Canadian Pacific Kansas City Limited (CP) is overvalued and CSX Corp (CSX) is overvalued.
Both trade above our estimate of their intrinsic value. CP is the closer of the two: -41%, against -94% for CSX.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.5% (average of 3 methods) values the shares at $62.32; the price of $87.99 is 41% above that value, and 75% of that value comes from beyond year five.
Leak Score 27/100 on 3 of 12 signals
Discounting its cash flows at 10.3% (average of 3 methods) values the shares at $24.06; the price of $46.59 is 94% above that value, and 71% of that value comes from beyond year five.
Leak Score 31/100 on 10 of 12 signals
| Metric | CP | CSX |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $87.99 | $46.59 |
| Intrinsic value | $62.32 | $24.06 |
| Margin of safety | -41% | -94% |
| Leak Score | 27/100 (3/12) | 31/100 (10/12) |
| Market cap | $77.4B | $86.3B |
| Revenue growth, 5 years | 13.4% | 5.9% |
| Operating margin | 37.1% | 35.3% |
| Net margin | 25.0% | 22.2% |
| Return on equity | 8.4% | 24.4% |
| Debt to equity | 0.54 | 1.37 |
| P/E | 28.3x | 26.9x |
| Forward P/E | 20.6x | 20.5x |
| P/B | 2.4x | 6.1x |
| Dividend yield | 0.8% | 1.2% |