Value Sense
CP
Canadian Pacific Railway Limited (CP)
Last Price$73.1(1.6%)
Market Cap$67.6B
WACC
6.0%
Cost of Equity
7.8%
Cost of Debt
0.7%
Debt to Equity
34.0%
Beta
0.7
Stock quality
6/10
Good
CP
is 37.7% overvalued
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CP WACC

Recent WACC calculation

as of Mar 11, 2025
Cost of Equity
% share of Total Capital
7.8%
74.6%
Risk-free rate
4.3%
Beta
0.8
Equity Risk Premium
4.6%
Country risk premium
0.0%
Cost of Debt (after-tax)
% share of Total Capital
0.7%
25.4%
Average Cost of Debt
0.9%
Effective Tax Rate
17.0%
WACC
6.0%

WACC dynamics

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CP Cost of Equity

Recent Cost of Equity calculation

as of Mar 11, 2025
Risk-free rate
4.3%
Beta
0.8
Equity risk premium
4.6%
Country risk premium
0.0%
Cost of Equity
7.8%

Cost of Equity dynamics

CP vs Peer Set: Discount Rate Comparison

WACC
Cost of Equity

General

Discount rate

financials

Company name

Revenue growth

EPS growth

Net Income margin

Canadian Pacific Railway Limited logo
Canadian Pacific Railway LimitedCP
6.0%
14.0%
(7.0%)
25.6%
Median Peer Set
7.6%
(0.6%)
78.2%
9.1%
Westinghouse Air Brake Technologies Corporation logo
Westinghouse Air Brake Technologies CorporationWAB
9.4%
7.3%
120.8%
10.2%
FreightCar America, Inc. logo
FreightCar America, Inc.RAIL
9.0%
(1.8%)
(24.4%)
(6.6%)
Norfolk Southern Corporation logo
Norfolk Southern CorporationNSC
8.1%
(0.3%)
44.3%
21.6%
CSX Corporation logo
CSX CorporationCSX
7.8%
(0.8%)
(3.2%)
23.9%
Rail Vision Ltd. logo
Rail Vision Ltd.RVSN
7.7%
(66.3%)
482.4%
(7,850.7%)
Union Pacific Corporation logo
Union Pacific CorporationUNP
7.6%
0.5%
112.1%
27.8%
L.B. Foster Company logo
L.B. Foster CompanyFSTR
6.5%
(2.4%)
2,764.3%
8.1%
Canadian National Railway Company logo
Canadian National Railway CompanyCNI
6.2%
(0.3%)
(19.3%)
26.1%
The Greenbrier Companies, Inc. logo
The Greenbrier Companies, Inc.GBX
5.3%
(10.3%)
164.1%
4.5%
Trinity Industries, Inc. logo
Trinity Industries, Inc.TRN
3.8%
3.2%
29.0%
4.5%

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FAQ

What is Canadian Pacific Railway Limited's discount rate as of Mar 11, 2025?

As of Mar 11, 2025, Canadian Pacific Railway Limited's discount rate is 6.04%. This rate is determined based on the weighted average cost of capital (WACC) and the cost of equity, factoring in Canadian Pacific Railway Limited's capital structure and risk profile.

What is Canadian Pacific Railway Limited's weighted average cost of capital (WACC)?

Canadian Pacific Railway Limited's WACC as of Mar 11, 2025, is 6.04%. This value is calculated by blending the cost of debt and cost of equity, reflecting the company’s overall cost of financing its operations.

What is Canadian Pacific Railway Limited's cost of equity?

Canadian Pacific Railway Limited's cost of equity is 7.8%, as of Mar 11, 2025. This is the return that shareholders expect based on the stock's risk level and market conditions, used to calculate the discount rate for valuing future cash flows.