Canadian Pacific Kansas City Ltd. (CP.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-64.4%

CA$45.52

vs CA$127.90 price

Levered DCF

CA$92.38

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.23

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.36×	26.15×	24.98×	26.71×	21.66×	24.46×	18.81×	17.75×
P/B	2.02×	2.03×	2.37×	2.41×	1.83×	8.17×	6.5×	5.22×
P/S	6.14×	6.68×	7.82×	10.65×	7.73×	7.76×	5.9×	4.73×
EV / EBITDA	13.81×	15.97×	-163.12×	20.06×	16.87×	15.72×	12.76×	11.57×
Gross margin	40.3%	51.9%	51.3%	52.1%	57.4%	57.5%	55.7%	55.2%
Operating margin	37.6%	35.6%	35.0%	37.8%	40.1%	42.9%	40.1%	38.7%
Net margin	27.5%	25.6%	31.3%	39.9%	35.7%	31.7%	31.3%	26.7%
Current ratio	0.49×	0.6×	0.53×	0.59×	0.43×	0.5×	0.53×	0.57×
Debt / equity	0.51×	0.48×	0.55×	0.51×	0.6×	1.38×	1.29×	1.31×
Interest coverage	6.47×	6.47×	5.69×	5.11×	7.29×	7.23×	6.88×	6.25×
Dividend yield	0.9%	0.7%	0.7%	0.8%	0.8%	0.8%	0.9%	1.0%
Payout ratio	19.2%	19.1%	18.0%	20.1%	17.8%	19.1%	16.9%	17.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	9.0%	7.8%	9.5%	9.0%	8.4%	33.4%	34.5%	29.4%
Return on invested capital	5.1%	4.7%	-7.2%	3.9%	3.8%	11.3%	11.6%	10.7%
Return on assets	4.8%	4.2%	4.9%	4.8%	4.2%	10.3%	10.8%	9.1%
Free cash flow yield	2.3%	2.5%	1.7%	2.8%	3.5%	1.9%	2.9%	3.4%
Earnings yield	4.5%	3.8%	4.0%	3.7%	4.6%	4.1%	5.3%	5.6%
Enterprise value	CA$115.6B	CA$119.4B	CA$120.5B	CA$113.4B	CA$82.2B	CA$69.8B	CA$54.9B	CA$43.3B
Net debt / EBITDA	2.75×	2.98×	-30.28×	3.45×	4.17×	2.24×	2.08×	2.31×
Cash conversion cycle (days)	-42	33	38	23	16	18	9	7