NSC
Norfolk Southern CorporationIndustrials / RailroadsINTACTNorfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. 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.
Price vs. Intrinsic Value Corridor
Overvalued vs DCF ($122.35)Historical market price overlaid against conservative DCF Fair Value & Benjamin Graham Margin of Safety bands.
2-Stage Discounted Cash Flow (DCF) Workbench
Conservative intrinsic value model based on owner cash generation over a 10-year investment horizon. Opens with LocalAlpha's baseline assumptions (matching the fair value shown above) — adjust any input to stress-test.
| Year | Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Projected FCF ($M) | $1,627 | $1,915 | $2,253 | $2,652 | $3,122 | $3,262 | $3,409 | $3,562 | $3,723 | $3,890 |
| Present Value (PV) | $1,492 | $1,611 | $1,740 | $1,879 | $2,029 | $1,945 | $1,865 | $1,788 | $1,714 | $1,643 |
Benjamin Graham & Buffett Value Models
Classical deep value metrics based on asset backing, normalized earnings power, and owner cash yield.
Calculated as √(22.5 × EPS × BVPS). The maximum theoretical price a defensive investor should pay based purely on asset book value and current earnings.
Formula: V = (EPS × (8.5 + 2g) × 4.4) / Y where g is the conservative 7-10 yr growth rate and Y is AAA Bond Yield.
True distributable cash flow: Net Income + D&A - Maintenance CapEx. Reflects the cash Buffett would extract without hurting unit volume.
Reverse DCF: Market Growth Expectation
HIGH BARRIERAt the current price of $321.08, the market is assuming the business will compound Free Cash Flow at 18.4% per year for the next decade with a 9% hurdle rate.
Surveil NSC with Mathematical Margin of Safety Rules
Set non-negotiable floor rules for Norfolk Southern Corporation. If a newly filed quarterly 10-Q breaks your ROIC floor, operating margin boundary, or balance sheet leverage rules, receive an autonomous breach audit within 15 minutes.
ROIC > 15% • Margin > 15% • D/E < 0.5x
Current Margin 35.3% • Floor > 10%
Altman-Z > 2.6 • Current Ratio > 1.5x
Frequently Asked Questions: Norfolk Southern Corporation (NSC) Intrinsic Valuation
Audited fundamentals, DCF intrinsic value sensitivity, and thesis break detection parameters for Norfolk Southern Corporation.
Related Industrials Value Stocks & Sector Peers
Compare Norfolk Southern Corporation with audited intrinsic valuation models across the Industrials sector.
GE Aerospace
Aerospace & Defense
Caterpillar Inc.
Farm & Heavy Construction Machinery
Union Pacific Corporation
Railroads
RTX Corporation
Aerospace & Defense
Honeywell International Inc.
Conglomerates
The Boeing Company
Aerospace & Defense