Price to Earnings (P/E)
since 2005
Calculation
Norfolk Southern Corp., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 4, 2022 | 21.58 | = | 270.42 | ÷ | 12.53 | 12.53 | = | 3,005 | ÷ | 239,777,444 | |
| Feb 4, 2021 | 30.73 | = | 245.57 | ÷ | 7.99 | 7.99 | = | 2,013 | ÷ | 251,911,634 | |
| Feb 6, 2020 | 20.15 | = | 212.68 | ÷ | 10.56 | 10.56 | = | 2,722 | ÷ | 257,844,180 | |
| Feb 8, 2019 | 17.20 | = | 171.46 | ÷ | 9.97 | 9.97 | = | 2,666 | ÷ | 267,455,326 | |
| Feb 5, 2018 | 7.28 | = | 138.61 | ÷ | 19.03 | 19.03 | = | 5,404 | ÷ | 283,997,242 | |
| Feb 6, 2017 | 20.88 | = | 119.87 | ÷ | 5.74 | 5.74 | = | 1,668 | ÷ | 290,553,713 | |
| Feb 8, 2016 | 13.51 | = | 70.49 | ÷ | 5.22 | 5.22 | = | 1,556 | ÷ | 298,198,651 | |
| Feb 11, 2015 | 16.77 | = | 109.11 | ÷ | 6.51 | 6.51 | = | 2,000 | ÷ | 307,411,965 | |
| Feb 14, 2014 | 15.05 | = | 92.84 | ÷ | 6.17 | 6.17 | = | 1,910 | ÷ | 309,715,149 | |
| Feb 15, 2013 | 12.86 | = | 71.50 | ÷ | 5.56 | 5.56 | = | 1,749 | ÷ | 314,516,374 | |
| Feb 15, 2012 | 11.69 | = | 67.84 | ÷ | 5.80 | 5.80 | = | 1,916 | ÷ | 330,141,306 | |
| Feb 17, 2011 | 15.52 | = | 65.20 | ÷ | 4.20 | 4.20 | = | 1,496 | ÷ | 356,109,351 | |
| Feb 17, 2010 | 17.61 | = | 49.26 | ÷ | 2.80 | 2.80 | = | 1,034 | ÷ | 369,655,129 | |
| Feb 18, 2009 | 7.59 | = | 35.56 | ÷ | 4.68 | 4.68 | = | 1,716 | ÷ | 366,460,780 | |
| Feb 15, 2008 | 13.87 | = | 53.94 | ÷ | 3.89 | 3.89 | = | 1,464 | ÷ | 376,332,668 | |
| Feb 22, 2007 | 13.72 | = | 51.19 | ÷ | 3.73 | 3.73 | = | 1,481 | ÷ | 396,986,263 | |
| Feb 23, 2006 | 16.19 | = | 50.30 | ÷ | 3.11 | 3.11 | = | 1,281 | ÷ | 412,236,777 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Norfolk Southern Corp. Annual Report.
- Share Price Trend
- The share price demonstrates an overall upward trajectory over the analyzed period, starting at $50.30 in February 2006 and reaching $270.42 by February 2022. There are notable fluctuations, with a significant dip observed in February 2009 when the price fell to $35.56, likely reflecting broader market or company-specific challenges. Following this dip, the share price recovered steadily, peaking at $171.46 in February 2019, with a brief decline to $70.49 in February 2016, and surging again to the latest recorded high in 2022.
- Earnings per Share (EPS) Trend
- The EPS values exhibit variability, with a general upward trend punctuated by periods of volatility. Starting at $3.11 in 2006, EPS reached a peak of $19.03 in 2018, which indicates a substantial improvement in profitability during this period. However, post-2018, the EPS decreased to $7.99 by 2021 before rising again to $12.53 in 2022. The sharp increase in 2018 stands out as an exceptional performance year, potentially driven by non-recurring gains or operational improvements.
- Price-to-Earnings (P/E) Ratio Trend
- The P/E ratio fluctuates over the period with no clear linear trend, reflecting changing market valuations relative to earnings. The ratio was relatively low at 7.59 in 2009, coinciding with the lowest share price in the dataset, indicating possibly undervaluation or higher perceived risk. Following that, the P/E ratio generally rises, reaching a high of 30.73 in 2021, which may suggest investor optimism or expectations of future earnings growth despite the decline in EPS in the same period. The P/E in 2018 was notably low at 7.28 despite high EPS, suggesting the market did not fully value the earnings peak or considered it unsustainable.
- Interrelation of Metrics
- The inverse relationship observed in certain periods between EPS and P/E ratios, especially around 2018 and 2021, indicates shifts in investor sentiment and market expectations independent of actual earnings performance. The share price growth over the long term aligns broadly with EPS trends, but price fluctuations and corresponding P/E adjustments reflect market dynamics and risks impacting valuation beyond fundamental earnings.
Comparison to Competitors
Norfolk Southern Corp., P/E, long-term trends, comparison to competitors
| Norfolk Southern Corp. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Feb 4, 2022 | 21.58 | 15.07 | — | 23.67 | — | 14.11 |
| Feb 4, 2021 | 30.73 | 33.43 | — | 25.57 | — | 104.33 |
| Feb 6, 2020 | 20.15 | 82.00 | — | 21.44 | 5.82 | 20.59 |
| Feb 8, 2019 | 17.20 | 13.39 | — | 19.60 | 11.00 | 20.07 |
| Feb 5, 2018 | 7.28 | 19.29 | — | 9.26 | 8.91 | 18.37 |
| Feb 6, 2017 | 20.88 | 23.45 | — | 20.86 | 10.37 | 27.32 |
| Feb 8, 2016 | 13.51 | 46.06 | — | 13.31 | 2.54 | 17.84 |
| Feb 11, 2015 | 16.77 | 20.56 | — | 20.72 | 23.08 | 30.28 |
| Feb 14, 2014 | 15.05 | 21.03 | — | 18.35 | 29.73 | 20.22 |
| Feb 15, 2013 | 12.86 | 14.32 | — | 15.85 | — | 97.65 |
| Feb 15, 2012 | 11.69 | 20.54 | — | 16.93 | 8.28 | 19.35 |
| Feb 17, 2011 | 15.52 | 20.51 | — | 16.65 | 31.74 | 20.89 |
| Feb 17, 2010 | 17.61 | 182.81 | — | 16.53 | — | 27.10 |
| Feb 18, 2009 | 7.59 | 21.29 | — | 10.61 | — | 13.65 |
| Feb 15, 2008 | 13.87 | 17.96 | — | 17.75 | 8.95 | 190.19 |
| Feb 22, 2007 | 13.72 | 18.49 | — | 17.51 | 0.19 | 17.80 |
| Feb 23, 2006 | 16.19 | 17.42 | — | 23.08 | — | 22.04 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Transportation)
Norfolk Southern Corp., P/E, long-term trends, comparison to sector (transportation)
| Norfolk Southern Corp. | Transportation | |
|---|---|---|
| Feb 4, 2022 | 21.58 | 22.48 |
| Feb 4, 2021 | 30.73 | — |
| Feb 6, 2020 | 20.15 | 62.33 |
| Feb 8, 2019 | 17.20 | 17.05 |
| Feb 5, 2018 | 7.28 | 12.83 |
| Feb 6, 2017 | 20.88 | 21.13 |
| Feb 8, 2016 | 13.51 | 12.05 |
| Feb 11, 2015 | 16.77 | 23.46 |
| Feb 14, 2014 | 15.05 | 20.08 |
| Feb 15, 2013 | 12.86 | 29.57 |
| Feb 15, 2012 | 11.69 | 17.70 |
| Feb 17, 2011 | 15.52 | 19.66 |
| Feb 17, 2010 | 17.61 | 31.59 |
| Feb 18, 2009 | 7.59 | 80.82 |
| Feb 15, 2008 | 13.87 | 31.23 |
| Feb 22, 2007 | 13.72 | 4.61 |
| Feb 23, 2006 | 16.19 | — |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Industrials)
Norfolk Southern Corp., P/E, long-term trends, comparison to industry (industrials)
| Norfolk Southern Corp. | Industrials | |
|---|---|---|
| Feb 4, 2022 | 21.58 | 35.59 |
| Feb 4, 2021 | 30.73 | — |
| Feb 6, 2020 | 20.15 | 43.95 |
| Feb 8, 2019 | 17.20 | 33.70 |
| Feb 5, 2018 | 7.28 | 29.83 |
| Feb 6, 2017 | 20.88 | 22.92 |
| Feb 8, 2016 | 13.51 | 22.89 |
| Feb 11, 2015 | 16.77 | 18.79 |
| Feb 14, 2014 | 15.05 | 19.13 |
| Feb 15, 2013 | 12.86 | 17.77 |
| Feb 15, 2012 | 11.69 | 15.75 |
| Feb 17, 2011 | 15.52 | 18.72 |
| Feb 17, 2010 | 17.61 | 19.17 |
| Feb 18, 2009 | 7.59 | 9.73 |
| Feb 15, 2008 | 13.87 | 16.93 |
| Feb 22, 2007 | 13.72 | 11.65 |
| Feb 23, 2006 | 16.19 | 50.62 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).