Canadian National Railway Company: No Margin Of Safety Despite Supposedly Attractive Valuation
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Canadian National Railway shares are trading 20% below their all-time high, offering a 2.48% dividend yield. Despite strong long-term growth prospects, short-term risks and a lack of margin of safety at a P/E ratio of 20.3 make the stock overvalued.
March 02, 2025 | 2:45 pm
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Canadian National Railway shares are 20% below their all-time high, with a 2.48% dividend yield. Despite strong long-term growth prospects, short-term risks and a lack of margin of safety at a P/E ratio of 20.3 make the stock overvalued.
The article highlights that CNI shares are trading below their all-time high, which might seem attractive. However, the current P/E ratio of 20.3 is considered high given the modest growth, indicating overvaluation. Short-term risks such as weak quarterly figures and trade tensions add to the downside potential.
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