Norfolk Southern Corporation (NSC) fair value: what the stock is really worth
As of Nov 4, 2026: fair value (intrinsic value) of Norfolk Southern Corporation stock $133, price $344, that is 61.5% below the price, quality 61 out of 100. Rating: strongly overvalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $173.18 – $352.98 · fair‑value band $70.68 – $198.52 · the $344.14 price screens above the $132.55 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 4, 2026.
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Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States.
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The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, beverages, and canned goods; chemicals, including sulfur and related chemicals, petroleum products comprising crude oil, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, sand, and natural gas liquids; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal.
It also transports overseas freight through various Atlantic and Gulf Coast ports; and operates an intermodal network. Norfolk Southern Corporation was incorporated in 1980 and is headquartered in Atlanta, Georgia.
Stock analysis
Norfolk Southern Corporation (NSC) currently trades at $344.14, while our model-based Fair Value estimate is $132.55, 61% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $234.08 per share, and 0 of the 24 models we run sit above the $344.14 price.
Bear case: the Asset-Based group reads lowest at $46.37, and 24 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $70.68 (bear) to $198.52 (bull), the price of $344.14 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 61/100 (solid quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Norfolk Southern Corporation reported revenue of $12.2B in FY2025 versus $11.1B in FY2021, a compound +2.3%/yr. Reported net income was $2.9B in FY2025, compounding −1.1%/yr from FY2021.
Key figures
Market cap $77.5B Large · P/E ratio 28.8 · P/S ratio 5.98 · EPS (TTM) $11.93 · Dividend yield 1.6% · Net margin 20.7% · Return on equity 16.8% · Return on assets (EBIT) 9.6%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 73 out of 100 (medium confidence).
What moves the price
The share trades about 3% below its 52-week high and 25% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −22% fair-value upside, at −61%, NSC screens richer than that median.
Fair Value models
Bear$70.68Fair Value $132.55Bull$198.52
Price $344.14 · Downside -61.5%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then ($5.53 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
In the last 6 months, no officer or director bought or sold shares on the open market.
BuyWilliam Clyburn Jr.Director204 shares at $294.79$60,137Dec 5, 2025
SaleAnil BhattEVP & CIDO900 shares at $281.60$253,440Nov 19, 2025
Plus 4 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+0.5%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−1.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.5%
Start year 2020 (pandemic). Over 10 years: +1.5% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.9%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+6.1%
Earnings growth per share plus dividend.
Earnings per share, growth per year+4.5%
Dividend (yield on the price)1.6%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.4.5% vs 8.5%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.35% → 33%
Pace: the 5-year rate starts in 2020 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+24.6%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about +21.7% a year for the price and +3.4% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (99 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Positive
Recent news coverage is more positive than average.
AI conclusion: The business draws a moderate moat from network scale and oligopoly pricing, yet thin signals on innovation and human capital limit durability assessment.
Main risk: Autonomous and assisted driving technologies in trucking could lower long-haul road costs and shift freight volumes or force lower prices on intermodal lanes served by Norfolk Southern.
Bull case: By deploying its own AI systems for predictive maintenance and inspections Norfolk Southern could cut operating costs and improve reliability enough to retain or gain share even against more efficient trucking.
Bear case: If autonomous trucking significantly lowers road costs or supplier issues cause repeated locomotive shortages the company could lose intermodal volumes and face sustained margin pressure from higher equipment expenses.
Norfolk Southern has cut its accident rate to the lowest level in more than a decade through sustained investment in safety programs. The proposed merger with Union Pacific would remove thousands of daily rail car handoffs and shift more freight from trucks, yet fuel price pressures and upcoming earnings will test near-term results. Will the long-term network efficiencies prove more durable than the short-term cost headwinds?
Compare Norfolk Southern Corporation with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Railroads · 108 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score61 · Above median
Fair Value upside−61.5% · Bottom 25%
Profitability
Return on equity (12 months)16.8% · Top 25%
Return on assets6.4% · Top 25%
Net margin (12 months)20.7% · Top 25%
Operating margin (12 months)35.4% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)13.6% · Top 25%
Dividend yield (12 months)1.6% · Below median
Balance sheet
Debt / equity1.06× · Highest 25%
Valuation Multiplesvs Railroads median · lower = cheaper
P/E (12 months)28.8× · Pricier than median
P/B4.98× · Priciest 25%
P/S (12 months)5.98× · Priciest 25%
Price / free cash flow35.9× · Priciest 25%
EV/EBITDA16.0× · Priciest 25%
PEG3.93× · Priciest 25%
Strength profile in five axes (Snowflake)
This stockSector peers
VALUE (fair-value potential)0· sector 16
FUTURE (revenue growth)68· sector 20
PAST (return on equity)67· sector 29
HEALTH (low debt)47· sector 91
DIVIDEND (yield)31· sector 44
VALUE 0: the price sits above our fair-value range.
For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.
Is Norfolk Southern Corporation (NSC) overvalued or undervalued?
As of Nov 4, 2026, our model estimates a fair value of $132.55 versus a price of $344.14, about 61% lower (overvalued).
What is the fair value of NSC?
Our model-based fair value for Norfolk Southern Corporation is $132.55 (as of Nov 4, 2026), built from audited fundamentals. The current price: $344.14.
What is the quality score of NSC?
Norfolk Southern Corporation has a Quality Score of 61/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Norfolk Southern Corporation (NSC)?
Our model-based price target is the fair value of $132.55 (as of Nov 4, 2026) from 24 valuation models. Cautious scenario $70.68, optimistic scenario $198.52. It is a calculation from audited fundamentals, not an analyst target.
What is the Norfolk Southern Corporation stock forecast for 2026?
Our models put fair value at $132.55, about 61% lower versus a price of $344.14 (overvalued). Cautious scenario $70.68, optimistic scenario $198.52. The calculation is refreshed regularly with new filings.
What is the revenue of Norfolk Southern Corporation (NSC)?
Norfolk Southern Corporation reported trailing-twelve-month revenue of about $13.0B (latest available figure, as of Nov 4, 2026).
Does Norfolk Southern Corporation pay a dividend?
Norfolk Southern Corporation currently shows a dividend yield of 1.57% relative to its recent price (as of Nov 4, 2026).
What growth is priced into Norfolk Southern Corporation (NSC)?
For today's price to be fair in a discounted-cash-flow model, Norfolk Southern Corporation would have to grow free cash flow by +24.6 % per year for five years (discount rate 9.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.5 % per year. As of Nov 4, 2026.
What discount rate (WACC) does the fair value of NSC use?
Our models discount Norfolk Southern Corporation at 9.9 %: a base by market capitalisation (large), damped by beta 1.28, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Norfolk Southern Corporation that is +24.6 % per year a year over ten years, using the same discount rate (9.9 %) and the same formula as our fair value.
How much growth has Norfolk Southern Corporation (NSC) delivered so far?
Over the past 5 years revenue at Norfolk Southern Corporation grew +4.5 % a year. The price currently implies +24.6 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Norfolk Southern Corporation (NSC) growing?
The median revenue growth in the sector is +7.8 % a year. That is the yardstick for the growth priced into Norfolk Southern Corporation (+24.6 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Norfolk Southern Corporation (NSC)?
The free-cash-flow yield on the price is 2.78 %: that much free cash flow Norfolk Southern Corporation produces per unit of market value. When it exceeds the discount rate of our models (9.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Norfolk Southern Corporation (NSC)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Norfolk Southern Corporation it is $132.55 per share (as of Nov 4, 2026), against a price of $344.14. It is the blended result of 24 valuation models (cash flow, earnings, asset, dividend).
Is Norfolk Southern Corporation stock overvalued or undervalued in 2026?
As of Nov 4, 2026, NSC trades above its calculated fair value: price $344.14, fair value $132.55, a gap of about −61% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of NSC?
No. The price is what the market pays today ($344.14); the fair value is what the company's own numbers justify ($132.55). For Norfolk Southern Corporation the two are $211.59 per share apart. That gap is exactly why we show both numbers side by side.
How much is Norfolk Southern Corporation worth?
The market values Norfolk Southern Corporation at about $77.5B (market capitalisation, as of Nov 4, 2026). Per share that is $344.14; our models calculate a fair value of $132.55 per share.
What do the bullish and bearish scenarios say about NSC?
Our models span a range for Norfolk Southern Corporation: cautious scenario $70.68, base $132.55, optimistic $198.52 per share (as of Nov 4, 2026, price $344.14). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of NSC?
Norfolk Southern Corporation trades at a price-to-earnings ratio of 28.8 (as of Nov 4, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $132.55 is built from several models across several years. Median P/E at fiscal year-end, 10 fiscal years (2016 to 2025), reported earnings, FY2020, FY2023, FY2025 ex one-offs: 19.7. Other multiples: PEG 3.9, P/B 5.0, P/S 6.0, EV/EBITDA 16.0.
What is the PEG ratio of NSC?
The PEG ratio of Norfolk Southern Corporation is 3.93 (P/E divided by earnings growth, as of Nov 4, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Norfolk Southern Corporation (NSC)?
Balance-sheet figures for Norfolk Southern Corporation (as of Nov 4, 2026): return on equity 16.8%, debt of 1.06 per unit of equity. They feed the Quality Score of 61/100, which measures business quality independently of the share price.
How far is NSC from its 52-week high?
Norfolk Southern Corporation trades at $344.14, about 3% below its 52-week high of $352.98 and 25% above the low of $275.90 (as of Nov 4, 2026). Distance from the high says nothing about value: that is what the fair value of $132.55 is for.
Which stocks are comparable to Norfolk Southern Corporation?
From the same area (Industrials) we also value Union Pacific Corporation, CSX Corporation, Canadian Pacific Kansas City Limited, Canadian National Railway Company, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Norfolk Southern Corporation stock attractive at the current price?
The data as of Nov 4, 2026: price $344.14, calculated fair value $132.55 (−61%), Quality Score 61/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of NSC calculated?
We run Norfolk Southern Corporation through 24 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $132.55, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.6% above its aggregate fair value. Norfolk Southern Corporation itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Norfolk Southern Corporation (NSC)?
The closing price on Nov 4, 2026 was $344.14. Our model-based fair value is $132.55, about 61% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Norfolk Southern Corporation right now?
The price sits above even our optimistic bull case ($198.52). The favourable scenario is already priced in. The model range is unusually wide ($70.68 to $198.52). The outcome hinges heavily on assumptions, so read the point estimate with caution. Solid but not exceptional quality (61/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Norfolk Southern Corporation (NSC) come from?
Earnings per share at Norfolk Southern Corporation grew +7.3 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.9 %, EBIT margin −0.2 %, tax rate +2.3 %, residual (interest, one-offs) +0.3 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Norfolk Southern Corporation
How large is the market capitalisation of Norfolk Southern Corporation (NSC)?
The market capitalisation of Norfolk Southern Corporation is $77.5B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Norfolk Southern Corporation (NSC)?
The price-to-sales ratio of Norfolk Southern Corporation is 5.98 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Norfolk Southern Corporation (NSC)?
Earnings per share at Norfolk Southern Corporation are $11.93 (price ÷ EPS = P/E 28.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Norfolk Southern Corporation (NSC)?
The dividend yield of Norfolk Southern Corporation is 1.6% (payout 45.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Norfolk Southern Corporation (NSC)?
The net margin of Norfolk Southern Corporation is 20.7% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Norfolk Southern Corporation (NSC)?
The return on equity (ROE) of Norfolk Southern Corporation is 16.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Norfolk Southern Corporation (NSC)?
On an EBIT basis the return on assets of Norfolk Southern Corporation is 9.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Norfolk Southern Corporation (NSC)?
The operating margin of Norfolk Southern Corporation is 35.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Norfolk Southern Corporation (NSC)?
Revenue at Norfolk Southern Corporation is growing +13.6% versus a year earlier (3y avg −1.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Norfolk Southern Corporation (NSC)?
Earnings per share at Norfolk Southern Corporation are growing +6.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Norfolk Southern Corporation (NSC) carry?
The net debt of Norfolk Southern Corporation is $15.6B (fiscal year 2025, ≈ 7.2 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 4, 2026