Norfolk Southern Corporation (NSC) Financial Ratios
30 years of historical data (1996–2025) · Industrials · Railroads
EV/EBITDA
↓
15.36
+5% vs avg
5yr avg: 14.68
30Y Low6.1·High17.0
P/FCF
↑
31.24
↓-13% vs avg
5yr avg: 35.74
30Y Low8.3·High68.4
P/B Ratio
↓
4.34
-2% vs avg
5yr avg: 4.41
30Y Low0.9·High5.4
ROE
↓
19.2%
-3% vs avg
5yr avg: 19.8%
30Y Low3%·High38%
Debt/EBITDA
↑
3.16
↓-1% vs avg
5yr avg: 3.21
30Y Low1.2·High6.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
NSC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Norfolk Southern Corporation trades at 23.5x earnings, roughly in line with its 5-year average of 22.9x, sitting at the 83rd percentile of its historical range. Compared to the Industrials sector median P/E of 25.6x, the stock trades at a discount of 8%. On a free-cash-flow basis, the stock trades at 31.2x P/FCF, 13% below the 5-year average of 35.7x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $67.4B | $64.9B | $53.1B | $53.8B | $58.1B | $73.9B | $61.0B | $51.6B | $41.9B | $42.1B | $32.0B |
| Enterprise Value | $82.9B | $80.5B | $69.0B | $69.8B | $73.2B | $87.3B | $73.0B | $63.7B | $52.7B | $51.2B | $41.2B |
| P/E Ratio → | 23.54 | 22.64 | 20.29 | 29.47 | 17.75 | 24.58 | 30.31 | 18.94 | 15.72 | 7.79 | 19.23 |
| P/S Ratio | 5.53 | 5.33 | 4.38 | 4.42 | 4.56 | 6.63 | 6.23 | 4.56 | 3.66 | 3.99 | 3.24 |
| P/B Ratio | 4.34 | 4.17 | 3.71 | 4.21 | 4.56 | 5.41 | 4.12 | 3.40 | 2.73 | 2.57 | 2.58 |
| P/FCF | 31.24 | 30.09 | 31.80 | 64.76 | 25.53 | 26.52 | 28.45 | 27.53 | 23.61 | 27.49 | 27.89 |
| P/OCF | 15.45 | 14.88 | 13.11 | 16.91 | 13.75 | 17.36 | 16.76 | 13.25 | 11.25 | 12.93 | 10.54 |
P/E links to full P/E history page with 30-year chart
NSC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Norfolk Southern Corporation's enterprise value stands at 15.4x EBITDA, roughly in line with its 5-year average of 14.7x. The Industrials sector median is 13.9x, placing the stock at a 11% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.61 | 5.69 | 5.74 | 5.74 | 7.83 | 7.45 | 5.64 | 4.60 | 4.85 | 4.17 |
| EV / EBITDA | 15.36 | 14.90 | 13.48 | 16.99 | 12.29 | 15.74 | 16.03 | 12.66 | 10.41 | 11.19 | 9.98 |
| EV / EBIT | 20.70 | 18.05 | 16.68 | 22.93 | 15.18 | 19.29 | 23.13 | 15.56 | 13.09 | 13.92 | 13.09 |
| EV / FCF | — | 37.30 | 41.28 | 84.04 | 32.19 | 31.34 | 34.05 | 34.02 | 29.68 | 33.47 | 35.96 |
NSC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Norfolk Southern Corporation earns an operating margin of 32.9%, significantly above the Industrials sector average of 4.3%. Operating margins have expanded from 23.1% to 32.9% over the past 3 years, signaling improving operational efficiency. ROE of 19.2% indicates solid capital efficiency, compared to the sector median of 8.2%. ROIC of 9.8% represents adequate returns on invested capital versus a sector median of 6.1%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 42.4% | 42.4% | 31.0% | 23.1% | 37.1% | 39.2% | 34.7% | 34.5% | 34.6% | 33.4% | 31.0% |
| Operating Margin | 32.9% | 32.9% | 31.0% | 23.1% | 37.1% | 39.2% | 34.7% | 34.5% | 34.6% | 33.4% | 31.0% |
| Net Profit Margin | 23.6% | 23.6% | 21.6% | 15.0% | 25.7% | 27.0% | 20.6% | 24.1% | 23.3% | 51.2% | 16.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 19.2% | 19.2% | 19.4% | 14.3% | 24.8% | 21.1% | 13.4% | 17.8% | 16.8% | 37.6% | 13.6% |
| ROA | 6.5% | 6.5% | 6.1% | 4.5% | 8.5% | 7.9% | 5.3% | 7.3% | 7.4% | 15.3% | 4.8% |
| ROIC | 9.8% | 9.8% | 9.6% | 7.4% | 12.9% | 12.2% | 9.4% | 10.9% | 11.5% | 11.2% | 10.7% |
| ROCE | 9.8% | 9.8% | 9.5% | 7.5% | 13.1% | 12.2% | 9.5% | 11.2% | 11.9% | 10.7% | 9.5% |
NSC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Norfolk Southern Corporation carries a Debt/EBITDA ratio of 3.2x, which is moderately leveraged (roughly in line with the sector average of 3.2x). Net debt stands at $15.6B ($17.1B total debt minus $1.5B cash). Interest coverage of 5.6x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.10 | 1.10 | 1.22 | 1.37 | 1.22 | 1.04 | 0.89 | 0.84 | 0.73 | 0.60 | 0.82 |
| Debt / EBITDA | 3.16 | 3.16 | 3.42 | 4.28 | 2.62 | 2.57 | 2.88 | 2.53 | 2.20 | 2.15 | 2.47 |
| Net Debt / Equity | — | 1.00 | 1.11 | 1.25 | 1.19 | 0.98 | 0.81 | 0.80 | 0.70 | 0.56 | 0.75 |
| Net Debt / EBITDA | 2.88 | 2.88 | 3.09 | 3.90 | 2.54 | 2.42 | 2.64 | 2.42 | 2.13 | 2.00 | 2.24 |
| Debt / FCF | — | 7.21 | 9.48 | 19.28 | 6.66 | 4.82 | 5.60 | 6.49 | 6.08 | 5.98 | 8.07 |
| Interest Coverage | 5.63 | 5.63 | 5.13 | 4.21 | 6.97 | 7.00 | 5.05 | 6.78 | 7.23 | 6.69 | 5.54 |
NSC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
The current ratio of 0.85x is below 1.0, meaning current liabilities exceed current assets — though the company's $1.5B cash position helps mitigate short-term liquidity concerns. The current ratio has declined from 1.24x to 0.85x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 0.85 | 0.85 | 0.90 | 1.24 | 0.76 | 0.86 | 1.07 | 0.90 | 0.72 | 0.84 | 0.98 |
| Quick Ratio | 0.85 | 0.85 | 0.82 | 1.14 | 0.66 | 0.77 | 0.97 | 0.80 | 0.64 | 0.76 | 0.87 |
| Cash Ratio | 0.41 | 0.41 | 0.46 | 0.60 | 0.17 | 0.33 | 0.52 | 0.25 | 0.14 | 0.27 | 0.41 |
| Asset Turnover | — | 0.27 | 0.28 | 0.29 | 0.33 | 0.29 | 0.26 | 0.30 | 0.32 | 0.30 | 0.28 |
| Inventory Turnover | — | — | 30.18 | 35.41 | 31.67 | 31.09 | 28.92 | 30.34 | 36.23 | 31.66 | 26.53 |
| Days Sales Outstanding | — | 29.61 | 32.19 | 34.44 | 32.88 | 31.97 | 31.62 | 29.73 | 32.14 | 33.04 | 34.88 |
NSC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Norfolk Southern Corporation returns 2.6% to shareholders annually — split between a 1.8% dividend yield and 0.8% buyback yield. A payout ratio of 42.3% is moderate and appears sustainable, balancing shareholder returns with reinvestment capacity. The earnings yield of 4.2% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 1.9% | 2.3% | 2.3% | 2.0% | 1.4% | 1.6% | 1.8% | 2.0% | 1.7% | 2.2% |
| Payout Ratio | 42.3% | 42.3% | 46.6% | 67.0% | 35.7% | 34.2% | 47.7% | 34.9% | 31.7% | 13.0% | 41.7% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.2% | 4.4% | 4.9% | 3.4% | 5.6% | 4.1% | 3.3% | 5.3% | 6.4% | 12.8% | 5.2% |
| FCF Yield | 3.2% | 3.3% | 3.1% | 1.5% | 3.9% | 3.8% | 3.5% | 3.6% | 4.2% | 3.6% | 3.6% |
| Buyback Yield | 0.8% | 0.8% | 0.0% | 1.2% | 5.4% | 4.6% | 2.4% | 4.1% | 6.6% | 2.4% | 2.5% |
| Total Shareholder Yield | 2.6% | 2.7% | 2.3% | 3.4% | 7.4% | 6.0% | 3.9% | 5.9% | 8.7% | 4.1% | 4.7% |
| Shares Outstanding | — | $225M | $226M | $227M | $236M | $248M | $257M | $266M | $280M | $290M | $296M |
Peer Comparison
Compare NSC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 NSCYou | $67B | 23.5 | 15.4 | 31.2 | 42.4% | 32.9% | 19.2% | 9.8% | 3.2 |
 CSX | $85B | 29.6 | 17.8 | 49.6 | 33.2% | 32.1% | 22.5% | 10.9% | 3.3 |
 UNP | $153B | 21.5 | 14.9 | 27.7 | 59.4% | 40.1% | 40.4% | 15.2% | 2.6 |
 CP | $77B | 27.0 | 17.4 | 50.5 | 52.2% | 37.2% | 8.7% | 6.0% | 3.0 |
 WAB | $46B | 40.1 | 21.6 | 31.0 | 31.5% | 16.7% | 11.0% | 9.6% | 2.3 |
 RAIL | $296M | 8.6 | 9.6 | 9.4 | 14.6% | 6.8% | — | — | 3.8 |
 TRN | $3B | 11.3 | 12.0 | — | 26.6% | 16.6% | 20.6% | 4.1% | 8.2 |
 UPS | $89B | 16.0 | 9.5 | 18.7 | 18.5% | 9.6% | 33.8% | 16.1% | 2.6 |
 FDX | $78B | 19.4 | 10.6 | 26.1 | 21.6% | 6.9% | 14.7% | 7.7% | 3.6 |
 CAT | $459B | 52.4 | 36.5 | 44.6 | 32.3% | 16.6% | 43.5% | 15.9% | 3.2 |
 GE | $374B | 43.8 | 38.2 | 51.4 | 36.8% | 19.1% | 45.3% | 24.7% | 2.1 |
| Industrials Median | — | 25.6 | 13.9 | 20.0 | 32.0% | 4.3% | 8.2% | 6.1% | 3.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
Consensus-Based Analysis Tools
Full Stock Analysis
Deep dive into NSC consensus models and risk factors.
View Analysis
Intrinsic Valuation
DCF models, multiple analysis, and analyst estimates.
Check Valuation
Historical Returns
10-year return with dividends reinvested.
Calculate
DCA Calculator
See how regular investing compounds over time.
Run Numbers
Peer Comparison
Compare growth, multiples, and margins vs sector.
Compare
NSC — Frequently Asked Questions
Quick answers to the most common questions about buying NSC stock.
What is Norfolk Southern Corporation's P/E ratio?
Norfolk Southern Corporation's current P/E ratio is 23.5x. The historical average is 18.2x. This places it at the 83th percentile of its historical range.
What is Norfolk Southern Corporation's EV/EBITDA?
Norfolk Southern Corporation's current EV/EBITDA is 15.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.6x.
What is Norfolk Southern Corporation's ROE?
Norfolk Southern Corporation's return on equity (ROE) is 19.2%. The historical average is 15.1%.
Is NSC stock overvalued?
Based on historical data, Norfolk Southern Corporation is trading at a P/E of 23.5x. This is at the 83th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Norfolk Southern Corporation's dividend yield?
Norfolk Southern Corporation's current dividend yield is 1.80% with a payout ratio of 42.3%.
What are Norfolk Southern Corporation's profit margins?
Norfolk Southern Corporation has 42.4% gross margin and 32.9% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Norfolk Southern Corporation have?
Norfolk Southern Corporation's Debt/EBITDA ratio is 3.2x, indicating high leverage. A ratio between 2-4x is manageable but warrants monitoring.