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Is this Large Market Cap Stock target price reasonable for Canadian Pacific Railway Limited (NYSE:CP)?

The company in question is, Canadian Pacific Railway Limited (NYSE:CP) currently with a stock price of 150.35 (-0.24% today). The market cap for Canadian Pacific Railway Limited is 22351.03, and is in the sector Services, and Railroads industry. The target price for Canadian Pacific Railway Limited is 159.84. Currently Canadian Pacific Railway Limited is trading with a P/E of 20.3, and a forward P/E of 16.26. Average volume for Canadian Pacific Railway Limited is 745.37 and so far today it is 744400.

Performance in the last year for Canadian Pacific Railway Limited has been 2.29%. For EPS growth, Canadian Pacific Railway Limited has seen a growth of -0.70%, and is looking to grow in the next year to 15.53%. More long term stats show that EPS growth has been 16.90% over the last five years and could be 8.39% for the next five years. Canadian Pacific Railway Limited has seen sales growth quarter over quarter at -12.20%, with EPS growth quarter over quarter at -9.10%. The 20-day simple moving average is 0.20%, with the 200-day simple moving average coming to 11.39%.

Since the IPO date for Canadian Pacific Railway Limited on the 12/30/1983, Canadian Pacific Railway Limited has seen performance year to date to be 18.74%. With Canadian Pacific Railway Limited trading at 150.35, the dividend yield is 1.01%, and the EPS is 7.41.

So could Canadian Pacific Railway Limited, be undervalued? Well as said before P/E is 20.3. The PEG is 2.42, P/S is 4.58 and the P/B is at 6.41. The P/cash is 320.22, with P/free cash flow at 92.4.

Canadian Pacific Railway Limited ability to deal with debt shows that the current ratio is 0.6, and the quick ratio is 0.5. This is with long term debt/equity at 1.79, and total debt/equity at 1.83.

In terms of margins, Canadian Pacific Railway Limited has a gross margin of 88.10%, an operating margin of 40.90% and a profit margin of 23.50%.Payout ratio for Canadian Pacific Railway Limited is 15.80%. Return on assets come to 7.90% with return on investment coming to 15.10%.

Insider ownership for Canadian Pacific Railway Limited, is at 8.06% and institutional ownership comes to 67.90%. Outstanding shares are at 148.66. While shares float is 146.72. The float short is currently 0.80%, and short ratio is 1.57.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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