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GuruFocus has detected 8 Warning Signs with Norfolk Southern Corp $NSC.
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Norfolk Southern Corp (NYSE:NSC)
EV-to-EBIT
14.04 (As of Today)

EV/EBIT ratio is calculated as enterprise value divided by its Earnings Before Interest and Taxes (EBIT). As of today, Norfolk Southern Corp's enterprise value is $44,146 Mil. Norfolk Southern Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $3,145 Mil. Therefore, Norfolk Southern Corp's EV/EBIT ratio for today is 14.04.

NSC' s EV-to-EBIT Range Over the Past 10 Years
Min: 5.4   Max: 14.5
Current: 13.74

5.4
14.5

During the past 13 years, the highest EV/EBIT Ratio of Norfolk Southern Corp was 14.50. The lowest was 5.40. And the median was 10.30.

NSC's EV-to-EBIT is ranked higher than
55% of the 694 Companies
in the Global Railroads industry.

( Industry Median: 15.16 vs. NSC: 13.74 )

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt). Norfolk Southern Corp's enterprise value for the quarter that ended in Dec. 2016 was $40,642 Mil. Norfolk Southern Corp's earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was $3,145 Mil. Norfolk Southern Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 was 7.74%.


Definition

Norfolk Southern Corp's EV/EBIT for today is calculated as:

EV/EBIT=Enterprise Value (Today)/Earnings Before Interest and Taxes (EBIT) (TTM)
=44145.658/3145
=14.04

Norfolk Southern Corp's current Enterprise Value is $44,146 Mil.
Norfolk Southern Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 739 (Mar. 2016 ) + 774 (Jun. 2016 ) + 849 (Sep. 2016 ) + 783 (Dec. 2016 ) = $3,145 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This is a more accurate valuation of companies' operation because it consider the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.

Joel Greenblatt calls the inversion of this ratio Earnings Yield (Joel Greenblatt).

Norfolk Southern Corp's Earnings Yield (Joel Greenblatt) for the quarter that ended in Dec. 2016 is calculated as:

Earnings Yield (Joel Greenblatt) (Q: Dec. 2016 )=EBIT (TTM)/Enterprise Value (Q: Dec. 2016 )
=3145/40641.6894
=7.74 %

Norfolk Southern Corp's Enterprise Value for the quarter that ended in Dec. 2016 was $40,642 Mil.
Norfolk Southern Corp's Earnings Before Interest and Taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2016 was 739 (Mar. 2016 ) + 774 (Jun. 2016 ) + 849 (Sep. 2016 ) + 783 (Dec. 2016 ) = $3,145 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

Enterprise Value, Earnings Yield (Joel Greenblatt), Earnings Before Interest and Taxes (EBIT)


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Norfolk Southern Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
ev2ebit 9.457.3512.1610.039.288.4110.4811.3611.4412.92

Norfolk Southern Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
ev2ebit 11.4211.3611.6310.229.8411.4410.8311.2612.3712.92
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