Is Norfolk Southern Corp. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Norfolk Southern Corp. has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a P/E ratio of 19, an EV to EBITDA of 13.53, and a PEG ratio of 0.17, indicating a favorable growth outlook relative to its price.
In comparison to its peers, Norfolk Southern Corp. has a P/E ratio that is lower than Union Pacific Corp. at 36.41 and CSX Corp. at 18.17, while also being more favorable than J.B. Hunt Transport Services, Inc. at 39.82. The company's return on equity (ROE) stands at an impressive 22.32%, which is a strong indicator of its profitability. Notably, Norfolk Southern has outperformed the S&P 500 with a year-to-date return of 8.99% compared to the index's 4.96%.