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Canadian Pacific Railway Ltd
TSX:CP

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Canadian Pacific Railway Ltd
TSX:CP
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Price: 118.79 CAD 0.6%
Market Cap: CA$106.7B

P/OCF

19.9
Current
3%
Cheaper
vs 3-y average of 20.5

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
19.9
=
Market Cap
CA$98.6B
/
Operating Cash Flow
CA$5.3B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
19.9
=
Market Cap
CA$98.6B
/
Operating Cash Flow
CA$5.3B

Valuation Scenarios

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

If P/OCF returns to its 3-Year Average (20.5), the stock would be worth CA$122.03 (3% upside from current price).

Statistics
Positive Scenarios
2/4
Maximum Downside
-45%
Maximum Upside
+9%
Average Downside
18%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 19.9 CA$118.79
0%
3-Year Average 20.5 CA$122.03
+3%
5-Year Average 21.7 CA$129.07
+9%
Industry Average 12.6 CA$75.19
-37%
Country Average 10.9 CA$65.23
-45%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
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Market Distribution

Higher than 75% of companies in Canada
Percentile
75th
Based on 1 917 companies
75th percentile
19.9
Low
0.1 — 7.2
Typical Range
7.2 — 17
High
17 —
Distribution Statistics
Canada
Min 0.1
30th Percentile 7.2
Median 10.9
70th Percentile 17
Max 26 053.9

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
116.2 CAD
Overvaluation 2%
Intrinsic Value
Price CA$118.79
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