Key Insights
- Norfolk Southern’s estimated fair value is US$331 based on 2 Stage Free Cash Flow to Equity
- Current share price of US$244 suggests Norfolk Southern is potentially 26% undervalued
- The US$266 analyst price target for NSC is 20% less than our estimate of fair value
Does the October share price for Norfolk Southern Corporation (NYSE:NSC) reflect what it’s really worth? Today, we will estimate the stock’s intrinsic value by taking the expected future cash flows and discounting them to today’s value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. It may sound complicated, but actually it is quite simple!
Remember though, that there are many ways to estimate a company’s value, and a DCF is just one method. For those who are keen learners of equity analysis, the Simply Wall St analysis model here may be something of interest to you.
Check out our latest analysis for Norfolk Southern
