Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. As of today (2026-06-27), Canadian Pacific Kansas City's Beta is 0.2895.
Canadian Pacific Kansas City (HAM:X88) Beta Explanation
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We usually compare beta to 1. A beta of 1 indicates that the security's price will move with the market. A beta of less than 1 means that the security will be less volatile than the market. A beta of greater than 1 indicates that the security's price will be more volatile than the market.
Beta is primarily used in the Capital Asset Pricing Model (CAPM) to calculate the Cost of Equity, which can be used in the calculation of WACC %. The formula of Cost of Equity is:
Cost of Equity = Risk-Free Rate of Return + Beta of Asset * (Expected Return of the Market - Risk-Free Rate of Return)
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Railroads subindustry, Canadian Pacific Kansas City's Beta, along with its competitors' market caps and Beta data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Canadian Pacific Kansas City Beta vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Beta distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Beta falls into.
Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. A stock's beta can be calculated by dividing the product of the covariance of the individual stock's returns and the market's returns by the variance of the market's returns over a specified period. Basically, GuruFocus uses the returns calculated over three-year period.
Canadian Pacific Kansas City (HAM:X88) has a Beta of 0.2895 as of Jun. 27, 2026. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Canadian Pacific Kansas City and its competitors.
Is Canadian Pacific Kansas City's Beta too high?
Canadian Pacific Kansas City's current Beta is 0.2895. Overall, Canadian Pacific Kansas City has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Canadian Pacific Kansas City's Beta compare to UNP and CSX?
Canadian Pacific Kansas City's Beta of 0.2895 can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beta for a Transportation company?
A good Beta depends on the Transportation industry context. However, Beta should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beta mean?
A high Beta can signal that a stock is expensive relative to its fundamentals. Beta is the sensitivity of the expected excess asset returns to the expected excess market returns. View historical data for Canadian Pacific Kansas City and its competitors. Canadian Pacific Kansas City's current Beta is 0.2895. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canadian Pacific Kansas City stock overvalued right now?
Based on GuruFocus' analysis, Canadian Pacific Kansas City (HAM:X88) is currently considered Fairly Valued. The stock's GF Value™ is €71.37, compared to a current price of €73.00 — trading 2.3% above its estimated fair value. The current Beta is 0.2895. Canadian Pacific Kansas City's overall GF Score™ is 79/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beta calculated?
Beta is calculated from a company's financial statements. For Canadian Pacific Kansas City (HAM:X88), the current Beta is 0.2895 as of Jun. 27, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Canadian Pacific Kansas City (HAM:X88) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian Pacific Kansas City stock appears to be overvalued.
The current stock price of €73.00 is trading 2.3% above its estimated GF Value™ of €71.37.
GuruFocus considers Canadian Pacific Kansas City to be Fairly Valued.
Key valuation signals for HAM:X88:
Beta: 0.2895
GF Value™: €71.37 vs. price of €73.00 (2.3% above fair value)
No single metric tells the full story. See the HAM:X88 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canadian Pacific Kansas City is a Class I railroad operating on tracks that span most of Canada and into parts of the Midwestern and Northeastern United States. Following the April 2023 Kansas City Southern merger, CPKC operates new single-linehaul services from Canada and the Upper Midwest down through Texas, the Gulf of Mexico, and into Mexico. It also hauls cross-border and intra-Mexico freight via operating concessions on more than 3,000 miles of rail in Mexico. CPKC hauls shipments of grain, intermodal containers, energy products (like crude and frac sand), chemicals, plastics, coal, fertilizer and potash, automotive products, and a diverse mix of other merchandise.
79GF Score
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