Q: Hello, this is about your answer to a member about the valuation of CP versus CNR today. In your answer you stated that “CP is now cheaper than CNR on valuation (21X vs 24X).” Do you refer to the P/E ratio here? It appears there might be some discrepancy between the numbers you provided and what I found on TMX Money (P/E ratio 25.99 for CP vs 20.37 for CNR). Then, is CNR cheaper than CP? I am just trying to understand correctly. Thank you very much
5i Research Answer:
Yes; P/E, using FORWARD earnings estimates via Bloomberg consensus. Some sites reference trailing earnings. Today, using info we deem most reliable and estimates, CNR is cheaper on P/E.