Norfolk Southern Corporation (NSC) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-66.6%

$116.02

vs $347.19 price

Levered DCF

$53.37

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.58

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	22.64×	20.27×	29.4×	17.7×	24.48×	30.15×	18.81×	15.04×
P/B	4.17×	3.71×	4.2×	4.54×	5.39×	4.1×	3.37×	2.61×
P/S	5.33×	4.38×	4.41×	4.54×	6.6×	6.19×	4.53×	3.5×
EV / EBITDA	13.75×	12.55×	16.05×	12.08×	15.24×	16.85×	12.09×	9.92×
Gross margin	42.4%	31.0%	23.1%	37.1%	39.2%	34.7%	34.5%	34.6%
Operating margin	32.9%	31.0%	23.1%	37.1%	39.2%	34.7%	34.5%	34.6%
Net margin	23.6%	21.6%	15.0%	25.7%	27.0%	20.6%	24.1%	23.3%
Current ratio	0.85×	0.9×	1.24×	0.76×	0.86×	1.07×	0.9×	0.72×
Debt / equity	1.1×	1.22×	1.37×	1.22×	1.04×	0.89×	0.84×	0.73×
Interest coverage	5.06×	4.66×	3.89×	6.84×	6.76×	5.44×	6.45×	7.11×
Dividend yield	1.9%	2.3%	2.3%	2.0%	1.4%	1.6%	1.9%	2.1%
Payout ratio	42.3%	46.6%	67.0%	35.7%	34.2%	47.7%	34.9%	31.7%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	18.5%	18.3%	14.3%	25.7%	22.0%	13.6%	17.9%	17.4%
Return on invested capital	7.5%	7.3%	5.7%	10.1%	9.2%	7.4%	8.4%	8.9%
Return on assets	6.4%	6.0%	4.4%	8.4%	7.8%	5.3%	7.2%	7.4%
Free cash flow yield	3.3%	3.1%	1.5%	3.9%	3.8%	3.5%	3.7%	4.4%
Earnings yield	4.4%	4.9%	3.4%	5.7%	4.1%	3.3%	5.3%	6.6%
Enterprise value	$80.5B	$68.9B	$69.6B	$73B	$86.9B	$72.6B	$63.3B	$50.9B
Net debt / EBITDA	2.66×	2.89×	3.69×	2.5×	2.35×	2.78×	2.32×	2.1×
Cash conversion cycle (days)	-53	1	6	12	-2	13	7	2