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.
The financial trajectory from 2006 to 2022 is characterized by a significant long-term appreciation in share price, rising from 50.30 USD to 270.42 USD. While earnings per share (EPS) generally trended upward, the growth was marked by notable volatility, particularly between 2017 and 2019. The price-to-earnings (P/E) ratio exhibits distinct cycles of compression and expansion, reflecting shifting market valuations relative to actual earnings performance.
- P/E Ratio Volatility and Valuation Shifts
- The P/E ratio remained relatively stable between 11.69 and 17.61 for much of the period from 2006 to 2015. However, two significant contractions occurred: first in 2009, where the ratio dropped to 7.59, and more acutely in 2018, when it reached a series low of 7.28. The 2018 contraction was driven by a substantial spike in EPS to 19.03 USD, which outpaced the increase in share price. Conversely, a period of aggressive valuation expansion began in 2019, culminating in a peak P/E of 30.73 in 2021, indicating a significant increase in the multiple the market was willing to pay per dollar of earnings.
- Earnings Per Share (EPS) Dynamics
- Earnings demonstrated a general upward trend but were subject to periodic instability. A notable dip occurred in 2010 (2.80 USD), followed by a period of steady growth reaching 6.51 USD by 2015. The most prominent anomaly is observed in 2018, where EPS surged to 19.03 USD before correcting to 9.97 USD in 2019. Despite this volatility, the 2022 EPS of 12.53 USD represents a substantial increase over the 2006 baseline of 3.11 USD.
- Share Price Correlation
- The share price exhibited a strong positive correlation with long-term earnings growth, though it proved more sensitive to market sentiment in later years. Between 2019 and 2021, the share price rose from 171.46 USD to 245.57 USD while the P/E ratio simultaneously expanded, suggesting that the price increase during this window was driven as much by multiple expansion as by fundamental earnings growth. A correction is observed in 2022, where the P/E ratio moderated to 21.58 despite the share price reaching its period high of 270.42 USD, aided by an increase in EPS to 12.53 USD.
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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).