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Canadian Pacific Railway Peter Lynch Fair Value

: $22.57 (As of Today)
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Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year. Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years. If 5-Year Growth Rate is greater than 25% a year, we use 25. If 5-Year Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Here, as of today, Canadian Pacific Railway's PEG is 1. Canadian Pacific Railway's 5-Year EBITDA Growth Rate is 9.95. Canadian Pacific Railway's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 was $2.27. Therefore, the Peter Lynch Fair Value for today is $22.57.

As of today (2022-08-10), Canadian Pacific Railway's share price is $81.52. Canadian Pacific Railway's Peter Lynch fair value is $22.57. Therefore, Canadian Pacific Railway's Price to Peter Lynch Fair Value Ratio for today is 3.61.


The historical rank and industry rank for Canadian Pacific Railway's Peter Lynch Fair Value or its related term are showing as below:

CP' s Price-to-Peter-Lynch-Fair-Value Range Over the Past 10 Years
Min: 0.14   Med: 0.98   Max: 5.97
Current: 3.9


During the past 13 years, the highest Price to Peter Lynch Fair Value Ratio of Canadian Pacific Railway was 5.97. The lowest was 0.14. And the median was 0.98.


CP's Price-to-Peter-Lynch-Fair-Value is ranked worse than
94.21% of 259 companies
in the Transportation industry
Industry Median: 0.79 vs CP: 3.90

Note: Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart.


Canadian Pacific Railway Peter Lynch Fair Value Historical Data

The historical data trend for Canadian Pacific Railway's Peter Lynch Fair Value can be seen below:

* 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.

* Premium members only.

Canadian Pacific Railway Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Peter Lynch Fair Value
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 62.84 34.46 32.66 32.95 41.54

Canadian Pacific Railway Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Peter Lynch Fair Value Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.21 46.76 41.54 36.78 20.92

Competitive Comparison

For the Railroads subindustry, Canadian Pacific Railway's Peter Lynch Fair Value, along with its competitors' market caps and Peter Lynch Fair Value 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 Railway Peter Lynch Fair Value Distribution

For the Transportation industry and Industrials sector, Canadian Pacific Railway's Peter Lynch Fair Value distribution charts can be found below:

* The bar in red indicates where Canadian Pacific Railway's Peter Lynch Fair Value falls into.



Canadian Pacific Railway Peter Lynch Fair Value Calculation

Canadian Pacific Railway's Peter Lynch Fair Value for today is calculated as

Peter Lynch Fair Value=PEG Ratio*5-Year EBITDA Growth Rate*EPS without NRI (TTM)
=1* 9.95 *2.268
=22.57

Canadian Pacific Railway's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $2.27.


* 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.

If 5-Year Earnings Growth Rate is greater than 25% a year, we use 25.

If 5-Year Earnings Growth Rate is smaller than 5% a year, we do not calculate Peter Lynch Fair Value.

Please note that we use the 5-year average growth rate of EBITDA per share as the growth rate for non-bank companies, as EBITDA growth is subject to less manipulations than net earnings per share. For banks, we use the 5-year average growth rate of Book Value per share as the growth rate. The reason is that EBITDA is not applicable to Banks and Book value is a relative important measurement for Banks. In the calculation, PEG=1 because Peter Lynch thinks that the fair P/E ratio of the growth stock is equal to its earnings growth rate.


Canadian Pacific Railway  (NYSE:CP) Peter Lynch Fair Value Explanation

Peter Lynch Fair Value applies to growing companies. The ideal range for the growth rate is between 10 - 20% a year.

Peter Lynch thinks that the fair P/E value for a growth company equals its growth rate, that is PEG = 1. The earnings here is trailing twelve month (TTM) earnings. For non-bank companies, the growth rate we use is the average growth rate for EBITDA per share over the past 5 years. For Banks, the growth rate we use is the average growth rate for Book Value per share over the past 5 years.

Please don't confuse Peter Lynch Fair Value with the value reached in Peter Lynch Chart. In Peter Lynch chart, a fixed P/E ratio of 15 is used to draw the Earnings Line. Therefore the value reached has a P/E ratio of 15. But in Peter Lynch Fair Value calculation, P/E equals to the growth rate of EBITDA per share over the past 5 years, which is 9.95 instead of 15 in this case.

Canadian Pacific Railway's Price to Peter Lynch Fair Value Ratio for today is calculated as

Price to Peter Lynch Fair Value=Share Price/Peter Lynch Fair Value
=81.52/22.57
=3.61

* 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 Railway Peter Lynch Fair Value Related Terms

Thank you for viewing the detailed overview of Canadian Pacific Railway's Peter Lynch Fair Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Canadian Pacific Railway Business Description

Canadian Pacific Railway logo
Traded in Other Exchanges
Address
7550 Ogden Dale Road S.E., Calgary, AB, CAN, T2C 4X9
Canadian Pacific is a CAD 8 billion Class-1 railroads operating on more than 12,500 miles of track across most of Canada and into parts of the Midwestern and Northeastern United States. It is the second-smallest Class I railroad by revenue and route miles. In 2021, CP hauled shipments of grain (22% of freight revenue), intermodal containers (22%), energy products (like crude and frac sand), chemicals, and plastics (20%) coal (8%), fertilizer and potash (10%), automotive products (5%), and a diverse mix of other merchandise.
Executives
Brooks John Kenneth officer: SVP & Chief Marketing Officer 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Clements James Dominic Luther officer: VP Planning & Transportation 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Foran Mike officer: VP Network Transportation 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Trafton Gordon T. Ii director 2632 SUTTON CIRCLE NAPERVILLE IL 60564
Peverett Jane L director 1489 MARINE DRIVE, SUITE 802 WEST VANCOUVER A1 V7T 1B8
Derry John E officer: Vice-President Human Resources 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Johnson Robert Allen officer: Executive VP Operations 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Denham Gillian H director C/O CANADIAN PACIFIC RAILWAY LIMITED 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Fatt William R. director 129 ROCHESTER AVENUE TORONTO A6 M4N 1N9
Velani Nadeem officer: Interim VP and CFO 7550 OGDEN DALE ROAD S. E. CALGARY A0 T2C 4X9
Paull Matthew H director MCDONALDS CORP 2915 JORIE BLVD OAK BROOK IL 60523
Reardon Andrew Fitzpatrick director C/O CANADIAN PACIFIC RAILWAY LIMITED 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Melman Anthony Ronald director 150 BLOOR STREET WEST TORONTO A6 M5S 2X9
Pitz Laird Joseph officer: VP & Chief Risk Officer 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9
Edwards Peter John officer: VP HR & Labour Relations 7550 OGDEN DALE ROAD S.E. CALGARY A0 T2C 4X9

Canadian Pacific Railway Headlines

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