Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Norfolk Southern Corp., current price multiples
| Norfolk Southern Corp. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | Transportation | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | $262.53 | ||||||||||
| No. shares of common stock outstanding | 238,332,514 | ||||||||||
| Growth rate (g) | 14.33% | ||||||||||
| Earnings per share (EPS) | $12.61 | ||||||||||
| Next year expected EPS | $14.42 | ||||||||||
| Operating profit per share | $18.66 | ||||||||||
| Sales per share | $46.75 | ||||||||||
| Book value per share (BVPS) | $57.24 | ||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to earnings (P/E) | 20.82 | 16.25 | 13.26 | 24.79 | 10.02 | 16.13 | 22.80 | 53.66 | |||
| Price to next year expected earnings | 18.21 | 14.62 | 12.23 | 19.96 | 9.04 | 14.07 | 18.85 | 50.21 | |||
| Price-earnings-growth (PEG) | 1.45 | 1.45 | 1.57 | 1.02 | 0.93 | 1.10 | 1.09 | 7.81 | |||
| Price to operating profit (P/OP) | 14.07 | 13.19 | 23.96 | 17.97 | 7.13 | 11.42 | 21.85 | 33.74 | |||
| Price to sales (P/S) | 5.62 | 0.76 | 2.56 | 7.22 | 0.57 | 1.01 | 2.06 | 3.12 | |||
| Price to book value (P/BV) | 4.59 | 2.28 | 4.93 | 9.58 | 2.20 | 5.54 | 7.02 | 8.20 | |||
Based on: 10-K (reporting date: 2021-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Norfolk Southern Corp., historical price multiples
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).
An analysis of valuation multiples from 2017 to 2021 reveals a general trend of multiple expansion across most metrics, with a notable peak occurring in 2020 followed by a partial correction in 2021.
- Price to Earnings (P/E) Ratio
- The P/E ratio experienced significant volatility and growth, rising from 7.28 in 2017 to a peak of 30.73 in 2020. A subsequent decline to 21.58 in 2021 indicates a normalization of the earnings multiple after a period of sharp expansion.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio followed a trajectory similar to the P/E ratio, increasing steadily from 10.98 in 2017 to 20.61 in 2020. The ratio then reverted to 14.58 in 2021, reflecting a correlation between the market's valuation of net earnings and operating profitability.
- Price to Sales (P/S) Ratio
- A consistent upward trend is observed in the P/S ratio from 2017 to 2020, moving from 3.73 to 6.32. A slight moderation occurred in 2021, with the ratio settling at 5.82, suggesting a sustained increase in the value attributed to each dollar of revenue compared to the 2017 baseline.
- Price to Book Value (P/BV) Ratio
- Unlike the earnings and sales multiples, the P/BV ratio demonstrated a linear and uninterrupted increase throughout the entire period. The ratio rose from 2.41 in 2017 to 4.75 in 2021, indicating a growing premium over the company's accounting book value.
The divergence between the P/BV ratio and the other multiples in 2021 suggests that while the market's valuation of current earnings and sales moderated, the perceived value of the company's asset base continued to strengthen. The synchronization of the peaks in P/E, P/OP, and P/S ratios in 2020 highlights a period of maximum valuation expansion relative to fundamental performance metrics.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Price to Earnings (P/E)
Norfolk Southern Corp., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 239,777,444 | 251,911,634 | 257,844,180 | 267,455,326 | 283,997,242 | |
| Selected Financial Data (US$) | ||||||
| Net income (in millions) | 3,005) | 2,013) | 2,722) | 2,666) | 5,404) | |
| Earnings per share (EPS)2 | 12.53 | 7.99 | 10.56 | 9.97 | 19.03 | |
| Share price1, 3 | 270.42 | 245.57 | 212.68 | 171.46 | 138.61 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 21.58 | 30.73 | 20.15 | 17.20 | 7.28 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| FedEx Corp. | 15.07 | — | — | — | — | |
| Uber Technologies Inc. | — | — | — | — | — | |
| Union Pacific Corp. | 23.67 | — | — | — | — | |
| United Airlines Holdings Inc. | — | — | — | — | — | |
| United Parcel Service Inc. | 14.11 | — | — | — | — | |
| P/E Ratio, Sector | ||||||
| Transportation | 22.48 | — | — | — | — | |
| P/E Ratio, Industry | ||||||
| Industrials | 35.59 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 3,005,000,000 ÷ 239,777,444 = 12.53
3 Closing price as at the filing date of Norfolk Southern Corp. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 270.42 ÷ 12.53 = 21.58
5 Click competitor name to see calculations.
The five-year period ending December 31, 2021, is characterized by a consistent appreciation in share price contrasted with significant volatility in earnings per share, resulting in a substantial expansion and subsequent correction of the price-to-earnings (P/E) multiple.
- Share Price Trend
- A steady upward trajectory is observed in the share price, which increased from 138.61 USD in 2017 to 270.42 USD in 2021. This represents a consistent growth in market valuation throughout the analyzed timeframe.
- Earnings per Share (EPS) Performance
- Earnings per share exhibited considerable instability. Following a high of 19.03 USD in 2017, EPS experienced a sharp decline to 9.97 USD in 2018. A period of fluctuation followed, with earnings reaching a low of 7.99 USD in 2020 before recovering to 12.53 USD by the end of 2021.
- P/E Ratio Analysis
- The P/E ratio underwent a dramatic expansion, rising from 7.28 in 2017 to a peak of 30.73 in 2020. This increase was driven by the divergence between rising share prices and declining earnings. A correction occurred in 2021, with the ratio descending to 21.58, a shift primarily attributed to the recovery in earnings per share despite the continued increase in share price.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Price to Operating Profit (P/OP)
Norfolk Southern Corp., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 239,777,444 | 251,911,634 | 257,844,180 | 267,455,326 | 283,997,242 | |
| Selected Financial Data (US$) | ||||||
| Income from railway operations (in millions) | 4,447) | 3,002) | 3,989) | 3,959) | 3,586) | |
| Operating profit per share2 | 18.55 | 11.92 | 15.47 | 14.80 | 12.63 | |
| Share price1, 3 | 270.42 | 245.57 | 212.68 | 171.46 | 138.61 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 14.58 | 20.61 | 13.75 | 11.58 | 10.98 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| FedEx Corp. | 13.46 | — | — | — | — | |
| Uber Technologies Inc. | — | — | — | — | — | |
| Union Pacific Corp. | 16.53 | — | — | — | — | |
| United Airlines Holdings Inc. | — | — | — | — | — | |
| United Parcel Service Inc. | 14.20 | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Transportation | 21.54 | — | — | — | — | |
| P/OP Ratio, Industry | ||||||
| Industrials | 22.38 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Income from railway operations ÷ No. shares of common stock outstanding
= 4,447,000,000 ÷ 239,777,444 = 18.55
3 Closing price as at the filing date of Norfolk Southern Corp. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 270.42 ÷ 18.55 = 14.58
5 Click competitor name to see calculations.
An analysis of the valuation multiples between 2017 and 2021 reveals a consistent appreciation in share price coupled with fluctuating operating performance, resulting in significant volatility in the Price to Operating Profit (P/OP) ratio.
- Share Price Appreciation
- The share price exhibited a continuous upward trajectory throughout the five-year period, rising from 138.61 US$ in 2017 to 270.42 US$ by the end of 2021. This represents a steady increase in market valuation regardless of short-term fluctuations in operating profit.
- Operating Profit per Share Dynamics
- Operating profit per share grew steadily from 12.63 US$ in 2017 to a peak of 15.47 US$ in 2019. A notable contraction occurred in 2020, where profit fell to 11.92 US$, before rebounding sharply in 2021 to reach a period high of 18.55 US$.
- P/OP Ratio Interpretation
- The P/OP ratio remained relatively stable between 2017 and 2019, moving from 10.98 to 13.75. A significant valuation spike occurred in 2020, with the ratio reaching 20.61. This expansion was driven by the divergence between a rising share price and a declining operating profit per share. By 2021, the ratio normalized to 14.58 as the growth in operating profit outpaced the increase in share price.
The overall trend suggests that while the market maintained a bullish outlook on the stock price throughout the period, the valuation multiple was highly sensitive to the operating profit dip in 2020. The subsequent reduction in the P/OP ratio in 2021 indicates a return to more sustainable valuation levels supported by strengthened operational earnings.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Price to Sales (P/S)
Norfolk Southern Corp., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 239,777,444 | 251,911,634 | 257,844,180 | 267,455,326 | 283,997,242 | |
| Selected Financial Data (US$) | ||||||
| Railway operating revenues (in millions) | 11,142) | 9,789) | 11,296) | 11,458) | 10,551) | |
| Sales per share2 | 46.47 | 38.86 | 43.81 | 42.84 | 37.15 | |
| Share price1, 3 | 270.42 | 245.57 | 212.68 | 171.46 | 138.61 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 5.82 | 6.32 | 4.85 | 4.00 | 3.73 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| FedEx Corp. | 0.94 | — | — | — | — | |
| Uber Technologies Inc. | 3.90 | — | — | — | — | |
| Union Pacific Corp. | 7.08 | — | — | — | — | |
| United Airlines Holdings Inc. | 0.63 | — | — | — | — | |
| United Parcel Service Inc. | 1.87 | — | — | — | — | |
| P/S Ratio, Sector | ||||||
| Transportation | 2.03 | — | — | — | — | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.07 | — | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Railway operating revenues ÷ No. shares of common stock outstanding
= 11,142,000,000 ÷ 239,777,444 = 46.47
3 Closing price as at the filing date of Norfolk Southern Corp. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 270.42 ÷ 46.47 = 5.82
5 Click competitor name to see calculations.
The financial data reveals a significant expansion in valuation multiples between 2017 and 2021, characterized by a share price that consistently outpaced revenue growth.
- Share Price Trajectory
- A continuous and steady increase in share price is observed, rising from 138.61 US$ in 2017 to 270.42 US$ by the end of 2021. This represents a sustained upward trend in market valuation over the five-year period.
- Sales per Share Dynamics
- Sales per share exhibited a general upward trend, increasing from 37.15 US$ in 2017 to a peak of 46.47 US$ in 2021. However, a notable contraction occurred in 2020, where sales per share declined to 38.86 US$ from the 43.81 US$ recorded in 2019.
- Price-to-Sales (P/S) Ratio Evolution
- The P/S ratio grew from 3.73 in 2017 to a peak of 6.32 in 2020, before moderating to 5.82 in 2021. The expansion of this ratio indicates that investors were willing to pay a higher premium for each dollar of sales as time progressed.
The peak in the P/S ratio during 2020 is particularly noteworthy, as it coincides with the only period of decline in sales per share. The combination of a falling revenue base and a continuing increase in share price led to a sharp spike in the multiple. The subsequent decline in the ratio in 2021 is attributed to a strong recovery in sales per share, which helped realign the valuation multiple more closely with underlying revenue performance.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Price to Book Value (P/BV)
Norfolk Southern Corp., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 239,777,444 | 251,911,634 | 257,844,180 | 267,455,326 | 283,997,242 | |
| Selected Financial Data (US$) | ||||||
| Stockholders’ equity (in millions) | 13,641) | 14,791) | 15,184) | 15,362) | 16,359) | |
| Book value per share (BVPS)2 | 56.89 | 58.72 | 58.89 | 57.44 | 57.60 | |
| Share price1, 3 | 270.42 | 245.57 | 212.68 | 171.46 | 138.61 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 4.75 | 4.18 | 3.61 | 2.99 | 2.41 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| FedEx Corp. | 3.26 | — | — | — | — | |
| Uber Technologies Inc. | 4.71 | — | — | — | — | |
| Union Pacific Corp. | 10.90 | — | — | — | — | |
| United Airlines Holdings Inc. | 3.06 | — | — | — | — | |
| United Parcel Service Inc. | 12.76 | — | — | — | — | |
| P/BV Ratio, Sector | ||||||
| Transportation | 6.92 | — | — | — | — | |
| P/BV Ratio, Industry | ||||||
| Industrials | 5.44 | — | — | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= 13,641,000,000 ÷ 239,777,444 = 56.89
3 Closing price as at the filing date of Norfolk Southern Corp. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 270.42 ÷ 56.89 = 4.75
5 Click competitor name to see calculations.
A consistent expansion in the market valuation relative to the accounting book value was observed between 2017 and 2021. The valuation trend is characterized by a strong increase in share price while the underlying book value per share remained nearly stagnant.
- Share Price Trend
- The share price demonstrated a continuous year-over-year increase, rising from 138.61 USD in 2017 to 270.42 USD in 2021. This represents a significant upward trajectory in market pricing over the five-year period.
- Book Value per Share (BVPS) Stability
- The book value per share remained relatively flat, fluctuating within a narrow range. Starting at 57.60 USD in 2017, it reached a peak of 58.89 USD in 2019 before slightly declining to 56.89 USD by the end of 2021, indicating no significant growth in the company's net asset value per share.
- Price to Book Value (P/BV) Expansion
- Due to the divergence between the rising share price and the static book value, the P/BV ratio increased steadily from 2.41 in 2017 to 4.75 in 2021. This trend indicates that the market premium paid for the company's assets nearly doubled over the analyzed period.
The steady rise in the P/BV ratio suggests an increasing reliance on intangible factors or future growth expectations to justify the market price, as the valuation is no longer closely anchored to the historical cost of assets recorded on the balance sheet.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?