Norfolk Southern engages in the rail transportation of raw materials, intermediate products, and finished goods. The Company's system reaches various individual industries, electric generating facilities, mines, distribution centers, transload facilities and other businesses located in its service area. The company was founded in 1883 and is based Norfolk, Virginia.
NSC Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for NSC, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Norfolk Southern Corp ranked in the 45th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 3.5%. As for the metrics that stood out in our discounted cash flow analysis of Norfolk Southern Corp, consider:
The company's balance sheet shows it gets 81% of its capital from equity, and 19% of its capital from debt. Its equity weight surpasses that of 60.84% of free cash flow generating stocks in the Industrials sector.
Norfolk Southern Corp's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 22.12% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
CSX, BMI, FSTR, LMT, and KAI can be thought of as valuation peers to NSC, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Stock Price Analysis Norfolk Southern (NSC) is another railroad stock that has done really well. Shareholders have been significantly rewarded as results improved and valuations expanded. NSC stock price - historical chart What interests us now is not what happened, but whether Norfolk Southern is now a good stock to...
NORFOLK, Va., Sept. 29, 2020 /PRNewswire/ -- Norfolk Southern (NYSE: NSC) recognizes 58 chemical customers who earned its 2019 Thoroughbred Chemical Safety Award for safely handling products regulated as hazardous materials. These companies safely shipped at least 1,000 carloads – a…
NORFOLK, Va., Sept. 23, 2020 /PRNewswire/ -- In recognition of National Rail Safety Week, Norfolk Southern (NYSE: NSC) is relaunching a successful public awareness campaign to educate motorists about highway-rail grade-crossing safety. Building off successes in 2019, the railroad is using…