Norfolk Southern Corporation logo NSC - Norfolk Southern Corporation

Price: -- -- | CONSENSUS: Hold DETAILS
STRONG
BUY
0
BUY 21
HOLD 24
SELL 3
STRONG
SELL
0
| PRICE TARGET: $329.86 DETAILS
HIGH: $360.00
LOW: $297.00
MEDIAN: $327.00
CONSENSUS: $329.86
UPSIDE: 4.87%
AlphaVal

AlphaVal

Deterministic, archetype-aware fair value

Stable Earnings Power 65% confidence

Primary model: P/Adj-EPS × Normalized Multiple

Valuation Signal Overvalued Moderate
Trading 35.1% above fair value
Current Price $314.53
Bear Case $186.27 40.8% downside ($186.27 - $314.53) / $314.53 = -40.8% $12.75 × 12x P/E
Fair Value $232.83 26.0% downside ($232.83 - $314.53) / $314.53 = -26.0% $12.75 × 15x P/E
Bull Case $279.40 11.2% downside ($279.40 - $314.53) / $314.53 = -11.2% $12.75 × 18x P/E

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