Stock Valuation / CP
Is Canadian Pacific Kansas City Limited (CP) Overvalued? Fair Value & 5-Year Target
Canadian Pacific Kansas City Limited trades at $85.73 (P/E 19.94). Our reference model estimates a fair value of $82.35 at its recent average P/E of 19.15.
| Current price | $85.73 |
|---|---|
| Current EPS | $4.30 |
| Current P/E | 19.94 |
| Average P/E | 19.15 |
| Fair value (at avg P/E) | $82.35 |
| Upside to fair value | -3.9% |
| Illustrative 5-yr target (25× P/E, 15% growth) | $216.22 |
What drives CP's valuation
Changing either assumption moves the target: a higher P/E multiple or faster EPS growth raises fair value, a lower multiple or slower growth lowers it. The interactive dashboard lets you edit both and re-run the model instantly.
About Canadian Pacific Kansas City Limited
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. The company also provides rail and intermodal transportation services through a network of approximately 20,000 miles serving business centers. The company was formerly known as Canadian Pacific Rai
Frequently asked questions
What is CP's fair value?
At its recent average P/E of 19.15, Canadian Pacific Kansas City Limited (CP) has a reference fair value of about $82.35, which is -3.9% versus the current price of $85.73.
Is Canadian Pacific Kansas City Limited (CP) overvalued or undervalued?
Based on the average-P/E reference model, Canadian Pacific Kansas City Limited looks overvalued relative to fair value by roughly +3.9%. This is a model output, not investment advice — change the P/E and growth assumptions in the dashboard for your own view.
What is a 5-year price target for CP?
Under an illustrative model of 25× P/E and 15% annual EPS growth, the implied 5-year target is $216.22. Adjust both inputs on the interactive page to match your assumptions.
Open the interactive CP valuation dashboard →
Figures are for informational purposes only and are not investment advice. Data as of 2026-10-14.