NSC - Norfolk Southern Corporation
Price:
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CONSENSUS:
Hold
DETAILS
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PRICE TARGET:
$329.86
DETAILS
HIGH:
$360.00
LOW:
$297.00
MEDIAN:
$327.00
CONSENSUS:
$329.86
UPSIDE:
4.87%
AlphaVal
Deterministic, archetype-aware fair value
Stable Earnings Power
65% confidence
Primary model: P/Adj-EPS × Normalized Multiple
Adjust Assumptions
15.0x
12.75$
Key Value Driver
Normalized P/E multiple (15x base case)
Implied Market Multiple
24.7x
Plain-Language Summary
Our base-case estimate uses a valuation based on adjusted earnings per share and a normalized price-to-earnings multiple. We then blend that result with the average analyst price target of $329.86 from 48 analysts, using a 30% weight on analyst consensus. That produces an estimated intrinsic value of $232.83 per share.
Warnings
Dividend-based valuation: $111.04 (below our primary estimate by 42%). Large gaps may signal the dividend doesn't reflect full earning power.
Wall Street's average price target is $329.86 (from 48 analysts). Our estimate is 42% below the consensus -- consider that gap carefully.
Key Risks
- Growth DCF inappropriate — terminal value assumptions dominate
- EV/EBITDA misleading for regulated businesses where capex is mandated
- Regulatory risk is a fat tail not visible in normal multiples