CSX Corporation, together with its subsidiaries, provides rail-based freight transportation services. The company offers rail services; and transportation of intermodal containers and trailers, as well as other transportation services, such as rail-to-truck transfers and bulk commodity operations. It transports chemicals, agricultural and food products, automotive, minerals, forest products, fertilizers, and metals and equipment; and coal, coke, and iron ore to electricity-generating power plants, steel manufacturers, and industrial plants, as well as exports coal to deep-water port facilities. The company also offers intermodal transportation services through a network of approximately 30 terminals transporting manufactured consumer goods in containers; and drayage services, including the pickup and delivery of intermodal shipments. It serves the automotive industry with distribution centers and storage locations, as well as connects non-rail served customers through transferring products, such as plastics and ethanol from rail to trucks. The company operates approximately 19,500 route mile rail network, which serves various population centers in 23 states east of the Mississippi River, the District of Columbia, and the Canadian provinces of Ontario and Quebec, as well as owns and leases approximately 3,500 locomotives. It also serves production and distribution facilities through track connections. CSX Corporation was incorporated in 1978 and is headquartered in Jacksonville, Florida.

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	14,853	14,657	14,540	14,184.2	14,788.7	15,421.4	15,421.4	15,421.4
Revenue % Chg.	18.6%	-1.3%	-0.8%
EBIT	5,821	5,496	5,416	4,827.5	5,335.5	5,696.4	5,696.4	5,696.4
EBIT Margin	39.2%	37.5%	37.2%
Tax Rate	23%	24%	23.8%
NOPAT	4,480.4	4,174.6	4,125.9	3,668.9	4,040.1	4,308.3	4,308.3	4,308.3
NOPAT Margin	30.2%	28.5%	28.4%	25.9%	27.3%	27.9%	27.9%	27.9%
D&A	1,502	1,607	1,658	1,705.3	1,753	1,796.9	1,796.9	1,796.9
D&A / Revenue	10.1%	11%	11.4%
Capex	-2,113	-2,257	-2,529	-2,894.8	-2,516.3	-2,603.9	-2,603.9	-2,603.9
Capex / Revenue	-14.2%	-15.4%	-17.4%
Chg. NWC	64	154	74	94.1	98.1	102.3	102.3	102.3
Chg. NWC / Revenue	0.4%	1.1%	0.5%
Unlevered FCF (UFCF)	3,933.4	3,678.6	3,328.9	2,573.5	3,374.9	3,603.6	3,603.6	3,603.6
UFCF % Chg.	3.6%	-6.5%	-9.5%	-22.7%	31.1%	6.8%	—	—
PV of UFCF	—	—	—	2,395	2,923.1	2,904.8	2,703.4	2,515.9
Sum of PV of UFCF	—	—	—	2,395	5,318.2	8,223	10,926.3	13,442.3

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.3%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	8.7%
Total Debt	19,185
Market Cap	65,114.8
Total Capital	84,299.8
Debt Weighting	22.8%
Equity Weighting	77.2%
WACC	7.5%

Exit Multiple EV/FCF
Terminal Value	84,312.8
PV of Terminal Value	54,783.1
Cumulative PV of UFCF	13,442.3
Net Debt	19,193
Equity Value	49,032.4
Shares Outstanding	1,862
Implied Share Price	26.3
Current Share Price	35
Implied Upside / (Downside)	-24.7%