Norfolk Southern
Financial ratios & Valuation

Forward Multiples (2025 – 2028)

2025202620272028
Price/Earnings ratio
20.5018.2815.2714.73
Price/Sales ratio
5.335.094.764.50
Earnings per Share (EPS)
$13.92$15.61$18.69$19.38

Historical Multiples (2014 – 2023)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 TTM Median
Valuation Ratios
Price/Earnings ratio
16.9516.4119.047.7115.0318.7730.1124.4617.6929.3520.6515.03
Price/Sales ratio
2.912.423.213.953.494.526.196.594.534.414.373.49
Price/Book Value ratio
2.732.092.552.552.603.364.095.384.544.193.862.60
Price/Cash Flow ratio
11.898.8710.4612.8210.7513.1316.6617.2713.7016.8714.1010.75
Price/Free Cash Flow ratio
46.2051.9027.6927.2622.5827.2928.2826.3925.4464.62-124.3527.29
Price/Earnings Growth ratio
3.04-0.801.840.03-0.314.91-1.270.451.22-0.69-2.624.91
Dividend Yield
2.02%2.79%2.18%1.68%2.10%1.85%1.58%1.39%2.01%2.28%2.29%2.10%
Profitability Indicator Ratios
Gross Profit Margin
38.84%36.72%39.16%41.01%40.26%41.86%41.27%44.82%43.32%44.27%38.35%41.86%
Operating Profit Margin
30.75%27.43%31.08%33.98%34.55%35.31%30.66%39.91%37.73%23.45%26.92%35.31%
Pretax Profit Margin
26.96%23.23%26.11%29.64%30.27%30.90%25.84%34.80%32.40%19.08%25.07%30.90%
Net Profit Margin
17.20%14.80%16.86%51.21%23.26%24.09%20.56%26.97%25.65%15.02%21.16%24.09%
Effective Tax Rate
36.18%36.28%35.39%-72.76%23.14%22.02%20.43%22.51%20.82%21.25%14.61%22.02%
Return on Assets
6.01%4.54%4.78%15.13%7.35%7.17%5.30%7.80%8.40%4.38%5.95%7.17%
Return On Equity
16.11%12.76%13.44%33.03%17.35%17.92%13.60%22.02%25.68%14.29%19.78%17.35%
Return on Capital Employed
11.36%9.00%9.44%10.81%11.76%11.19%8.38%12.36%13.27%7.30%8.27%11.19%
Liquidity Ratios
Current Ratio
1.561.180.970.840.710.901.07N/AN/AN/A0.730.71
Quick Ratio
1.421.050.860.750.630.790.970.770.661.140.650.63
Cash ratio
0.540.490.400.270.130.250.510.330.170.590.260.13
Days of Sales Outstanding
33.1232.8534.8833.0332.1429.7231.6131.9732.8734.4439.0432.14
Days of Inventory outstanding
12.1114.8715.5913.0111.0313.5614.0312.9412.7814.2214.0111.03
Operating Cycle
45.2447.7250.4746.0543.1843.2845.6544.9145.6648.6653.0543.18
Days of Payables Outstanding
58.0654.0568.8175.7675.0372.7561.9680.2065.3388.2578.5175.03
Cash Conversion Cycle
-12.82-6.33-18.33-29.71-31.85-29.46-16.31-35.29-19.67-39.59-25.46-31.85
Debt Ratios
Debt Ratio
0.270.290.290.270.300.320.330.350.390.410.390.30
Debt Equity Ratio
0.720.820.820.600.720.800.851.011.191.341.240.72
Long-term Debt to Capitalization
0.410.430.430.350.400.430.450.490.530.570.540.40
Total Debt to Capitalization
0.420.450.450.370.420.440.460.500.540.570.550.42
Interest Coverage Ratio
6.635.475.606.557.426.925.70N/AN/AN/A4.086.92
Cash Flow to Debt Ratio
0.310.280.290.330.330.310.280.300.270.180.210.31
Company Equity Multiplier
2.672.812.812.182.352.492.562.823.053.253.132.35
Cash Flow Ratios
Operating Cash Flow / Sales Ratio
0.240.270.300.300.320.340.370.380.330.260.310.34
Free Cash Flow / Operating Cash Flow Ratio
0.250.170.370.470.470.480.580.650.530.26-0.110.48
Cash Flow Coverage Ratio
0.310.280.290.330.330.310.280.300.270.180.210.31
Short Term Coverage Ratio
27.964.114.664.646.3612.316.287.696.00794.756.86.36
Dividend Payout Ratio
34.35%45.82%41.66%13.00%31.65%34.86%47.69%34.20%35.68%67.04%47.36%31.65%