Is Norfolk Southern Corp. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Norfolk Southern Corp. has moved from expensive to very expensive, indicating that the company is currently overvalued. The key ratios supporting this assessment include a P/E ratio of 19, a Price to Book Value of 4.25, and an EV to EBITDA of 13.53. Compared to peers, Norfolk Southern's P/E ratio is lower than Union Pacific Corp.'s 34.67 but higher than CSX Corp.'s 18.97, while its EV to EBITDA is also higher than CSX's 12.04, suggesting a premium valuation relative to its direct competitors.
In terms of recent performance, Norfolk Southern has outperformed the S&P 500 year-to-date with a return of 23.47% compared to the index's 13.30%, but it has significantly lagged over the longer term, with a 3-year return of 32.26% versus the S&P 500's 81.19%. This divergence in performance, alongside the elevated valuation ratios, reinforces the conclusion that Norfolk Southern Corp. is overvalued.