Intrinsic value of Canadian National Railway - CNI

Previous Close

$88.23

  Intrinsic Value

$30.34

stock screener

  Rating & Target

str. sell

-66%

Previous close

$88.23

 
Intrinsic value

$30.34

 
Up/down potential

-66%

 
Rating

str. sell

We calculate the intrinsic value of CNI stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 68.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  9,135
  9,345
  9,585
  9,855
  10,154
  10,482
  10,839
  11,225
  11,641
  12,088
  12,566
  13,076
  13,619
  14,196
  14,809
  15,457
  16,144
  16,871
  17,638
  18,449
  19,304
  20,206
  21,156
  22,158
  23,213
  24,324
  25,493
  26,723
  28,017
  29,378
Variable operating expenses, $m
  5,316
  5,438
  5,577
  5,733
  5,907
  6,097
  6,304
  6,528
  6,769
  7,028
  7,283
  7,579
  7,894
  8,228
  8,583
  8,959
  9,357
  9,779
  10,223
  10,693
  11,189
  11,712
  12,263
  12,843
  13,454
  14,098
  14,776
  15,489
  16,239
  17,028
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  5,316
  5,438
  5,577
  5,733
  5,907
  6,097
  6,304
  6,528
  6,769
  7,028
  7,283
  7,579
  7,894
  8,228
  8,583
  8,959
  9,357
  9,779
  10,223
  10,693
  11,189
  11,712
  12,263
  12,843
  13,454
  14,098
  14,776
  15,489
  16,239
  17,028
Operating income, $m
  3,819
  3,907
  4,008
  4,122
  4,247
  4,385
  4,535
  4,697
  4,872
  5,060
  5,283
  5,497
  5,725
  5,968
  6,225
  6,498
  6,787
  7,092
  7,415
  7,756
  8,115
  8,494
  8,894
  9,315
  9,758
  10,225
  10,717
  11,234
  11,778
  12,350
EBITDA, $m
  6,347
  6,493
  6,660
  6,847
  7,055
  7,283
  7,531
  7,799
  8,088
  8,399
  8,731
  9,085
  9,462
  9,863
  10,289
  10,740
  11,217
  11,722
  12,255
  12,818
  13,412
  14,039
  14,699
  15,395
  16,128
  16,900
  17,712
  18,567
  19,466
  20,412
Interest expense (income), $m
  348
  439
  458
  478
  502
  529
  559
  592
  627
  666
  707
  752
  800
  850
  905
  962
  1,023
  1,088
  1,156
  1,229
  1,305
  1,386
  1,471
  1,561
  1,656
  1,756
  1,861
  1,972
  2,088
  2,211
  2,340
Earnings before tax, $m
  3,379
  3,450
  3,530
  3,619
  3,718
  3,826
  3,943
  4,070
  4,207
  4,353
  4,531
  4,697
  4,875
  5,063
  5,263
  5,475
  5,699
  5,936
  6,186
  6,450
  6,729
  7,023
  7,333
  7,659
  8,003
  8,364
  8,745
  9,146
  9,567
  10,010
Tax expense, $m
  912
  931
  953
  977
  1,004
  1,033
  1,065
  1,099
  1,136
  1,175
  1,223
  1,268
  1,316
  1,367
  1,421
  1,478
  1,539
  1,603
  1,670
  1,742
  1,817
  1,896
  1,980
  2,068
  2,161
  2,258
  2,361
  2,469
  2,583
  2,703
Net income, $m
  2,467
  2,518
  2,577
  2,642
  2,714
  2,793
  2,879
  2,971
  3,071
  3,178
  3,307
  3,429
  3,559
  3,696
  3,842
  3,997
  4,160
  4,333
  4,516
  4,709
  4,912
  5,127
  5,353
  5,591
  5,842
  6,106
  6,384
  6,676
  6,984
  7,308

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  28,108
  28,755
  29,494
  30,323
  31,243
  32,251
  33,350
  34,538
  35,819
  37,194
  38,665
  40,234
  41,905
  43,680
  45,565
  47,561
  49,675
  51,910
  54,272
  56,766
  59,397
  62,172
  65,097
  68,179
  71,424
  74,842
  78,439
  82,224
  86,206
  90,394
Adjusted assets (=assets-cash), $m
  28,108
  28,755
  29,494
  30,323
  31,243
  32,251
  33,350
  34,538
  35,819
  37,194
  38,665
  40,234
  41,905
  43,680
  45,565
  47,561
  49,675
  51,910
  54,272
  56,766
  59,397
  62,172
  65,097
  68,179
  71,424
  74,842
  78,439
  82,224
  86,206
  90,394
Revenue / Adjusted assets
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
  0.325
Average production assets, $m
  25,067
  25,643
  26,302
  27,042
  27,862
  28,762
  29,741
  30,801
  31,944
  33,170
  34,481
  35,881
  37,371
  38,954
  40,635
  42,415
  44,300
  46,294
  48,400
  50,624
  52,970
  55,445
  58,053
  60,802
  63,696
  66,744
  69,952
  73,327
  76,878
  80,614
Working capital, $m
  -877
  -897
  -920
  -946
  -975
  -1,006
  -1,041
  -1,078
  -1,118
  -1,160
  -1,206
  -1,255
  -1,307
  -1,363
  -1,422
  -1,484
  -1,550
  -1,620
  -1,693
  -1,771
  -1,853
  -1,940
  -2,031
  -2,127
  -2,228
  -2,335
  -2,447
  -2,565
  -2,690
  -2,820
Total debt, $m
  8,472
  8,860
  9,304
  9,801
  10,353
  10,958
  11,617
  12,331
  13,099
  13,924
  14,806
  15,748
  16,750
  17,816
  18,946
  20,144
  21,413
  22,754
  24,171
  25,667
  27,246
  28,911
  30,666
  32,515
  34,462
  36,513
  38,671
  40,942
  43,331
  45,844
Total liabilities, $m
  16,865
  17,253
  17,696
  18,194
  18,746
  19,351
  20,010
  20,723
  21,492
  22,316
  23,199
  24,140
  25,143
  26,208
  27,339
  28,537
  29,805
  31,146
  32,563
  34,059
  35,638
  37,303
  39,058
  40,907
  42,855
  44,905
  47,063
  49,334
  51,724
  54,237
Total equity, $m
  11,243
  11,502
  11,797
  12,129
  12,497
  12,900
  13,340
  13,815
  14,328
  14,878
  15,466
  16,094
  16,762
  17,472
  18,226
  19,025
  19,870
  20,764
  21,709
  22,706
  23,759
  24,869
  26,039
  27,271
  28,570
  29,937
  31,375
  32,890
  34,482
  36,158
Total liabilities and equity, $m
  28,108
  28,755
  29,493
  30,323
  31,243
  32,251
  33,350
  34,538
  35,820
  37,194
  38,665
  40,234
  41,905
  43,680
  45,565
  47,562
  49,675
  51,910
  54,272
  56,765
  59,397
  62,172
  65,097
  68,178
  71,425
  74,842
  78,438
  82,224
  86,206
  90,395
Debt-to-equity ratio
  0.750
  0.770
  0.790
  0.810
  0.830
  0.850
  0.870
  0.890
  0.910
  0.940
  0.960
  0.980
  1.000
  1.020
  1.040
  1.060
  1.080
  1.100
  1.110
  1.130
  1.150
  1.160
  1.180
  1.190
  1.210
  1.220
  1.230
  1.240
  1.260
  1.270
Adjusted equity ratio
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400
  0.400

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,467
  2,518
  2,577
  2,642
  2,714
  2,793
  2,879
  2,971
  3,071
  3,178
  3,307
  3,429
  3,559
  3,696
  3,842
  3,997
  4,160
  4,333
  4,516
  4,709
  4,912
  5,127
  5,353
  5,591
  5,842
  6,106
  6,384
  6,676
  6,984
  7,308
Depreciation, amort., depletion, $m
  2,528
  2,586
  2,652
  2,726
  2,808
  2,898
  2,996
  3,102
  3,216
  3,338
  3,448
  3,588
  3,737
  3,895
  4,063
  4,242
  4,430
  4,629
  4,840
  5,062
  5,297
  5,544
  5,805
  6,080
  6,370
  6,674
  6,995
  7,333
  7,688
  8,061
Funds from operations, $m
  4,995
  5,104
  5,228
  5,368
  5,522
  5,690
  5,874
  6,073
  6,287
  6,516
  6,756
  7,017
  7,296
  7,592
  7,906
  8,238
  8,590
  8,963
  9,356
  9,771
  10,209
  10,671
  11,158
  11,671
  12,212
  12,780
  13,379
  14,009
  14,672
  15,369
Change in working capital, $m
  -17
  -20
  -23
  -26
  -29
  -31
  -34
  -37
  -40
  -43
  -46
  -49
  -52
  -55
  -59
  -62
  -66
  -70
  -74
  -78
  -82
  -87
  -91
  -96
  -101
  -107
  -112
  -118
  -124
  -131
Cash from operations, $m
  5,012
  5,124
  5,251
  5,393
  5,550
  5,722
  5,908
  6,110
  6,327
  6,559
  6,801
  7,066
  7,348
  7,647
  7,964
  8,301
  8,656
  9,032
  9,430
  9,849
  10,291
  10,758
  11,250
  11,767
  12,313
  12,887
  13,491
  14,127
  14,796
  15,500
Maintenance CAPEX, $m
  -2,458
  -2,507
  -2,564
  -2,630
  -2,704
  -2,786
  -2,876
  -2,974
  -3,080
  -3,194
  -3,317
  -3,448
  -3,588
  -3,737
  -3,895
  -4,063
  -4,242
  -4,430
  -4,629
  -4,840
  -5,062
  -5,297
  -5,544
  -5,805
  -6,080
  -6,370
  -6,674
  -6,995
  -7,333
  -7,688
New CAPEX, $m
  -492
  -577
  -659
  -740
  -820
  -900
  -980
  -1,060
  -1,142
  -1,226
  -1,312
  -1,399
  -1,490
  -1,584
  -1,680
  -1,781
  -1,885
  -1,993
  -2,106
  -2,224
  -2,347
  -2,475
  -2,608
  -2,748
  -2,895
  -3,048
  -3,208
  -3,376
  -3,551
  -3,735
Cash from investing activities, $m
  -2,950
  -3,084
  -3,223
  -3,370
  -3,524
  -3,686
  -3,856
  -4,034
  -4,222
  -4,420
  -4,629
  -4,847
  -5,078
  -5,321
  -5,575
  -5,844
  -6,127
  -6,423
  -6,735
  -7,064
  -7,409
  -7,772
  -8,152
  -8,553
  -8,975
  -9,418
  -9,882
  -10,371
  -10,884
  -11,423
Free cash flow, $m
  2,063
  2,041
  2,028
  2,023
  2,026
  2,036
  2,053
  2,075
  2,104
  2,139
  2,173
  2,219
  2,270
  2,326
  2,389
  2,456
  2,530
  2,609
  2,694
  2,785
  2,883
  2,986
  3,097
  3,214
  3,338
  3,470
  3,609
  3,756
  3,912
  4,077
Issuance/(repayment) of debt, $m
  335
  388
  443
  498
  552
  605
  659
  713
  769
  825
  882
  942
  1,002
  1,065
  1,131
  1,198
  1,268
  1,341
  1,417
  1,496
  1,579
  1,665
  1,755
  1,849
  1,947
  2,050
  2,158
  2,271
  2,389
  2,513
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  335
  388
  443
  498
  552
  605
  659
  713
  769
  825
  882
  942
  1,002
  1,065
  1,131
  1,198
  1,268
  1,341
  1,417
  1,496
  1,579
  1,665
  1,755
  1,849
  1,947
  2,050
  2,158
  2,271
  2,389
  2,513
Total cash flow (excl. dividends), $m
  2,398
  2,429
  2,471
  2,521
  2,578
  2,641
  2,712
  2,789
  2,873
  2,963
  3,055
  3,160
  3,272
  3,392
  3,519
  3,655
  3,798
  3,950
  4,111
  4,281
  4,461
  4,651
  4,852
  5,063
  5,286
  5,520
  5,767
  6,028
  6,301
  6,590
Retained Cash Flow (-), $m
  -201
  -259
  -296
  -332
  -368
  -403
  -439
  -476
  -512
  -550
  -588
  -628
  -668
  -710
  -754
  -799
  -845
  -894
  -945
  -997
  -1,052
  -1,110
  -1,170
  -1,233
  -1,298
  -1,367
  -1,439
  -1,514
  -1,593
  -1,675
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  2,197
  2,170
  2,176
  2,189
  2,210
  2,238
  2,272
  2,313
  2,360
  2,414
  2,467
  2,532
  2,604
  2,682
  2,766
  2,856
  2,953
  3,056
  3,166
  3,284
  3,409
  3,541
  3,682
  3,830
  3,987
  4,153
  4,329
  4,514
  4,709
  4,914
Discount rate, %
  5.00
  5.25
  5.51
  5.79
  6.08
  6.38
  6.70
  7.04
  7.39
  7.76
  8.14
  8.55
  8.98
  9.43
  9.90
  10.39
  10.91
  11.46
  12.03
  12.63
  13.27
  13.93
  14.63
  15.36
  16.13
  16.93
  17.78
  18.67
  19.60
  20.58
PV of cash for distribution, $m
  2,092
  1,959
  1,852
  1,748
  1,646
  1,544
  1,443
  1,343
  1,243
  1,143
  1,043
  946
  851
  760
  671
  587
  507
  434
  366
  304
  249
  201
  159
  124
  95
  71
  52
  37
  26
  18
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Canadian National Railway Company is engaged in the rail and related transportation business. The Company's network of approximately 20,000 route miles of track spans Canada and mid-America, connecting approximately three coasts, including the Atlantic, the Pacific and the Gulf of Mexico and serving the cities and ports of Vancouver, Prince Rupert (British Columbia), Montreal, Halifax, New Orleans, and Mobile (Alabama), and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth (Minnesota)/Superior (Wisconsin), and Jackson (Mississippi), with connections to all points in North America. Its network and connections to all Class I railroads provide its customers access to the three North American Free Trade Agreement nations. It carries over 300 million tons of cargo, serving exporters, importers, retailers, farmers and manufacturers. Its freight includes seven commodity representing a portfolio of goods.

FINANCIAL RATIOS  of  Canadian National Railway (CNI)

Valuation Ratios
P/E Ratio 25
Price to Sales 7.5
Price to Book 6.1
Price to Tangible Book
Price to Cash Flow 17.5
Price to Free Cash Flow 36.2
Growth Rates
Sales Growth Rate -4.6%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -0.4%
Cap. Spend. - 3 Yr. Gr. Rate 6.4%
Financial Strength
Quick Ratio 0
Current Ratio 0.2
LT Debt to Equity 63.7%
Total Debt to Equity 73.7%
Interest Coverage 11
Management Effectiveness
Return On Assets 10.9%
Ret/ On Assets - 3 Yr. Avg. 11.1%
Return On Total Capital 14.2%
Ret/ On T. Cap. - 3 Yr. Avg. 14.7%
Return On Equity 24.4%
Return On Equity - 3 Yr. Avg. 24.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 67.9%
Gross Margin - 3 Yr. Avg. 65.9%
EBITDA Margin 55%
EBITDA Margin - 3 Yr. Avg. 51.4%
Operating Margin 44.1%
Oper. Margin - 3 Yr. Avg. 41.3%
Pre-Tax Margin 40.9%
Pre-Tax Margin - 3 Yr. Avg. 38.5%
Net Profit Margin 30.2%
Net Profit Margin - 3 Yr. Avg. 28.1%
Effective Tax Rate 26.1%
Eff/ Tax Rate - 3 Yr. Avg. 27%
Payout Ratio 31.8%

CNI stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CNI stock intrinsic value calculation we used $8956 million for the last fiscal year's total revenue generated by Canadian National Railway. The default revenue input number comes from 2016 income statement of Canadian National Railway. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CNI stock valuation model: a) initial revenue growth rate of 2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5%, whose default value for CNI is calculated based on our internal credit rating of Canadian National Railway, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Canadian National Railway.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CNI stock the variable cost ratio is equal to 58.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CNI stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Canadian National Railway.

Corporate tax rate of 27% is the nominal tax rate for Canadian National Railway. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CNI stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CNI are equal to 274.4%.

Life of production assets of 10 years is the average useful life of capital assets used in Canadian National Railway operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CNI is equal to -9.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $11042 million for Canadian National Railway - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 776 million for Canadian National Railway is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Canadian National Railway at the current share price and the inputted number of shares is $68.5 billion.

RELATED COMPANIES Price Int.Val. Rating
CP Canadian Pacif 199.98 113.59  sell
GWR Genesee&Wyomin 87.36 50.88  sell
UNP Union Pacific 149.25 81.15  sell
CSX CSX 73.44 14.62  str.sell
KSU Kansas City So 113.76 18.06  str.sell
NSC Norfolk Southe 173.47 90.83  sell

COMPANY NEWS

▶ CN Announces Early Redemption of Notes Due March 1, 2019   [Jul-31-18 04:45PM  GlobeNewswire]
▶ All Aboard Canadian National Railway   [Jul-27-18 01:09PM  TheStreet.com]
▶ CN announces C$800-million debt offering   [Jul-26-18 09:45PM  GlobeNewswire]
▶ CN: 2Q Earnings Snapshot   [04:45PM  Associated Press]
▶ CN declares third-quarter 2018 dividend   [04:02PM  GlobeNewswire]
▶ CN reports Q2-2018 financial results   [04:01PM  GlobeNewswire]
▶ CN establishes its first Community Board in Edmonton   [Jun-26-18 07:00PM  GlobeNewswire]
▶ 4 Great Stocks You Can Buy and Hold Forever   [May-30-18 09:20AM  Motley Fool]
▶ Stifel Rides The Rails, Initiates Seven Stocks   [May-24-18 12:42PM  Benzinga]
▶ Amputees sue railroad in Iowa, saying it creates danger   [May-17-18 03:55PM  Associated Press]
▶ CN current to grain car order demand in Western Canada   [May-02-18 12:45PM  GlobeNewswire]
▶ CN announces election of directors   [Apr-24-18 04:05PM  GlobeNewswire]
▶ CN: 1Q Earnings Snapshot   [04:11PM  Associated Press]
▶ CN declares second-quarter 2018 dividend   [04:02PM  GlobeNewswire]
▶ CN reports Q1-2018 financial results   [04:01PM  GlobeNewswire]
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.