DCF Tool


Canadian National Railway Co. – Line-Haul Railroads
The Canadian National Railway Company is a Canadian Class I freight railway headquartered in Montreal, Quebec, which serves Canada and the Midwestern and Southern United States. 
Analysis Results
Intrinsic Value $165.70
Latest Price $118.72
Relative Value 28% undervalued
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Cash Flow (Billions)
Analysis Parameters
New Ticker
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 8.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 2.83 2.72
2024 3.07 2.84
2025 3.33 2.96
2026 3.62 3.08
2027 3.92 3.21
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 118 billion. This corresponds to a present value of 92.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 14.8 billion. Adding in the terminal value gives a total present value of 107 billion.

There are presently 648.0 million outstanding shares, so the intrinsic value per share is 165.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,370,757,949
Current Cash 241,718,560
Current Liabilities 2,831,349,718
Current Debt 778,952,798
Non-Cash Working Capital (NCWC) 76,642,470
Change in NCWC 95,493,929
EBIT 5,040,716,312
Tax Provision 1,212,277,534
Depreciation and Amortization 1,274,181,067
Capital Expenditure -2,026,603,780
Unlevered Free Cash Flow 3,157,707,632
Current Assets 2,691,045,792
Current Cash 658,230,115
Current Liabilities 2,450,689,688
Current Debt 399,022,551
Non-Cash Working Capital (NCWC) -18,851,459
Change in NCWC -151,477,141
EBIT 4,369,611,133
Tax Provision 1,131,873,026
Depreciation and Amortization 1,255,192,987
Capital Expenditure -2,270,815,349
Unlevered Free Cash Flow 2,208,257,778
Current Assets 2,434,348,325
Current Cash 446,532,623
Current Liabilities 2,569,328,309
Current Debt 714,138,290
Non-Cash Working Capital (NCWC) 132,625,682
Change in NCWC -180,852,259
EBIT 4,130,230,572
Tax Provision 770,641,539
Depreciation and Amortization 1,246,995,322
Capital Expenditure -2,246,788,928
Unlevered Free Cash Flow 2,057,004,068
Current Assets 2,169,052,752
Current Cash 49,052,783
Current Liabilities 3,285,770,017
Current Debt 1,479,247,990
Non-Cash Working Capital (NCWC) 313,477,941
Change in NCWC 206,371,110
EBIT 4,286,753,372
Tax Provision 929,703,529
Depreciation and Amortization 1,197,194,487
Capital Expenditure -2,962,328,228
Unlevered Free Cash Flow 1,770,202,596
Current Assets 2,001,283,814
Current Cash 195,139,844
Current Liabilities 2,567,629,527
Current Debt 868,592,388
Non-Cash Working Capital (NCWC) 107,106,831
Change in NCWC -65,588,254
EBIT 4,029,711,141
Tax Provision 993,305,823
Depreciation and Amortization 974,965,612
Capital Expenditure -2,590,371,389
Unlevered Free Cash Flow 1,388,451,554
Current Assets 1,742,867,463
Current Cash 55,708,092
Current Liabilities 3,169,790,460
Current Debt 1,655,326,175
Non-Cash Working Capital (NCWC) 172,695,086
Change in NCWC -132,947,415
EBIT 4,423,222,540
Tax Provision -314,352,807
Depreciation and Amortization 1,019,458,091
Capital Expenditure -2,127,253,301
Unlevered Free Cash Flow 3,182,479,915
Current Assets 1,563,079,496
Current Cash 130,565,729
Current Liabilities 2,231,487,007
Current Debt 1,104,615,742
Non-Cash Working Capital (NCWC) 305,642,502
Change in NCWC -14,514,797
EBIT 3,940,711,097
Tax Provision 954,761,894
Depreciation and Amortization 908,767,148
Capital Expenditure -1,999,287,727
Unlevered Free Cash Flow 1,806,307,914
Current Assets 1,552,474,475
Current Cash 110,324,475
Current Liabilities 2,161,782,850
Current Debt 1,039,790,150
Non-Cash Working Capital (NCWC) 320,157,300
Change in NCWC 13,165,146
EBIT 3,797,180,950
Tax Provision 963,356,200
Depreciation and Amortization 835,004,850
Capital Expenditure -1,951,228,950
Unlevered Free Cash Flow 1,653,286,183

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