial, and resource-rich regions across the continent. It is not just about trains and tracks; it’s a dynamic enterprise navigating the complex terrain of supply chain logistics. Specializing in the freight transportation of goods such as grain, coal, potash, and industrial and consumer products, CP operates an expansive and strategically placed rail network that stretches across Canada and into the United States, creating an indispensable backbone for commerce. The heart of Canadian Pacific Railway's business model beats in its freight revenue streams, driven by the sheer volume of goods transported via its rail lines. This revenue is augmented by intermodal services, which allow the seamless movement of goods using combinations of trucks, trains, and ships—a testament to its intricate capability in meeting diverse logistical demands. To maintain its competitive edge, CP invests heavily in technology and infrastructure, improving fuel efficiency and transit times while expanding service offerings. Innovations like precision scheduled railroading have optimized operations, reducing costs and enhancing delivery punctuality. With strategic agility, management adaptability, and a continued focus on sustainable operations, Canadian Pacific not only enhances shareholder value but also sustains its pivotal role in the continental economy's functioning.

CP Intrinsic Value
87.78 USD
Undervaluation 1%
Intrinsic Value
Price $86.96
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