Is Norfolk Southern Corp. overvalued or undervalued?

As of 28 May 2025, the valuation grade for Norfolk Southern Corp. has moved from fair to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a P/E ratio of 19, a Price to Book Value of 4.25, and an EV to EBITDA of 13.53, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Norfolk Southern's P/E ratio of 19 is lower than Union Pacific Corp.'s 36.41, but higher than CSX Corp.'s 18.17, indicating a mixed positioning within the industry. The PEG ratio of 0.17 suggests potential growth, yet the overall valuation remains high against the backdrop of its peers. Additionally, while Norfolk Southern has outperformed the S&P 500 in the past year with a return of 14.10% compared to 10.26%, the current valuation metrics indicate that the stock is not justified at its current price level.