Norfolk Southern Corporation, together with its subsidiaries, engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. The company transports agriculture, forest, and consumer products comprising soybeans, wheat, corn, fertilizers, livestock and poultry feed, food products, food oils, flour, sweeteners, ethanol, lumber and wood products, pulp board and paper products, wood fibers, wood pulp, scrap paper, beverages, canned goods, and consumer products; chemicals consist of sulfur and related chemicals, petroleum products, chlorine and bleaching compounds, plastics, rubber, industrial chemicals, chemical wastes, and sand; metals and construction materials, such as steel, aluminum products, machinery, scrap metals, cement, aggregates, minerals, clay, transportation equipment, and military-related products; and automotive, including finished motor vehicles and automotive parts, as well as coal. It also transports overseas freight through various Atlantic and Gulf Coast ports; and provides commuter rail passenger transportation services and operates an intermodal network. As of December 31, 2021, the company operated approximately 19,300 route miles in 22 states and the District of Columbia. Norfolk Southern Corporation was incorporated in 1980 and is based in Atlanta, Georgia.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	12,745	12,156	12,123	12,251.8	12,655.3	13,234.5	13,234.5	13,234.5
Revenue % Chg.	14.4%	-4.6%	-0.3%
EBIT	4,809	3,967	4,579	4,246.1	4,475.8	4,858.4	4,858.4	4,858.4
EBIT Margin	37.7%	32.6%	37.8%
Tax Rate	20.8%	21.3%	21.2%
NOPAT	3,807.6	3,124	3,606.5	3,269.1	3,436.6	3,731.3	3,731.3	3,731.3
NOPAT Margin	29.9%	25.7%	29.7%	26.7%	27.2%	28.2%	28.2%	28.2%
D&A	1,221	1,298	1,353	1,391.8	1,432.7	1,478.7	1,478.7	1,478.7
D&A / Revenue	9.6%	10.7%	11.2%
Capex	-1,948	-2,349	-4,024	-2,117.1	-2,135.5	-2,175.5	-2,175.5	-2,175.5
Capex / Revenue	-15.3%	-19.3%	-33.2%
Chg. NWC	-201	368	625	269.8	278.7	291.4	291.4	291.4
Chg. NWC / Revenue	-1.6%	3%	5.2%
Unlevered FCF (UFCF)	2,879.6	2,441	1,560.5	2,813.6	3,012.4	3,325.9	3,325.9	3,325.9
UFCF % Chg.	-14.9%	-15.2%	-36.1%	80.3%	7.1%	10.4%	—	—
PV of UFCF	—	—	—	2,613.5	2,599.3	2,665.8	2,476.3	2,300.2
Sum of PV of UFCF	—	—	—	2,613.5	5,212.9	7,878.7	10,355	12,655.2

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.5%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.8%
Total Debt	18,012
Market Cap	65,983.1
Total Capital	83,995.1
Debt Weighting	21.4%
Equity Weighting	78.6%
WACC	7.7%

Exit Multiple EV/FCF
Terminal Value	82,182.1
PV of Terminal Value	52,797.6
Cumulative PV of UFCF	12,655.2
Net Debt	16,199
Equity Value	49,253.8
Shares Outstanding	224.4
Implied Share Price	219.5
Current Share Price	294.1
Implied Upside / (Downside)	-25.4%