Merge Of Union Pacific & Norfolk Southern Signals Better Days For Rail
Money is ruthless. The genius of compound returns vivifies the previous truth.
Fiscal Year: January - December
Norfolk Southern Corporation (NSC), listed on the NYSE, has a market capitalization of $. As of Aug 19, 2025, the stock is trading at $284.71 per share, offering investors a clear view of its current market value. Norfolk Southern Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 19.24, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Norfolk Southern Corporation also offers a dividend yield of 1.9%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Norfolk Southern Corporation (NSC) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Norfolk Southern Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Norfolk Southern Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Norfolk Southern Corporation is 31.83, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Norfolk Southern Corporation (NSC) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Norfolk Southern Corporation (NSC) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Norfolk Southern Corporation (NSC) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Norfolk Southern Corporation. To access the full SS Score, consider upgrading your subscription.
Norfolk Southern Corporation is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 19.24. Investors should compare these metrics with industry peers to gauge whether Norfolk Southern Corporation is outperforming or underperforming within its sector.
Money is ruthless. The genius of compound returns vivifies the previous truth.
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Seven associations of shippers have reportedly expressed concern the planned deal would significantly increase the power of the merged railroad to raise prices or reduce service standards.
U.S. railroad customer groups have demanded regulators block or put onerous conditions on the proposed merger of Union Pacific and Norfolk Southern , the Financial Times reported on Sunday.
Senate Democratic Leader Chuck Schumer criticized Union Pacific's plan to acquire Norfolk Southern in a $85 billion deal to create the first U.S. coast-to-coast freight rail operator.
The Surface Transportation Board said on Wednesday that Union Pacific and Norfolk Southern have formally filed a notice of intent to combine, triggering the U.S. regulatory review process for a propos...
Jim Chadwick, President of Ancora Alternatives, joins CNBC's Morgan Brennan to break down the Norfolk Southern–Union Pacific merger, how his proxy fight at NSC helped pave the way, and his investor pl...
This is a developing story. Check back for updates.
Union Pacific Corp (NYSE: UNP) announced a blockbuster merger that values each share of peer Norfolk Southern Corp (NYSE: NSC) at $320 – huge premium on its previous close – on Tuesday. Still, NSC sha...
Donald Broughton, Broughton Capital managing partner, joins 'The Exchange' to discuss Union Pacific set to buy Norfolk Southern and UPS withdrawing its full year guidance.
The Union Pacific/Norfolk Southern merger could create the first modern true transcontinental railroad, unlocking massive efficiencies and strengthening U.S. supply chains. I see $2.75 billion in annu...
Norfolk Southern Corporation (NYSE:NSC) M&A Conference Call July 29, 2025 8:30 AM ET Company Participants Jason A. Zampi - Executive VP & CFO Norfolk Southern Corporation Jennifer L.
Union Pacific's proposed purchase of smaller rival rail operator Norfolk Southern will need to be approved by the Surface Transportation Board in Washington, an independent federal agency that oversee...
Morning Brief anchor Julie Hyman breaks down the latest market news for July 29, 2025. Union Pacific agrees to acquire Norfolk Southern for an $85 billion stock and cash deal.
The ball is in Warren Buffett's court.
Union Pacific CEO Jim Vena and Norfolk Southern CEO Mark George join CNBC's 'Squawk on the Street' to discuss Union Pacific's $85 billion deal to acquire Norfolk Southern, how the companies are thinki...
The largest rail union in the United States said on Tuesday it intends to oppose Union Pacific's proposed $85 billion acquisition of smaller rival Norfolk Southern in regulatory proceedings, citing co...
Union Pacific agrees to buy Norfolk Southern in a cash-and-stock transaction valued at $85 billion. The companies would combine to create a transcontinental railroad.
Union Pacific and Norfolk Southern announce a landmark $85 billion merger to create America's first transcontinental railroad, connecting over 50,000 route miles from coast to coast.
Railroad firms Union Pacific (UNP) and Norfolk Southern (NSC) said on Tuesday that they have agreed to a merger to create a $200 billion rail giant based on their current market capitalizations.
The combined railroads will span more than 50,000 route miles across 43 states.
Deal would create first transcontinental US railroad worth more than $200bn and could trigger wave of mergers
Tuesday, railroad Norfolk Southern announced second quarter earnings and, more importantly, a plan to merge with Union Pacific.
Delivers net income and EPS growth of 4% and 5%, respectively; adjusted net income and EPS improved 7% and 8%, respectively Expects 2%-3% growth in revenues and 100–150 bps of improvement in adjusted ...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2025 | 1.33B | 4,634.25% | Est @4,634.2% |
2026 | 2.62B | 97.89% | Analyst x7 |
2027 | 2.73B | 4.23% | Analyst x3 |
2028 | 2.98B | 9.03% | Analyst x1 |
2029 | 3.30B | 10.60% | Analyst x1 |
2030 | 3.45B | 4.79% | Est @4.8% |
2031 | 3.59B | 4.04% | Est @4.0% |
2032 | 3.72B | 3.53% | Est @3.5% |
2033 | 3.84B | 3.16% | Est @3.2% |
2034 | 3.94B | 2.71% | Est @2.7% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2023A | 830.00M | 1.00 | 830.00M |
2024A | 28.00M | 1.00 | 28.00M |
2025E | 1.33B | 1.09 | 1.21B |
2026E | 2.62B | 1.19 | 2.20B |
2027E | 2.73B | 1.30 | 2.10B |
2028E | 2.98B | 1.42 | 2.10B |
2029E | 3.30B | 1.55 | 2.13B |
2030E | 3.45B | 1.69 | 2.05B |
2031E | 3.59B | 1.84 | 1.95B |
2032E | 3.72B | 2.01 | 1.85B |
2033E | 3.84B | 2.19 | 1.75B |
2034E | 3.94B | 2.39 | 1.65B |
Terminal | 61.04B | 2.39 | 25.50B |
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