The Long Case For Union Pacific

| About: Union Pacific (UNP)
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Summary

UNP trades at a discount when compared to forward EV/EBITDA and P/E multiples of comparable companies, implying undervaluation.

UNP pays a higher than average dividend than peers and is less leveraged.

We note that all tier-1 rail operators trade at P/E multiples significantly higher than historical averages – the historically high multiples are being supported by higher forecast growth rates for the industry.

[Originally published by the Queen's University Investment Council on 12/14/2014]

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.