Common Stock Valuation Ratios (Price Multiples)
Quarterly Data
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).
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- Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Revenues
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Historical Valuation Ratios (Summary)
Norfolk Southern Corp., historical price multiples (quarterly data)
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
The analysis of the financial valuation ratios over the specified periods reveals several notable trends. These ratios include Price to Earnings (P/E), Price to Operating Profit (P/OP), Price to Sales (P/S), and Price to Book Value (P/BV). Observing their movements provides insights into market perceptions of company performance and valuation changes over time.
- Price to Earnings (P/E) Ratio
- The P/E ratio demonstrated a general upward trend from early 2018 through late 2020, increasing from approximately 7.47 to a peak of 30.73 by December 2020. This sharp rise indicates market expectations of higher future earnings or growing investor confidence. Subsequently, the ratio declined moderately, stabilizing in the low twenties through the first quarter of 2022. The initial increase followed by a plateau suggests a period of optimism succeeded by market reassessment or normalization of earnings expectations.
- Price to Operating Profit (P/OP) Ratio
- The P/OP ratio exhibited moderate fluctuations throughout the timeline, starting near 11.3 in early 2018 and rising to a high of 20.61 by the end of 2020. This increase mirrors the trend in the P/E ratio, reflecting stronger valuation multiples applied to operating profit. However, unlike the P/E ratio, the P/OP ratio showed a more pronounced decline after the peak, dropping to approximately 13.85 by the first quarter of 2022. This sharper decrease could indicate a relative compression in operating profitability valuations or changes in operational efficiency perceptions.
- Price to Sales (P/S) Ratio
- The P/S ratio steadily climbed from around 3.86 in early 2018 to a maximum of 7.25 by March 2021, signaling improving market valuation relative to sales revenue. Following this apex, the ratio declined slightly but remained elevated above 5.4, suggesting sustained investor interest in sales growth or revenue quality despite some moderation. The consistent upward trajectory until early 2021 points to strengthening sales metrics or heightened optimism about future revenue growth prospects.
- Price to Book Value (P/BV) Ratio
- The P/BV ratio increased gradually from approximately 2.51 in early 2018 to reach 4.85 by March 2021, reflecting an increasing market premium over the company’s book value. This trend indicates positive sentiment regarding asset quality or intangible value components not captured in book figures. Minor fluctuations followed, with values slightly decreasing but remaining close to the elevated levels near 4.65 by the first quarter of 2022. The sustained higher ratio suggests ongoing favorable perceptions of asset valuation and potential growth opportunities embedded in the company’s equity base.
Overall, the financial ratios illustrate a period of rising valuation multiples across earnings, operating profit, sales, and book value, particularly marked from 2018 through 2020-2021. The peaks observed in late 2020 to early 2021 reflect heightened market confidence and growth expectations, while the subsequent mild declines point to a phase of valuation adjustment or normalization. Despite some contraction, the ratios remain notably higher than at the start of the observed period, indicating a generally more favorable valuation environment by early 2022 compared to early 2018.
Price to Earnings (P/E)
Norfolk Southern Corp., historical P/E calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Net income (in millions) | |||||||||||||||||||||||
| Earnings per share (EPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/E ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/E Ratio, Competitors5 | |||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2022 Calculation
EPS
= (Net incomeQ1 2022
+ Net incomeQ4 2021
+ Net incomeQ3 2021
+ Net incomeQ2 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Norfolk Southern Corp. Quarterly or Annual Report.
4 Q1 2022 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price experienced a general upward trajectory from early 2018 through the end of 2019, rising from approximately $146 to over $212. This growth phase culminated in a peak towards the end of 2019. However, the onset of 2020 saw increased volatility, with the price dropping to around $180 by March, followed by a mid-year recovery and surpassing previous highs to reach about $245 by December 2020. The price continued to rise in 2021, peaking near $287 in the third quarter, before a slight decline in the last quarter and early 2022, settling near $263.
- Earnings Per Share (EPS) Analysis
- EPS showed a consistent level around 20 in 2018’s first three quarters, but significantly declined in the fourth quarter to under 10. This lower level persisted through 2019 and 2020, showing a downturn especially notable during 2020. Starting in late 2020 and throughout 2021, EPS displayed a recovery trend, increasing from roughly 8 to above 12.7 by early 2022, though it had yet to return to the peak levels seen in 2018.
- Price-to-Earnings (P/E) Ratio Insights
- The P/E ratio remained relatively low during early 2018, fluctuating between 7 and 8, indicating relatively modest market valuation compared to earnings. A marked increase occurred from late 2018 into 2019 and beyond, with ratios climbing into the high teens and even reaching above 30 by the end of 2020 and early 2021. This sharp rise reflects heightened share prices relative to the reduced EPS during this period. Subsequently, the ratio has declined somewhat through 2021 and into early 2022, stabilizing in the low 20s, suggesting a moderation in market optimism or improved earnings relative to price.
- Summary of Financial Dynamics
- Overall, the data show an initial period of strong performance up to late 2018, followed by a pronounced earnings drop and subsequent market adjustment seen in the significant P/E expansion. The share price remained comparatively resilient, eventually recovering and reaching new highs through 2021, supported by an improving EPS trend. The volatility in ratios suggests investor reactions to both earnings fluctuations and broader market conditions, with recent stabilization indicating a possible alignment between market valuation and company earnings performance.
Price to Operating Profit (P/OP)
Norfolk Southern Corp., historical P/OP calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Income from railway operations (in millions) | |||||||||||||||||||||||
| Operating profit per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/OP ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/OP Ratio, Competitors5 | |||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2022 Calculation
Operating profit per share
= (Income from railway operationsQ1 2022
+ Income from railway operationsQ4 2021
+ Income from railway operationsQ3 2021
+ Income from railway operationsQ2 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Norfolk Southern Corp. Quarterly or Annual Report.
4 Q1 2022 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited a generally upward trajectory from March 2018 through March 2022, with some fluctuations. It increased from $145.96 in March 2018 to a peak of $287.06 in September 2021. Notable dips occurred in the first quarters of 2020 and 2022, with values declining to $180.33 and $262.53, respectively, compared to previous quarters. Despite these fluctuations, the overall trend is positive, reflecting growth over the examined period.
- Operating Profit Per Share (OPPS)
- Operating profit per share followed a broadly increasing trend from $12.91 in March 2018 to $18.95 in March 2022, indicating improving profitability on a per-share basis. A decline was observed during the year 2020, coinciding with wider market and economic disruptions, where OPPS dropped to a low of $11.73 in September 2020. However, the metric recovered strongly in the subsequent periods, surpassing pre-2020 levels by 2021 and continuing to rise into early 2022.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio showed greater volatility over the period. Initially fluctuating between approximately 11 and 13 during 2018 and 2019, it increased substantially in 2020, reaching a peak of 20.61 in December 2020 and March 2021. This elevation suggests the market was valuing the company’s earnings more highly relative to operating profits at that time. Following this peak, the ratio declined steadily through 2021 and into early 2022, settling around 13.85 in March 2022, which points toward a moderation of market expectations or a correction in valuation multiples.
- Summary of Insights
- The data reflects resilience in share price and profitability after a notable downturn in 2020, likely linked to external economic challenges. Operating profit per share experienced a dip during that period but recovered robustly, indicating effective operational management or market recovery. The P/OP ratio's spike and subsequent decline may reflect shifting investor sentiment, valuation adjustments, or changes in growth expectations. Overall, the company demonstrated growth in shareholder value and earnings capacity over the timeframe examined, with valuation multiples adjusting in response to external market conditions.
Price to Sales (P/S)
Norfolk Southern Corp., historical P/S calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Railway operating revenues (in millions) | |||||||||||||||||||||||
| Sales per share2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/S ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/S Ratio, Competitors5 | |||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2022 Calculation
Sales per share
= (Railway operating revenuesQ1 2022
+ Railway operating revenuesQ4 2021
+ Railway operating revenuesQ3 2021
+ Railway operating revenuesQ2 2021)
÷ No. shares of common stock outstanding
= ( + + + )
÷ =
3 Closing price as at the filing date of Norfolk Southern Corp. Quarterly or Annual Report.
4 Q1 2022 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
- Share Price Trends
- The share price exhibited notable fluctuations over the observed quarters. Initially, it increased from $145.96 in March 2018 to $171.46 by December 2018. The trend continued upward with some volatility, peaking at $212.68 in December 2019 before a dip occurred in early 2020 coinciding with broader market disruptions. Subsequently, the price recovered robustly, reaching a high of $287.06 in September 2021. The latest data point in March 2022 shows a slight decline to $262.53, indicating some recent price correction or market adjustment.
- Sales Per Share Dynamics
- Sales per share demonstrated a more stable and modest upward trend relative to share price. Starting at $37.85 in March 2018, it gradually rose to $43.81 by December 2019. However, a decline occurred through mid to late 2020, bottoming around $38.86 in December 2020. From this point, sales per share resumed growth, reaching $47.91 by March 2022. This pattern indicates some underlying fluctuations in revenue or operational performance during 2020, followed by recovery and growth.
- Price-to-Sales (P/S) Ratio Analysis
- The P/S ratio experienced pronounced volatility and an overall upward trajectory during the examined period. Starting at a moderate 3.86 in March 2018, the ratio increased sharply towards the end of 2019, reaching 4.85. This measure surged further during 2020, touching a peak of 6.32 in December 2020 and reaching an even higher level of 7.25 by March 2021. The ratio subsequently declined slightly but remained elevated above 5.4 through early 2022. This suggests growing market valuation relative to sales, potentially reflecting investor optimism, improved profit margins, or a premium on anticipated future growth.
- Summary of Observed Financial Patterns
- The data reveal a company experiencing significant share price appreciation, especially post-2020 recovery from earlier declines. Sales per share trends suggest some operational challenges or market impact during 2020, with a strong rebound thereafter. The rising P/S ratio points to increasing investor confidence or valuation multiples outpacing sales growth. Overall, these trends imply strengthened market perception and improving financial performance, notwithstanding some volatility associated with broader economic conditions during the period.
Price to Book Value (P/BV)
Norfolk Southern Corp., historical P/BV calculation (quarterly data)
| Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | |||||||||||||||||||||||
| Selected Financial Data (US$) | |||||||||||||||||||||||
| Stockholders’ equity (in millions) | |||||||||||||||||||||||
| Book value per share (BVPS)2 | |||||||||||||||||||||||
| Share price1, 3 | |||||||||||||||||||||||
| Valuation Ratio | |||||||||||||||||||||||
| P/BV ratio4 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| P/BV Ratio, Competitors5 | |||||||||||||||||||||||
| FedEx Corp. | |||||||||||||||||||||||
| Uber Technologies Inc. | |||||||||||||||||||||||
| Union Pacific Corp. | |||||||||||||||||||||||
| United Airlines Holdings Inc. | |||||||||||||||||||||||
| United Parcel Service Inc. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Data adjusted for splits and stock dividends.
2 Q1 2022 Calculation
BVPS = Stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Norfolk Southern Corp. Quarterly or Annual Report.
4 Q1 2022 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals significant fluctuations and notable trends over the examined period.
- Share Price
- The share price demonstrated a general upward trend from March 2018 through March 2022, with intermittent periods of volatility. Beginning at $145.96 in the first quarter of 2018, the price increased to a peak of $284.09 in the first quarter of 2021. This represents a near doubling of the share price over three years. However, following this peak, there was a moderate decline to $262.53 by March 2022. Within the timeframe, share prices reflected responsiveness to market conditions with dips notably around the early 2020 period, likely influenced by broader economic factors.
- Book Value Per Share (BVPS)
- Book value per share remained relatively stable across the periods, fluctuating narrowly between a low of $56.48 and a high of $59.13. This stability indicates consistent underlying net asset value per share, suggesting limited changes in the company's equity base or retained earnings over the quarters. The slight gradual decline towards $56.48 by March 2022 may indicate marginal asset base erosion or minor equity adjustments.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio exhibited considerable upward movement over the period, starting at 2.51 and climbing to a high of 5.03 during the third quarter of 2021 before slightly retracting to 4.65 by March 2022. This trend indicates that the market increasingly valued the company’s stock at a premium over its book value. The steep increase in P/BV during 2020 and 2021 aligns with the substantial share price appreciation while book value per share remained steady, reflecting heightened investor confidence, potential growth expectations, or market optimism regarding future profitability and prospects.
Overall, the analysis points to a strong market valuation growth driven primarily by rising share prices rather than fundamental book value changes. The elevated P/BV ratios in the latter periods underscore a shift towards market optimism or speculative valuation increases.