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Canadian Pacific Kansas CityCP 83 Graham Number is $38.96 as of Mar. 2026, which is 1671% above its 10-year median of 2.20. 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 742 Transportation companies, Canadian Pacific Kansas City ranks worse than 85.04% on this metric.
Graham Number is a figure that measures a stock's fundamental value by taking into account the company's earnings per share and book value per share. The Graham number is the upper bound of the price range that a defensive investor should pay for the stock. According to the theory, any stock price below the Graham number is considered undervalued, and thus worth investing in.
The historical rank and industry rank for Canadian Pacific Kansas City's Graham Number or its related term are showing as below:
CP'
s Price-to-Graham-Number Range Over the Past 10 Years
Min: 1.62 Med: 2.2 Max: 3.21
Current: 2.42
During the past 13 years, the highest Price to Graham Number ratio of Canadian Pacific Kansas City was 3.21. The lowest was 1.62. And the median was 2.20.
CP's Price-to-Graham-Number is ranked worse than 85.04% of 742
companies
in the Transportation industry
Industry Median: 1.015
vs CP: 2.42
Graham Number is a combination of asset valuation and earnings power valuation. It is a very conservative way of valuing a stock.
Canadian Pacific Kansas City (NYSE:CP) Graham Number Explanation
Ben Graham actually did not publish a formula like this. But he wrote in The Intelligent Investor (1948 version) regarding to the criteria for purchases:
Current price should not be more than 15 times average earnings of the past three years.
Current price should not be more than 1.5 times the book value last reported. However, a multiplier of earnings below 15 could justify a correspondingly higher multiplier of assets. As a rule of thumb we suggest that the product of the multiplier times the ratio of price to book value should not exceed 22.5. (This figure corresponds to 15 times earnings and 1.5 times book value. It would admit an issue selling at only 9 times earnings and 2.5 times asset value, etc.)
Unlike valuation methods such as DCF or Discounted Earnings, the Graham number does not take growth into the valuation. Unlike the valuation methods based on book value alone, it takes into account the earnings power. Therefore, the Graham Number is a combination of asset valuation and earnings power valuation.
In general, the Graham number is a very conservative way of valuing a stock. It cannot be applied to companies with negative book values.
Canadian Pacific Kansas City's Price to Graham number Ratio for today is calculated as
Price to Graham number
=
Share Price (Today)
/
Graham number (Q: Mar. 2026 )
=
91.35
/
38.96
=
2.34
* 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.
Be Aware
Please keep these in mind:
1. Graham Number does not take growth into account. Therefore it underestimates the values of the companies that have good earnings growth. We feel that if the earnings per share grows more than 10% a year, Graham Number underestimates the value.
2. Graham Number punishes the companies that have temporarily low earnings. Therefore, an average of earnings makes more sense in the calculation of Graham Number.
3. Graham Numbers underestimates companies that are light with book.
Canadian Pacific Kansas City Graham Number Related Terms
Canadian Pacific Kansas City Graham Number 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 Price-to-Graham-Number, along with its competitors' market caps and Price-to-Graham-Number 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 Price-to-Graham-Number vs Transportation Industry
For the Transportation industry and Industrials sector, Canadian Pacific Kansas City's Price-to-Graham-Number distribution charts can be found below:
* The bar in red indicates where Canadian Pacific Kansas City's Price-to-Graham-Number 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.
Canadian Pacific Kansas City (CP) has a Graham Number of $38.96 as of Mar. 2026. The Graham Number values a company based on its per-share earnings and book value. View historical data on Canadian Pacific Kansas City and its competitors. This is 1671% above median its historical median of 2.20. Over the past decade, Canadian Pacific Kansas City's Graham Number has ranged from 1.62 to 3.21. According to the industry distribution chart, Canadian Pacific Kansas City ranks #631 out of 742 companies in the Transportation industry, placing it in the top 85%.
Is Canadian Pacific Kansas City's Graham Number too high?
Canadian Pacific Kansas City's current Graham Number of $38.96 is 1671% above median its 10-year median of 2.20. Over the past 10 years, this metric has ranged from a low of 1.62 to a high of 3.21. The Transportation industry median Graham Number is 1.02. Canadian Pacific Kansas City's value of $38.96 is 3738.4% above this industry median. Based on the distribution chart, Canadian Pacific Kansas City ranks #631 out of 742 companies in the Transportation industry, which is in the bottom quartile relative to peers. 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 Graham Number compare to UNP and CSX?
According to the Transportation industry distribution chart, Canadian Pacific Kansas City ranks #631 out of 742 companies for Graham Number. This places Canadian Pacific Kansas City in the lower half of its industry. The industry median Graham Number is 1.02. Canadian Pacific Kansas City's value of $38.96 is 3738.4% above this benchmark. Historically, Canadian Pacific Kansas City's own Graham Number has ranged from 1.62 to 3.21 over the past decade. While the company's 10-year median is 2.20 vs. the industry median of 1.02, 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 Graham Number for a Transportation company?
The median Graham Number among Transportation companies is 1.02, based on 742 companies in the industry. Companies in the top quartile (top 25%) have a Graham Number significantly above this median, while those in the bottom quartile fall well below. However, Graham Number should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Canadian Pacific Kansas City's current Graham Number of $38.96 is 3738.4% 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 Graham Number mean?
A high Graham Number can signal that a stock is expensive relative to its fundamentals. The Graham Number values a company based on its per-share earnings and book value. View historical data on Canadian Pacific Kansas City and its competitors. For the Transportation industry, the median Graham Number is 1.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canadian Pacific Kansas City's current Graham Number is $38.96, which is 1671% above median its own 10-year median of 2.20. 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 Graham Number is $38.96, which is 1671% above median its 10-year median of 2.20 and 3738.4% above the Transportation industry median of 1.02. 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 Graham Number calculated?
Graham Number is calculated from a company's financial statements. For Canadian Pacific Kansas City (CP), the current Graham Number is $38.96 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:
Graham Number: $38.96 (1671% above median its 10-year median of 2.20)
GF Value™: $87.17 vs. price of $91.35 (4.8% above fair value)
Industry Position: 3738.4% above the Transportation median (#631 of 742)
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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