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Canadian Pacific Kansas CityCP 83 Debt-to-EBITDA is 3.27 as of Mar. 2026, which is 31% above its 10-year median of 2.49. GuruFocus rates CP with a GF Score™ of 83/100 and a GF Value™ of $87.17 (Fairly Valued). The stock has 10 warning signs investors should review. Among 868 Transportation companies, Canadian Pacific Kansas City ranks worse than 54.03% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Canadian Pacific Kansas City's Debt-to-EBITDA or its related term are showing as below:
CP'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: -30.9 Med: 2.49 Max: 4.19
Current: 2.92
During the past 13 years, the highest Debt-to-EBITDA Ratio of Canadian Pacific Kansas City was 4.19. The lowest was -30.90. And the median was 2.49.
CP's Debt-to-EBITDA is ranked worse than 54.03% of 868
companies
in the Transportation industry
Industry Median: 2.64
vs CP: 2.92
Canadian Pacific Kansas City (NYSE:CP) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Canadian Pacific Kansas City Debt-to-EBITDA Related Terms
Canadian Pacific Kansas City Debt-to-EBITDA Historical Data
* 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 Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Debt-to-EBITDA falls into.
* 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.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Canadian Pacific Kansas City (CP) has a Debt-to-EBITDA of 3.27 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Canadian Pacific Kansas City. This is 31% above median its historical median of 2.49. According to the industry distribution chart, Canadian Pacific Kansas City ranks #469 out of 868 companies in the Transportation industry, placing it in the top 54%.
Is Canadian Pacific Kansas City's Debt-to-EBITDA too high?
Canadian Pacific Kansas City's current Debt-to-EBITDA of 3.27 is 31% above median its 10-year median of 2.49. The Transportation industry median Debt-to-EBITDA is 2.64. Canadian Pacific Kansas City's value of 3.27 is 23.9% above this industry median. Based on the distribution chart, Canadian Pacific Kansas City ranks #469 out of 868 companies in the Transportation industry, which is below the industry midpoint. Overall, Canadian Pacific Kansas City has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Canadian Pacific Kansas City's Debt-to-EBITDA compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian Pacific Kansas City ranks #469 out of 868 companies for Debt-to-EBITDA. This places Canadian Pacific Kansas City in the lower half of its industry. The industry median Debt-to-EBITDA is 2.64. Canadian Pacific Kansas City's value of 3.27 is 23.9% above this benchmark. While the company's 10-year median is 2.49 vs. the industry median of 2.64, Canadian Pacific Kansas City has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for a Transportation company?
The median Debt-to-EBITDA among Transportation companies is 2.64, based on 868 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Pacific Kansas City's current Debt-to-EBITDA of 3.27 is 23.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Canadian Pacific Kansas City. For the Transportation industry, the median Debt-to-EBITDA is 2.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current Debt-to-EBITDA is 3.27, which is 31% above median its own 10-year median of 2.49. 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 (CP) is currently considered Fairly Valued. The stock's GF Value™ is $87.17, compared to a current price of $91.35 — trading 4.8% above its estimated fair value. The current Debt-to-EBITDA is 3.27, which is 31% above median its 10-year median of 2.49 and 23.9% above the Transportation industry median of 2.64. Canadian Pacific Kansas City's overall GF Score™ is 83/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Canadian Pacific Kansas City (CP), the current Debt-to-EBITDA is 3.27 as of Mar. 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 (CP) Overvalued in 2026?
Based on GuruFocus' analysis, Canadian Pacific Kansas City stock appears to be overvalued.
The current stock price of $91.35 is trading 4.8% above its estimated GF Value™ of $87.17.
GuruFocus considers Canadian Pacific Kansas City to be Fairly Valued.
Key valuation signals for CP:
Debt-to-EBITDA: 3.27 (31% above median its 10-year median of 2.49)
GF Value™: $87.17 vs. price of $91.35 (4.8% above fair value)
Industry Position: 23.9% above the Transportation median (#469 of 868)
No single metric tells the full story. See the CP 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.
83GF Score
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