Discounted Cash Flow (DCF) Analysis Levered

Norfolk Southern Corporation (NSC)

$228.86

+0.83 (+0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 87.82 | 228.86 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,55111,45811,2969,78911,14211,355.4611,57311,794.7112,020.6712,250.96
Revenue (%)
Operating Cash Flow 3,2533,7263,8923,6374,2553,932.344,007.674,084.454,162.704,242.45
Operating Cash Flow (%)
Capital Expenditure -1,723-1,951-2,019-1,494-1,470-1,809.75-1,844.42-1,879.76-1,915.77-1,952.47
Capital Expenditure (%)
Free Cash Flow 1,5301,7751,8732,1432,7852,122.582,163.252,204.692,246.932,289.97

Weighted Average Cost Of Capital

Share price $ 228.86
Beta 1.363
Diluted Shares Outstanding 246.40
Cost of Debt
Tax Rate 22.51
After-tax Cost of Debt 3.62%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.218
Total Debt 13,840
Total Equity 56,391.10
Total Capital 70,231.10
Debt Weighting 19.71
Equity Weighting 80.29
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 10,55111,45811,2969,78911,14211,355.4611,57311,794.7112,020.6712,250.96
Operating Cash Flow 3,2533,7263,8923,6374,2553,932.344,007.674,084.454,162.704,242.45
Capital Expenditure -1,723-1,951-2,019-1,494-1,470-1,809.75-1,844.42-1,879.76-1,915.77-1,952.47
Free Cash Flow 1,5301,7751,8732,1432,7852,122.582,163.252,204.692,246.932,289.97
WACC
PV LFCF 1,963.351,850.861,744.821,644.851,550.60
SUM PV LFCF 8,754.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.11
Free cash flow (t + 1) 2,335.77
Terminal Value 38,228.66
Present Value of Terminal Value 25,885.69

Intrinsic Value

Enterprise Value 34,640.17
Net Debt 13,001
Equity Value 21,639.17
Shares Outstanding 246.40
Equity Value Per Share 87.82