Intrinsic value of Norfolk Southern - NSC

Previous Close

$138.90

  Intrinsic Value

$32.01

stock screener

  Rating & Target

str. sell

-77%

Previous close

$138.90

 
Intrinsic value

$32.01

 
Up/down potential

-77%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NSC stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

Please visit our new site that uses elements of artificial intelligence for stock valuation: artificial intelligence value of Norfolk Southern (NSC) stock.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  -5.93
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.16
  5.15
  5.13
  5.12
  5.11
  5.10
  5.09
  5.08
  5.07
  5.06
  5.06
  5.05
  5.05
  5.04
  5.04
Revenue, $m
  9,888
  10,462
  11,060
  11,685
  12,337
  13,019
  13,731
  14,476
  15,255
  16,070
  16,924
  17,817
  18,753
  19,733
  20,759
  21,835
  22,963
  24,145
  25,385
  26,685
  28,048
  29,477
  30,977
  32,550
  34,201
  35,933
  37,750
  39,657
  41,658
  43,759
  45,963
Variable operating expenses, $m
 
  7,595
  8,029
  8,483
  8,957
  9,451
  9,969
  10,509
  11,075
  11,667
  12,287
  12,935
  13,614
  14,326
  15,071
  15,852
  16,671
  17,530
  18,429
  19,373
  20,363
  21,400
  22,489
  23,631
  24,830
  26,087
  27,406
  28,791
  30,244
  31,769
  33,369
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  6,818
  7,595
  8,029
  8,483
  8,957
  9,451
  9,969
  10,509
  11,075
  11,667
  12,287
  12,935
  13,614
  14,326
  15,071
  15,852
  16,671
  17,530
  18,429
  19,373
  20,363
  21,400
  22,489
  23,631
  24,830
  26,087
  27,406
  28,791
  30,244
  31,769
  33,369
Operating income, $m
  3,070
  2,866
  3,030
  3,202
  3,380
  3,567
  3,762
  3,966
  4,180
  4,403
  4,637
  4,882
  5,138
  5,407
  5,688
  5,983
  6,292
  6,616
  6,955
  7,312
  7,685
  8,077
  8,488
  8,919
  9,371
  9,846
  10,343
  10,866
  11,414
  11,990
  12,594
EBITDA, $m
  4,100
  3,957
  4,183
  4,419
  4,666
  4,924
  5,193
  5,475
  5,770
  6,078
  6,401
  6,739
  7,092
  7,463
  7,851
  8,258
  8,685
  9,132
  9,601
  10,092
  10,608
  11,149
  11,716
  12,311
  12,935
  13,590
  14,277
  14,999
  15,756
  16,550
  17,384
Interest expense (income), $m
  0
  335
  380
  426
  474
  525
  577
  632
  690
  750
  813
  879
  948
  1,021
  1,097
  1,176
  1,259
  1,346
  1,438
  1,534
  1,634
  1,740
  1,850
  1,966
  2,088
  2,215
  2,349
  2,490
  2,637
  2,792
  2,955
Earnings before tax, $m
  2,582
  2,532
  2,651
  2,776
  2,906
  3,042
  3,185
  3,334
  3,490
  3,653
  3,824
  4,003
  4,190
  4,386
  4,592
  4,807
  5,033
  5,269
  5,518
  5,778
  6,051
  6,337
  6,637
  6,953
  7,283
  7,630
  7,994
  8,376
  8,777
  9,198
  9,639
Tax expense, $m
  914
  684
  716
  749
  785
  821
  860
  900
  942
  986
  1,032
  1,081
  1,131
  1,184
  1,240
  1,298
  1,359
  1,423
  1,490
  1,560
  1,634
  1,711
  1,792
  1,877
  1,966
  2,060
  2,158
  2,262
  2,370
  2,483
  2,603
Net income, $m
  1,668
  1,848
  1,935
  2,026
  2,121
  2,221
  2,325
  2,434
  2,548
  2,667
  2,791
  2,922
  3,059
  3,202
  3,352
  3,509
  3,674
  3,847
  4,028
  4,218
  4,417
  4,626
  4,845
  5,075
  5,317
  5,570
  5,836
  6,114
  6,407
  6,714
  7,037

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  956
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  34,892
  35,950
  38,007
  40,153
  42,395
  44,737
  47,185
  49,745
  52,423
  55,225
  58,157
  61,227
  64,442
  67,810
  71,338
  75,036
  78,911
  82,974
  87,233
  91,699
  96,383
  101,296
  106,450
  111,856
  117,528
  123,480
  129,725
  136,278
  143,155
  150,373
  157,948
Adjusted assets (=assets-cash), $m
  33,936
  35,950
  38,007
  40,153
  42,395
  44,737
  47,185
  49,745
  52,423
  55,225
  58,157
  61,227
  64,442
  67,810
  71,338
  75,036
  78,911
  82,974
  87,233
  91,699
  96,383
  101,296
  106,450
  111,856
  117,528
  123,480
  129,725
  136,278
  143,155
  150,373
  157,948
Revenue / Adjusted assets
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
  0.291
Average production assets, $m
  29,372
  31,071
  32,848
  34,703
  36,641
  38,665
  40,781
  42,993
  45,308
  47,729
  50,263
  52,917
  55,695
  58,606
  61,656
  64,851
  68,200
  71,712
  75,393
  79,253
  83,301
  87,547
  92,001
  96,674
  101,576
  106,720
  112,117
  117,781
  123,725
  129,963
  136,510
Working capital, $m
  -48
  -377
  -398
  -421
  -444
  -469
  -494
  -521
  -549
  -579
  -609
  -641
  -675
  -710
  -747
  -786
  -827
  -869
  -914
  -961
  -1,010
  -1,061
  -1,115
  -1,172
  -1,231
  -1,294
  -1,359
  -1,428
  -1,500
  -1,575
  -1,655
Total debt, $m
  10,212
  10,845
  12,167
  13,547
  14,989
  16,495
  18,069
  19,715
  21,437
  23,238
  25,124
  27,098
  29,165
  31,331
  33,599
  35,977
  38,469
  41,081
  43,820
  46,692
  49,704
  52,863
  56,176
  59,653
  63,300
  67,126
  71,142
  75,356
  79,778
  84,419
  89,290
Total liabilities, $m
  22,483
  23,116
  24,438
  25,818
  27,260
  28,766
  30,340
  31,986
  33,708
  35,509
  37,395
  39,369
  41,436
  43,602
  45,870
  48,248
  50,740
  53,352
  56,091
  58,963
  61,975
  65,134
  68,447
  71,924
  75,571
  79,397
  83,413
  87,627
  92,049
  96,690
  101,561
Total equity, $m
  12,409
  12,834
  13,568
  14,335
  15,135
  15,971
  16,845
  17,759
  18,715
  19,715
  20,762
  21,858
  23,006
  24,208
  25,468
  26,788
  28,171
  29,622
  31,142
  32,737
  34,409
  36,163
  38,003
  39,933
  41,958
  44,082
  46,312
  48,651
  51,106
  53,683
  56,388
Total liabilities and equity, $m
  34,892
  35,950
  38,006
  40,153
  42,395
  44,737
  47,185
  49,745
  52,423
  55,224
  58,157
  61,227
  64,442
  67,810
  71,338
  75,036
  78,911
  82,974
  87,233
  91,700
  96,384
  101,297
  106,450
  111,857
  117,529
  123,479
  129,725
  136,278
  143,155
  150,373
  157,949
Debt-to-equity ratio
  0.823
  0.850
  0.900
  0.950
  0.990
  1.030
  1.070
  1.110
  1.150
  1.180
  1.210
  1.240
  1.270
  1.290
  1.320
  1.340
  1.370
  1.390
  1.410
  1.430
  1.440
  1.460
  1.480
  1.490
  1.510
  1.520
  1.540
  1.550
  1.560
  1.570
  1.580
Adjusted equity ratio
  0.340
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357
  0.357

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,668
  1,848
  1,935
  2,026
  2,121
  2,221
  2,325
  2,434
  2,548
  2,667
  2,791
  2,922
  3,059
  3,202
  3,352
  3,509
  3,674
  3,847
  4,028
  4,218
  4,417
  4,626
  4,845
  5,075
  5,317
  5,570
  5,836
  6,114
  6,407
  6,714
  7,037
Depreciation, amort., depletion, $m
  1,030
  1,090
  1,153
  1,218
  1,286
  1,357
  1,431
  1,509
  1,590
  1,675
  1,764
  1,857
  1,954
  2,056
  2,163
  2,275
  2,393
  2,516
  2,645
  2,781
  2,923
  3,072
  3,228
  3,392
  3,564
  3,745
  3,934
  4,133
  4,341
  4,560
  4,790
Funds from operations, $m
  3,189
  2,938
  3,088
  3,244
  3,407
  3,578
  3,756
  3,942
  4,137
  4,341
  4,555
  4,779
  5,013
  5,258
  5,515
  5,785
  6,067
  6,363
  6,673
  6,999
  7,340
  7,698
  8,073
  8,467
  8,881
  9,314
  9,770
  10,247
  10,748
  11,274
  11,826
Change in working capital, $m
  155
  -21
  -22
  -22
  -23
  -25
  -26
  -27
  -28
  -29
  -31
  -32
  -34
  -35
  -37
  -39
  -41
  -43
  -45
  -47
  -49
  -51
  -54
  -57
  -59
  -62
  -65
  -69
  -72
  -76
  -79
Cash from operations, $m
  3,034
  2,959
  3,109
  3,266
  3,431
  3,602
  3,782
  3,969
  4,165
  4,371
  4,586
  4,811
  5,046
  5,293
  5,552
  5,823
  6,107
  6,405
  6,718
  7,045
  7,389
  7,749
  8,127
  8,524
  8,940
  9,377
  9,835
  10,316
  10,820
  11,350
  11,906
Maintenance CAPEX, $m
  0
  -1,031
  -1,090
  -1,153
  -1,218
  -1,286
  -1,357
  -1,431
  -1,509
  -1,590
  -1,675
  -1,764
  -1,857
  -1,954
  -2,056
  -2,163
  -2,275
  -2,393
  -2,516
  -2,645
  -2,781
  -2,923
  -3,072
  -3,228
  -3,392
  -3,564
  -3,745
  -3,934
  -4,133
  -4,341
  -4,560
New CAPEX, $m
  -1,887
  -1,699
  -1,777
  -1,855
  -1,938
  -2,024
  -2,116
  -2,212
  -2,314
  -2,421
  -2,534
  -2,653
  -2,779
  -2,911
  -3,049
  -3,196
  -3,349
  -3,511
  -3,681
  -3,860
  -4,048
  -4,246
  -4,454
  -4,673
  -4,902
  -5,144
  -5,397
  -5,664
  -5,944
  -6,238
  -6,547
Cash from investing activities, $m
  -1,832
  -2,730
  -2,867
  -3,008
  -3,156
  -3,310
  -3,473
  -3,643
  -3,823
  -4,011
  -4,209
  -4,417
  -4,636
  -4,865
  -5,105
  -5,359
  -5,624
  -5,904
  -6,197
  -6,505
  -6,829
  -7,169
  -7,526
  -7,901
  -8,294
  -8,708
  -9,142
  -9,598
  -10,077
  -10,579
  -11,107
Free cash flow, $m
  1,202
  229
  242
  259
  275
  292
  309
  326
  343
  360
  377
  394
  411
  429
  446
  464
  483
  501
  520
  540
  560
  580
  602
  623
  646
  669
  693
  718
  744
  771
  799
Issuance/(repayment) of debt, $m
  94
  1,283
  1,322
  1,380
  1,441
  1,506
  1,574
  1,646
  1,722
  1,801
  1,886
  1,974
  2,067
  2,165
  2,269
  2,377
  2,492
  2,612
  2,739
  2,872
  3,012
  3,159
  3,314
  3,476
  3,647
  3,827
  4,015
  4,214
  4,422
  4,641
  4,871
Issuance/(repurchase) of shares, $m
  -746
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -652
  1,283
  1,322
  1,380
  1,441
  1,506
  1,574
  1,646
  1,722
  1,801
  1,886
  1,974
  2,067
  2,165
  2,269
  2,377
  2,492
  2,612
  2,739
  2,872
  3,012
  3,159
  3,314
  3,476
  3,647
  3,827
  4,015
  4,214
  4,422
  4,641
  4,871
Total cash flow (excl. dividends), $m
  550
  1,512
  1,564
  1,639
  1,717
  1,798
  1,883
  1,972
  2,064
  2,161
  2,262
  2,368
  2,478
  2,594
  2,715
  2,842
  2,974
  3,114
  3,259
  3,412
  3,572
  3,739
  3,915
  4,100
  4,293
  4,496
  4,709
  4,932
  5,166
  5,412
  5,670
Retained Cash Flow (-), $m
  -221
  -731
  -734
  -766
  -800
  -836
  -874
  -914
  -956
  -1,000
  -1,047
  -1,096
  -1,148
  -1,202
  -1,260
  -1,320
  -1,384
  -1,450
  -1,521
  -1,595
  -1,672
  -1,754
  -1,840
  -1,930
  -2,025
  -2,125
  -2,229
  -2,340
  -2,455
  -2,577
  -2,704
Prev. year cash balance distribution, $m
 
  306
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,087
  830
  873
  917
  962
  1,009
  1,058
  1,108
  1,161
  1,215
  1,272
  1,331
  1,392
  1,455
  1,522
  1,591
  1,663
  1,739
  1,817
  1,900
  1,986
  2,076
  2,170
  2,268
  2,371
  2,479
  2,592
  2,711
  2,835
  2,965
Discount rate, %
 
  6.50
  6.83
  7.17
  7.52
  7.90
  8.30
  8.71
  9.15
  9.60
  10.08
  10.59
  11.12
  11.67
  12.26
  12.87
  13.51
  14.19
  14.90
  15.64
  16.43
  17.25
  18.11
  19.01
  19.96
  20.96
  22.01
  23.11
  24.27
  25.48
  26.75
PV of cash for distribution, $m
 
  1,021
  727
  709
  686
  658
  626
  590
  550
  509
  465
  420
  376
  331
  288
  248
  209
  174
  143
  115
  91
  70
  53
  40
  29
  20
  14
  9
  6
  4
  2
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Norfolk Southern Corporation is a holding company engaged in the rail transportation business. As of December 31, 2016, the Company operated approximately 19,500 miles of road primarily in the East and Midwest. The Company is engaged in the rail transportation of raw materials, intermediate products and finished goods primarily in the Southeast, East and Midwest. The Company, through interchange with rail carriers, to and from the rest of the United States. The Company also transports overseas freight through various Atlantic and Gulf Coast ports. It provides logistics services and offers the intermodal network in the eastern half of the United States. The Company's system reaches various manufacturing plants, electric generating facilities, mines, distribution centers and other businesses located in its service area. The Company's intermodal market group consists of shipments moving in trailers, domestic and international containers, and RoadRailer equipment.

FINANCIAL RATIOS  of  Norfolk Southern (NSC)

Valuation Ratios
P/E Ratio 24.2
Price to Sales 4.1
Price to Book 3.3
Price to Tangible Book
Price to Cash Flow 13.3
Price to Free Cash Flow 35.2
Growth Rates
Sales Growth Rate -5.9%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -20.9%
Cap. Spend. - 3 Yr. Gr. Rate -0.9%
Financial Strength
Quick Ratio 1
Current Ratio 0.1
LT Debt to Equity 77.1%
Total Debt to Equity 82.3%
Interest Coverage 0
Management Effectiveness
Return On Assets 4.8%
Ret/ On Assets - 3 Yr. Avg. 5.2%
Return On Total Capital 7.4%
Ret/ On T. Cap. - 3 Yr. Avg. 8%
Return On Equity 13.6%
Return On Equity - 3 Yr. Avg. 14.4%
Asset Turnover 0.3
Profitability Ratios
Gross Margin 44.6%
Gross Margin - 3 Yr. Avg. 42.2%
EBITDA Margin 36.5%
EBITDA Margin - 3 Yr. Avg. 35%
Operating Margin 31%
Oper. Margin - 3 Yr. Avg. 29.7%
Pre-Tax Margin 26.1%
Pre-Tax Margin - 3 Yr. Avg. 25.4%
Net Profit Margin 16.9%
Net Profit Margin - 3 Yr. Avg. 16.3%
Effective Tax Rate 35.4%
Eff/ Tax Rate - 3 Yr. Avg. 36%
Payout Ratio 41.7%

NSC stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NSC stock intrinsic value calculation we used $9888 million for the last fiscal year's total revenue generated by Norfolk Southern. The default revenue input number comes from 2016 income statement of Norfolk Southern. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NSC stock valuation model: a) initial revenue growth rate of 5.8% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 6.5%, whose default value for NSC is calculated based on our internal credit rating of Norfolk Southern, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Norfolk Southern.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NSC stock the variable cost ratio is equal to 72.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NSC stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Norfolk Southern.

Corporate tax rate of 27% is the nominal tax rate for Norfolk Southern. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NSC stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NSC are equal to 297%.

Life of production assets of 28.5 years is the average useful life of capital assets used in Norfolk Southern operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NSC is equal to -3.6%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $12409 million for Norfolk Southern - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 286.957 million for Norfolk Southern is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Norfolk Southern at the current share price and the inputted number of shares is $39.9 billion.

RELATED COMPANIES Price Int.Val. Rating
CSX CSX 54.96 15.72  str.sell
UNP Union Pacific 132.50 59.37  str.sell
KSU Kansas City So 107.99 9.83  str.sell
GWR Genesee&Wyomin 70.85 42.33  sell
CP Canadian Pacif 184.08 55.50  str.sell
CNI Canadian Natio 77.17 27.61  str.sell

COMPANY NEWS

▶ Train carrying automobiles derails; 2 crew members treated   [Feb-15-18 09:58PM  Associated Press]
▶ As CSX workforce shrinks, accidents pile up and morale plummets   [Feb-14-18 03:10PM  American City Business Journals]
▶ Top 4 Railroad Stocks for 2018   [12:36PM  Investopedia]
▶ Why Analysts Are Divided on Canadian National Railway   [Jan-26-18 10:33AM  Market Realist]
▶ How Kansas City Southern Is Valued among Peers after 4Q17   [Jan-25-18 09:02AM  Market Realist]
▶ Tax cuts boost Norfolk Southern's fourth-quarter profit   [Jan-24-18 02:35PM  Associated Press]
▶ Why Canadian Pacifics Revenue Soared in 4Q17   [12:40PM  Market Realist]
▶ Where Analysts Are Leaning on CSX Today   [10:33AM  Market Realist]
▶ Why CSXs 4Q17 Coal Revenues Fell   [10:40AM  Market Realist]
▶ CSXs 4Q17 Earnings Shine, Stock Still Slides   [09:06AM  Market Realist]
▶ How Norfolk Southerns Shipments Trended in Week 1   [Jan-16-18 03:35PM  Market Realist]
▶ How the Market Values CSX ahead of Its 4Q17 Earnings   [Jan-15-18 10:32AM  Market Realist]
▶ Winter storm Grayson has whacked $2B out of airline stocks   [Jan-05-18 11:09AM  Yahoo Finance Video]
▶ 5 Companies Reach 52-Week Highs   [Jan-02-18 02:39PM  GuruFocus.com]
▶ How Norfolk Southerns Railcar Traffic Trended in Week 50   [Dec-28-17 09:03AM  Market Realist]
▶ Coal Production Continues to Fall   [07:33AM  Market Realist]
▶ Analyzing Coal Productions Recent Fall   [07:32AM  Market Realist]
▶ CSX Dives Below Buy Point As CEO Harrison Takes Medical Leave   [Dec-15-17 04:14PM  Investor's Business Daily]
▶ CSX Dives Below Buy Point As CEO Harrison Takes Medical Leave   [11:16AM  Investor's Business Daily]
▶ Coal, Intermodal Lead Railroads' Resurgence   [Dec-07-17 02:39PM  Zacks]
▶ Transports charging higher   [Nov-30-17 04:40PM  CNBC Videos]
▶ Norfolk Southern Gets Relative Strength Rating Upgrade   [03:00AM  Investor's Business Daily]
▶ Comparing NSCs Carload Traffic in Week 46   [Nov-28-17 11:06AM  Market Realist]
▶ Five big movers in the blitz   [01:36PM  CNBC Videos]
▶ Why Norfolk Southerns Railcar Traffic Rose in Week 45   [Nov-21-17 04:25PM  Market Realist]
▶ What Pushed Freight Volumes for Norfolk Southern in Week 44?   [Nov-15-17 01:18PM  Market Realist]
Financial statements of NSC
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