Price to Sales (P/S)
since 2005
Calculation
Norfolk Southern Corp., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Railway operating revenues1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 4, 2022 | 5.82 | = | 270.42 | ÷ | 46.47 | 46.47 | = | 11,142 | ÷ | 239,777,444 | |
| Feb 4, 2021 | 6.32 | = | 245.57 | ÷ | 38.86 | 38.86 | = | 9,789 | ÷ | 251,911,634 | |
| Feb 6, 2020 | 4.85 | = | 212.68 | ÷ | 43.81 | 43.81 | = | 11,296 | ÷ | 257,844,180 | |
| Feb 8, 2019 | 4.00 | = | 171.46 | ÷ | 42.84 | 42.84 | = | 11,458 | ÷ | 267,455,326 | |
| Feb 5, 2018 | 3.73 | = | 138.61 | ÷ | 37.15 | 37.15 | = | 10,551 | ÷ | 283,997,242 | |
| Feb 6, 2017 | 3.52 | = | 119.87 | ÷ | 34.03 | 34.03 | = | 9,888 | ÷ | 290,553,713 | |
| Feb 8, 2016 | 2.00 | = | 70.49 | ÷ | 35.25 | 35.25 | = | 10,511 | ÷ | 298,198,651 | |
| Feb 11, 2015 | 2.89 | = | 109.11 | ÷ | 37.81 | 37.81 | = | 11,624 | ÷ | 307,411,965 | |
| Feb 14, 2014 | 2.56 | = | 92.84 | ÷ | 36.31 | 36.31 | = | 11,245 | ÷ | 309,715,149 | |
| Feb 15, 2013 | 2.04 | = | 71.50 | ÷ | 35.10 | 35.10 | = | 11,040 | ÷ | 314,516,374 | |
| Feb 15, 2012 | 2.00 | = | 67.84 | ÷ | 33.84 | 33.84 | = | 11,172 | ÷ | 330,141,306 | |
| Feb 17, 2011 | 2.44 | = | 65.20 | ÷ | 26.72 | 26.72 | = | 9,516 | ÷ | 356,109,351 | |
| Feb 17, 2010 | 2.29 | = | 49.26 | ÷ | 21.56 | 21.56 | = | 7,969 | ÷ | 369,655,129 | |
| Feb 18, 2009 | 1.22 | = | 35.56 | ÷ | 29.09 | 29.09 | = | 10,661 | ÷ | 366,460,780 | |
| Feb 15, 2008 | 2.15 | = | 53.94 | ÷ | 25.06 | 25.06 | = | 9,432 | ÷ | 376,332,668 | |
| Feb 22, 2007 | 2.16 | = | 51.19 | ÷ | 23.70 | 23.70 | = | 9,407 | ÷ | 396,986,263 | |
| Feb 23, 2006 | 2.43 | = | 50.30 | ÷ | 20.68 | 20.68 | = | 8,527 | ÷ | 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 Price to Sales (P/S) ratio demonstrates a long-term expansion in market valuation relative to revenue from 2006 to 2022. While the ratio remained constrained within a narrow band for the first decade of the period, a significant shift occurred after 2016, resulting in a substantially higher valuation multiple by 2022.
- Initial Volatility and Contraction (2006–2012)
- Between 2006 and 2008, the P/S ratio remained relatively stable, fluctuating between 2.15 and 2.43. A sharp contraction occurred in February 2009, with the ratio dropping to 1.22. This decline was driven by a significant reduction in share price to $35.56, occurring despite a contemporaneous increase in sales per share to $29.09. A recovery followed, with the ratio returning to 2.44 by 2011.
- Period of Moderate Adjustment (2013–2016)
- The valuation multiple experienced a phase of moderate instability between 2013 and 2016, moving from 2.04 to a peak of 2.89 in 2015 before retreating to 2.00 in 2016. During this interval, sales per share showed a general upward trend, rising from $35.10 to $37.81, indicating that the fluctuations in the P/S ratio were primarily driven by changes in equity pricing rather than revenue volatility.
- Rapid Valuation Expansion (2017–2022)
- A marked acceleration in the P/S ratio is observed starting in 2017, as the multiple climbed from 3.52 to a peak of 6.32 in February 2021. This period is characterized by aggressive share price appreciation, with the price increasing from $119.87 in 2017 to $245.57 in 2021. Although sales per share reached a period high of $46.47 in 2022, the P/S ratio saw a slight correction to 5.82, suggesting a moderate cooling of the valuation multiple from its 2021 peak.
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Comparison to Competitors
Norfolk Southern Corp., P/S, 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 | 5.82 | 0.94 | 3.90 | 7.08 | 0.63 | 1.87 |
| Feb 4, 2021 | 6.32 | 0.62 | 9.07 | 7.00 | 1.11 | 1.66 |
| Feb 6, 2020 | 4.85 | 0.64 | 4.00 | 5.85 | 0.40 | 1.23 |
| Feb 8, 2019 | 4.00 | 0.94 | — | 5.12 | 0.57 | 1.34 |
| Feb 5, 2018 | 3.73 | 0.96 | — | 4.67 | 0.50 | 1.37 |
| Feb 6, 2017 | 3.52 | 0.85 | — | 4.43 | 0.64 | 1.54 |
| Feb 8, 2016 | 2.00 | 1.02 | — | 2.91 | 0.49 | 1.48 |
| Feb 11, 2015 | 2.89 | 0.95 | — | 4.48 | 0.67 | 1.58 |
| Feb 14, 2014 | 2.56 | 0.74 | — | 3.67 | 0.44 | 1.59 |
| Feb 15, 2013 | 2.04 | 0.68 | — | 2.99 | 0.24 | 1.46 |
| Feb 15, 2012 | 2.00 | 0.76 | — | 2.85 | 0.19 | 1.39 |
| Feb 17, 2011 | 2.44 | 0.70 | — | 2.73 | 0.35 | 1.47 |
| Feb 17, 2010 | 2.29 | 0.50 | — | 2.22 | 0.18 | 1.29 |
| Feb 18, 2009 | 1.22 | 0.63 | — | 1.38 | 0.03 | 0.80 |
| Feb 15, 2008 | 2.15 | 1.03 | — | 2.02 | 0.18 | 1.46 |
| Feb 22, 2007 | 2.16 | 1.03 | — | 1.81 | 0.22 | 1.57 |
| Feb 23, 2006 | 2.43 | 0.86 | — | 1.74 | 0.22 | 2.00 |
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/S, long-term trends, comparison to sector (transportation)
| Norfolk Southern Corp. | Transportation | |
|---|---|---|
| Feb 4, 2022 | 5.82 | 2.03 |
| Feb 4, 2021 | 6.32 | 2.19 |
| Feb 6, 2020 | 4.85 | 1.51 |
| Feb 8, 2019 | 4.00 | 1.48 |
| Feb 5, 2018 | 3.73 | 1.44 |
| Feb 6, 2017 | 3.52 | 1.48 |
| Feb 8, 2016 | 2.00 | 1.31 |
| Feb 11, 2015 | 2.89 | 1.61 |
| Feb 14, 2014 | 2.56 | 1.37 |
| Feb 15, 2013 | 2.04 | 1.16 |
| Feb 15, 2012 | 2.00 | 1.11 |
| Feb 17, 2011 | 2.44 | 1.22 |
| Feb 17, 2010 | 2.29 | 0.99 |
| Feb 18, 2009 | 1.22 | 0.71 |
| Feb 15, 2008 | 2.15 | 1.20 |
| Feb 22, 2007 | 2.16 | 1.23 |
| Feb 23, 2006 | 2.43 | 1.34 |
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/S, long-term trends, comparison to industry (industrials)
| Norfolk Southern Corp. | Industrials | |
|---|---|---|
| Feb 4, 2022 | 5.82 | 2.07 |
| Feb 4, 2021 | 6.32 | 2.14 |
| Feb 6, 2020 | 4.85 | 1.77 |
| Feb 8, 2019 | 4.00 | 1.58 |
| Feb 5, 2018 | 3.73 | 1.71 |
| Feb 6, 2017 | 3.52 | 1.68 |
| Feb 8, 2016 | 2.00 | 1.48 |
| Feb 11, 2015 | 2.89 | 1.65 |
| Feb 14, 2014 | 2.56 | 1.57 |
| Feb 15, 2013 | 2.04 | 1.31 |
| Feb 15, 2012 | 2.00 | 1.27 |
| Feb 17, 2011 | 2.44 | 1.39 |
| Feb 17, 2010 | 2.29 | 1.09 |
| Feb 18, 2009 | 1.22 | 0.71 |
| Feb 15, 2008 | 2.15 | 1.62 |
| Feb 22, 2007 | 2.16 | 1.73 |
| Feb 23, 2006 | 2.43 | 1.80 |
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).