Understanding the Core Principles of Corporate Profits

By Kim Brooks • Thursday, July 31 15:19 • Permanent Link

Large-cap Industrials company Canadian Pacific Railway has moved -3.3% so far today on a volume of 4,793,032, compared to its average of 2,901,501. In contrast, the S&P 500 index moved -0.0%.

Canadian Pacific Railway trades -18.32% away from its average analyst target price of $89.62 per share. The 12 analysts following the stock have set target prices ranging from $71.8279 to $96.768295, and on average have given Canadian Pacific Railway a rating of buy.

If you are considering an investment in CP, you'll want to know the following:

Canadian Pacific Railway's current price is 8.1% above its Graham number of $67.74, which implies that at its current valuation it does not offer a margin of safety
Canadian Pacific Railway has moved -5.8% over the last year, and the S&P 500 logged a change of 16.8%
Based on its trailing earnings per share of 3.26, Canadian Pacific Railway has a trailing 12 month Price to Earnings (P/E) ratio of 22.5 while the S&P 500 average is 29.3
CP has a forward P/E ratio of 20.3 based on its forward 12 month price to earnings (EPS) of $3.6 per share
Its Price to Book (P/B) ratio is 1.43 compared to its sector average of 2.89
Canadian Pacific Kansas City Limited, together with its subsidiaries, owns and operates a transcontinental freight railway in Canada, the United States, and Mexico.
Based in Calgary, the company has 19,992 full time employees and a market cap of $68.46 Billion.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.