NSC Relative Valuation
NSC's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NSC is overvalued; if below, it's undervalued.
Historical Valuation
Norfolk Southern Corp (NSC) is now in the Overvalued zone, suggesting that its current forward PE ratio of 22.94 is considered Overvalued compared with the five-year average of 19.34. The fair price of Norfolk Southern Corp (NSC) is between 233.62 to 276.95 according to relative valuation methord. Compared to the current price of 294.05 USD , Norfolk Southern Corp is Overvalued By 6.18%.
Relative Value
Fair Zone
233.62-276.95
Current Price：294.05
6.18%
Overvalued
22.94
PE
1Y
3Y
5Y
Trailing
Forward
14.04
EV/EBITDA
Norfolk Southern Corp. (NSC) has a current EV/EBITDA of 14.04. The 5-year average EV/EBITDA is 12.51. The thresholds are as follows: Strongly Undervalued below 10.31, Undervalued between 10.31 and 11.41, Fairly Valued between 13.62 and 11.41, Overvalued between 13.62 and 14.72, and Strongly Overvalued above 14.72. The current Forward EV/EBITDA of 14.04 falls within the Overvalued range.
18.58
EV/EBIT
Norfolk Southern Corp. (NSC) has a current EV/EBIT of 18.58. The 5-year average EV/EBIT is 16.23. The thresholds are as follows: Strongly Undervalued below 13.40, Undervalued between 13.40 and 14.82, Fairly Valued between 17.65 and 14.82, Overvalued between 17.65 and 19.07, and Strongly Overvalued above 19.07. The current Forward EV/EBIT of 18.58 falls within the Overvalued range.
5.27
PS
Norfolk Southern Corp. (NSC) has a current PS of 5.27. The 5-year average PS is 4.75. The thresholds are as follows: Strongly Undervalued below 3.32, Undervalued between 3.32 and 4.04, Fairly Valued between 5.47 and 4.04, Overvalued between 5.47 and 6.19, and Strongly Overvalued above 6.19. The current Forward PS of 5.27 falls within the Historic Trend Line -Fairly Valued range.
14.86
P/OCF
Norfolk Southern Corp. (NSC) has a current P/OCF of 14.86. The 5-year average P/OCF is 13.22. The thresholds are as follows: Strongly Undervalued below 10.06, Undervalued between 10.06 and 11.64, Fairly Valued between 14.81 and 11.64, Overvalued between 14.81 and 16.39, and Strongly Overvalued above 16.39. The current Forward P/OCF of 14.86 falls within the Overvalued range.
30.82
P/FCF
Norfolk Southern Corp. (NSC) has a current P/FCF of 30.82. The 5-year average P/FCF is 25.90. The thresholds are as follows: Strongly Undervalued below 14.81, Undervalued between 14.81 and 20.35, Fairly Valued between 31.45 and 20.35, Overvalued between 31.45 and 36.99, and Strongly Overvalued above 36.99. The current Forward P/FCF of 30.82 falls within the Historic Trend Line -Fairly Valued range.
Norfolk Southern Corp (NSC) has a current Price-to-Book (P/B) ratio of 4.36. Compared to its 3-year average P/B ratio of 4.05 , the current P/B ratio is approximately 7.48% higher. Relative to its 5-year average P/B ratio of 4.23, the current P/B ratio is about 3.02% higher. Norfolk Southern Corp (NSC) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 1.80%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 2.70% , the current FCF yield is about -100.00% lower.
4.36
P/B
Median3y
4.05
Median5y
4.23
3.18
FCF Yield
Median3y
1.80
Median5y
2.70
Competitors Valuation Multiple
The average P/S ratio for NSC's competitors is 5.27, providing a benchmark for relative valuation. Norfolk Southern Corp Corp (NSC) exhibits a P/S ratio of 5.27, which is 0.00% above the industry average. Given its robust revenue growth of 1.70%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NSC increased by 27.20% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 13.90 to 22.51.
The secondary factor is the Revenue Growth, contributed 1.70%to the performance.
Overall, the performance of NSC in the past 1 year is driven by P/E Change. Which is more unsustainable.
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FAQ
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