CP.TO · Intrinsic value
Is Canadian Pacific Kansas City Limited (CP.TO) overvalued or undervalued?
Canadian Pacific Kansas City Limited (CP.TO) trades at the delayed market price of CA$122.18 a share. That price already implies revenue growth of 20.1% a year for 5 years. TickerWorth's fair value is CA$87.51 a share (priced within our range of CA$53.69 – CA$132.96). We do not call it over- or undervalued from inside our range.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is CP.TO fairly valued?
- Fair value
- CA$87.51
- Market price
- CA$122.18
- Downside to fair value
- 28.4%
- Verdict
- Priced within our range of CA$53.69 – CA$132.96
Reverse DCF: Today's price implies revenue growth of 20.1% a year for 5 years; our model assumes 8.3% a year on average over the same horizon.
What is CP.TO's TickerWorth Score?
Middle of the pack — real strengths and real weaknesses
Compared with Industrials companies in Canada
Its strongest point: a profitable, high-quality business. Its weakest: balance sheet looks stretched.
- Value · 44 of 100
Cheaper than 44% of Industrials companies worldwide
- Price vs worth · 27 of 100
- Quality · 74 of 100
More profitable than 74% of Industrials companies worldwide
- Financial health · 24 of 100
Financially stronger than 24% of Industrials companies worldwide
- Growth · 42 of 100
Growing faster than 42% of Industrials companies worldwide
- Momentum · 63 of 100
Outperformed 63% of Industrials companies worldwide over the past year
Confidence: High confidence · Scored
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CP.TO DCF valuation, input by input
TickerWorth's fair value for Canadian Pacific Kansas City Limited (CP.TO) is CA$87.51 a share, against the delayed market price of CA$122.18 (priced within our range of CA$53.69 – CA$132.96). We do not call it over- or undervalued from inside our range. It is a model estimate, and every input behind it is sourced below. This is an educational model, not a price target or a recommendation.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values CP.TO at about C$67.20 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Canadian Pacific Kansas City Limited's projected free cash flows at a weighted-average cost of capital (WACC) of 10.0%, with a long-run terminal growth rate of 2.5%. About 72% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 20.1% annual revenue growth for CP.TO. Our base case instead compounds to about 8.3% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, CP.TO's modeled DCF value ranges from about C$45.16 to C$111.10 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Canadian Pacific Kansas City Limited would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of CP.TO's intrinsic value. Figures update as new filings and prices come in.
Every input behind CP.TO's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | C$15,449,000,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 39.0% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 13% → 10% → 8% → 6% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.2% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.22 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 879M |
| Market priceLast known price · as of 2026-10-19 18:35 UTC | C$122.18 |
Change CP.TO's assumptions
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What does Canadian Pacific Kansas City Limited do?
What does it do?
Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico. The transports bulk commodities, including grain, coal, potash, fertilizers, and sulphur; merchandise freight consists of industrial and consumer products, such as forest products, energy, chemicals and plastics, metals, minerals, consumer products, and automotive; and intermodal traffic comprising retail goods in overseas containers. It operates in the Railroads industry (Industrials sector), headquartered in Canada. The company employs roughly 19,687 people.
How does it make money?
The business turns $15.4B in annual revenue into profit. Out of every $100 of sales, about $39 is left as operating profit (operating margin of 39.0%), after a 53% gross margin on the products/services it sells. After all costs, taxes and interest, 25.0% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks stretched: carries modest debt (0.5× equity), may struggle to cover its short-term bills (0.6× current ratio), and is currently profitable.
CP.TO insider trading
Insider filings are available for US-listed companies only.
Common questions
What is CP.TO's intrinsic value?
TickerWorth's blended fair value for Canadian Pacific Kansas City Limited (CP.TO) is CA$87.51 per share, versus a market price of CA$122.18 (priced within our range of CA$53.69 – CA$132.96).
Is CP.TO overvalued or undervalued?
Priced within our range of CA$53.69 – CA$132.96 at CA$122.18. We don't call CP.TO overvalued or undervalued from a range. This is an educational estimate, not advice.
What discount rate is used for CP.TO?
A WACC of 10.0% and a terminal growth rate of 2.5%.
Is Canadian Pacific Kansas City stock undervalued?
TickerWorth's fair value for Canadian Pacific Kansas City Limited (CP.TO) is CA$87.51 against a market price of CA$122.18. Our read: Priced within our range of CA$53.69 – CA$132.96. This is a model estimate, not investment advice.
Canadian Pacific Kansas City (CP.TO) DCF valuation and fair value
Our fair value for Canadian Pacific Kansas City Limited (CP.TO) is CA$87.51, built on a 10.0% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Canadian Pacific Kansas City stock?
Today's price implies revenue growth of 20.1% a year for 5 years; our model assumes 8.3% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of CA$122.18. A model estimate, not investment advice.
Canadian Pacific Kansas City (CP.TO) insider trading
We have no recent SEC Form 4 insider filings on file for Canadian Pacific Kansas City Limited (CP.TO). Form 4 covers US-listed companies only.
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.