Union Pacific‘s CAPE ratio

The CAPE ratio for Union Pacific compares its current stock price to the average inflation-adjusted earnings over the past 10 years. As a leading railroad company, Union Pacific typically has a moderate CAPE ratio due to its stable earnings and essential role in transportation. A high CAPE ratio may suggest overvaluation, indicating lower future returns, while a low CAPE could signal undervaluation and growth potential. Investors use Union Pacific’s CAPE ratio to evaluate its long-term valuation, considering its consistent profitability and strategic importance in freight transportation.