Discounted Cash Flow (DCF) Analysis Levered

Norfolk Southern Corporation (NSC)

$223.91

-4.12 (-1.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 103.85 | 223.91 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 11,45811,2969,78911,14212,74513,173.6713,616.7614,074.7514,548.1515,037.47
Revenue (%)
Operating Cash Flow 3,7263,8923,6374,2554,2224,622.464,777.934,938.635,104.745,276.43
Operating Cash Flow (%)
Capital Expenditure -1,951-2,019-1,494-1,470-1,948-2,071.98-2,141.66-2,213.70-2,288.16-2,365.12
Capital Expenditure (%)
Free Cash Flow 1,7751,8732,1432,7852,2742,550.482,636.262,724.932,816.582,911.32

Weighted Average Cost Of Capital

Share price $ 223.91
Beta 1.307
Diluted Shares Outstanding 235.60
Cost of Debt
Tax Rate 20.82
After-tax Cost of Debt 3.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.306
Total Debt 15,182
Total Equity 52,753.20
Total Capital 67,935.20
Debt Weighting 22.35
Equity Weighting 77.65
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 11,45811,2969,78911,14212,74513,173.6713,616.7614,074.7514,548.1515,037.47
Operating Cash Flow 3,7263,8923,6374,2554,2224,622.464,777.934,938.635,104.745,276.43
Capital Expenditure -1,951-2,019-1,494-1,470-1,948-2,071.98-2,141.66-2,213.70-2,288.16-2,365.12
Free Cash Flow 1,7751,8732,1432,7852,2742,550.482,636.262,724.932,816.582,911.32
WACC
PV LFCF 1,536.771,459.851,386.771,317.361,251.42
SUM PV LFCF 10,603.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.81
Free cash flow (t + 1) 2,969.55
Terminal Value 43,605.66
Present Value of Terminal Value 28,588.99

Intrinsic Value

Enterprise Value 39,192.85
Net Debt 14,726
Equity Value 24,466.85
Shares Outstanding 235.60
Equity Value Per Share 103.85