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Norfolk Southern Corp
NYSE:NSC

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Norfolk Southern Corp Logo
Norfolk Southern Corp
NYSE:NSC
Watchlist
Price: 239.94 USD -0.37% Market Closed
Updated: Apr 28, 2024

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Apr 28, 2024.

Estimated DCF Value of one NSC stock is 185.37 USD. Compared to the current market price of 239.94 USD, the stock is Overvalued by 23%.

NSC DCF Value
Base Case
185.37 USD
Overvaluation 23%
DCF Value
Price
Worst Case
Base Case
Best Case
185.37
DCF Value
Worst Case
Base Case
Best Case
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DCF Value: 185.37 USD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 15.6B USD. The present value of the terminal value is 38.1B USD. The total present value equals 53.7B USD.
Forecast Period
Years
Discount Rate
%
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Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 53.7B USD
+ Cash & Equivalents 1.6B USD
+ Investments 3.8B USD
Firm Value 59.1B USD
- Debt 17.2B USD
Equity Value 41.9B USD
/ Shares Outstanding 226.3m
NSC DCF Value 185.37 USD
Overvalued by 23%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
12.7B 15B
Operating Income
4.2B 5.5B
FCFF
3.3B 4.2B

See Also

Discover More

What is the DCF value of one NSC stock?

Estimated DCF Value of one NSC stock is 185.37 USD. Compared to the current market price of 239.94 USD, the stock is Overvalued by 23%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Norfolk Southern Corp's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 53.7B USD.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 185.37 USD per share.

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