Norfolk Southern Valuation

NSC Stock  USD 298.32  6.87  2.36%   
At this time, the firm appears to be fairly valued. Norfolk Southern secures a last-minute Real Value of $299.77 per share. The latest price of the firm is $298.32. Our model forecasts the value of Norfolk Southern from analyzing the firm fundamentals such as Return On Equity of 0.19, current valuation of 86.89 B, and Profit Margin of 0.24 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Norfolk Southern's valuation include:
Price Book
4.5847
Enterprise Value
86.9 B
Enterprise Value Ebitda
14.8437
Price Sales
5.8563
Forward PE
22.3714
Fairly Valued
Today
298.32
Please note that Norfolk Southern's price fluctuation is very steady at this time. Calculation of the real value of Norfolk Southern is based on 3 months time horizon. Increasing Norfolk Southern's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Norfolk Southern is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Norfolk Stock. However, Norfolk Southern's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  298.32 Real  299.77 Target  306.89 Hype  298.32 Naive  296.51
The real value of Norfolk Stock, also known as its intrinsic value, is the underlying worth of Norfolk Southern Company, which is reflected in its stock price. It is based on Norfolk Southern's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Norfolk Southern's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
268.49
Downside
299.77
Real Value
300.91
Upside
Estimating the potential upside or downside of Norfolk Southern helps investors to forecast how Norfolk stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Norfolk Southern more accurately as focusing exclusively on Norfolk Southern's fundamentals will not take into account other important factors:
Earnings
Estimates
LowProjectedHigh
2.442.632.81
Details
Hype
Prediction
LowEstimatedHigh
297.18298.32299.46
Details
Potential
Annual Dividend
LowForecastedHigh
3.994.054.11
Details
27 Analysts
Consensus
LowTarget PriceHigh
279.27306.89340.65
Details
Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Norfolk Southern's intrinsic value based on its ongoing forecasts of Norfolk Southern's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Norfolk Southern's closest peers. If more than one evaluation category is relevant for Norfolk Southern we suggest using both methods to arrive at a better estimate.

Norfolk Southern Cash

1.61 Billion

Norfolk Revenue by Product

Norfolk Southern Total Value Analysis

Norfolk Southern is now projected to have company total value of 86.89 B with market capitalization of 71.33 B, debt of 17.09 B, and cash on hands of 1.64 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Norfolk Southern fundamentals before making security assessment based on enterprise value of the company
  Takeover PriceMarket CapDebt ObligationsCash
86.89 B
71.33 B
17.09 B
1.64 B

Norfolk Southern Investor Information

About 77.0% of the company shares are owned by institutional investors. The book value of Norfolk Southern was now reported as 69.28. The company recorded earning per share (EPS) of 11.75. Norfolk Southern last dividend was issued on the 6th of February 2026. The entity had 3:1 split on the 10th of October 1997. Based on the analysis of Norfolk Southern's profitability, liquidity, and operating efficiency, Norfolk Southern may be sliding down financialy. It has an above-average risk of going through some form of financial distress next quarter.
Current ValueLast YearChange From Last Year 10 Year Trend
Operating Profit Margin0.190.3291
Way Down
Pretty Stable
Total Cash From Operating Activities2.5 B4.4 B
Way Down
Slightly volatile
Operating Income2.3 BB
Way Down
Slightly volatile

Norfolk Southern Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Norfolk Southern has an asset utilization ratio of 26.93 percent. This indicates that the Company is making $0.27 for each dollar of assets. An increasing asset utilization means that Norfolk Southern is more efficient with each dollar of assets it utilizes for everyday operations.
 
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Covid
 
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Norfolk Southern Profitability Analysis

Considering Norfolk Southern's profitability and operating efficiency indicators, Norfolk Southern may not be well positioned to generate adequate gross income at this time. It has a very high risk of underperforming in March. Profitability indicators assess Norfolk Southern's ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1985-09-30
Previous Quarter
711 M
Current Value
644 M
Quarterly Volatility
370.6 M
 
Black Monday
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
The current year's Gross Profit Margin is expected to grow to 0.47, whereas Gross Profit is forecasted to decline to about 3.4 B.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.470.4243
Significantly Up
Slightly volatile
Net Profit Margin0.130.2359
Way Down
Pretty Stable
Operating Profit Margin0.190.3291
Way Down
Pretty Stable
Pretax Profit Margin0.170.3009
Way Down
Very volatile
Return On Assets0.04220.0635
Way Down
Very volatile
Return On Equity0.110.1848
Way Down
Very volatile
For Norfolk Southern profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Norfolk Southern to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Norfolk Southern utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Norfolk Southern's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Norfolk Southern over time as well as its relative position and ranking within its peers.

Norfolk Southern Earnings per Share Projection vs Actual

By analyzing Norfolk Southern's earnings estimates, investors can diagnose different trends across Norfolk Southern's analyst sentiment over time as well as compare current EPS estimates against different timeframes. Please be aware that the consensus of earnings estimates for Norfolk Southern is based on EPS before non-recurring items and includes expenses related to employee stock options.
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Norfolk Southern is projected to generate 2.63 in earnings per share on the 31st of March 2026. Norfolk Southern earnings estimates show analyst consensus about projected Norfolk Southern EPS (Earning Per Share). It derives the highest and the lowest estimates based on Norfolk Southern's historical volatility. Many public companies, such as Norfolk Southern, manage the perception of their earnings on a regular basis to make sure that analyst estimates are accurate. Future earnings calculations are also an essential input when attempting to value a firm.

Norfolk Southern Ownership Allocation

Norfolk Southern maintains a total of 244.74 Million outstanding shares. The majority of Norfolk Southern outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Norfolk Southern to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Norfolk Southern. Please pay attention to any change in the institutional holdings of Norfolk Southern as this could imply that something significant has changed or is about to change at the company. Please note that on January 16, 2026, Representative Julie Johnson of US Congress acquired under $15k worth of Norfolk Southern's common stock.

Norfolk Southern Profitability Analysis

The company reported the last year's revenue of 12.18 B. Total Income to common stockholders was 2.87 B with profit before taxes, overhead, and interest of 5.6 B.

Norfolk Southern Past Distributions to stockholders

Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Norfolk Southern's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Norfolk Southern and how it compares across the competition.

About Norfolk Southern Valuation

The stock valuation mechanism determines Norfolk Southern's current worth on a weekly basis. Our valuation model uses a comparative analysis of Norfolk Southern. We calculate exposure to Norfolk Southern's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Norfolk Southern's related companies.
Last ReportedProjected for Next Year
Gross Profit5.2 B3.4 B
Pretax Profit Margin 0.30  0.17 
Operating Profit Margin 0.33  0.19 
Net Profit Margin 0.24  0.13 
Gross Profit Margin 0.42  0.47 

Norfolk Southern Quarterly Retained Earnings

12.89 Billion

Norfolk Southern's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Norfolk Southern's value is low or high relative to the company's performance and growth projections. Determining the market value of Norfolk Southern can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Norfolk Southern represents a small ownership stake in the entity. As a stockholder of Norfolk, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Norfolk Southern Dividends Analysis For Valuation

The current year's Dividends Paid is expected to grow to about 1.3 B. The current year's Dividend Yield is expected to grow to 0.03. At present, Norfolk Southern's Price Earnings Ratio is projected to increase based on the last few years of reporting. The current year's Price Earnings To Growth Ratio is expected to grow to 2.35, whereas Retained Earnings are forecasted to decline to about 8.3 B.
Last ReportedProjected for Next Year
Dividends Paid1.2 B1.3 B
Dividend Yield 0.02  0.03 
Dividend Payout Ratio 0.42  0.68 
Dividend Paid And Capex Coverage Ratio 3.59  3.77 
There are various types of dividends Norfolk Southern can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Norfolk shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Norfolk Southern directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Norfolk pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Norfolk Southern by the value of the dividends paid out.

Norfolk Southern Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
Common Stock Shares Outstanding224.8 M
Quarterly Earnings Growth Y O Y-0.113
Forward Price Earnings22.3714

Norfolk Southern Current Valuation Indicators

Valuation refers to the process of determining the present value of Norfolk Southern and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Norfolk we look at many different elements of the entity such as Norfolk's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Norfolk Southern, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Norfolk Southern's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Norfolk Southern's worth.

Complementary Tools for Norfolk Stock analysis

When running Norfolk Southern's price analysis, check to measure Norfolk Southern's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Norfolk Southern is operating at the current time. Most of Norfolk Southern's value examination focuses on studying past and present price action to predict the probability of Norfolk Southern's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Norfolk Southern's price. Additionally, you may evaluate how the addition of Norfolk Southern to your portfolios can decrease your overall portfolio volatility.
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