Norfolk Southern (HAM:NFS) 5-Year Yield-on-Cost %: 2.41 (As of Jul. 09, 2026) — 14% Below Median


HAM:NFS Norfolk Southern Corp HAM:NFS
83 GF Score
Price €279.40
GF Value €223.28
Valuation Modestly Overvalued
! 10 Warning Signs
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What is Norfolk Southern 5-Year Yield-on-Cost %?

Norfolk Southern HAM:NFS -0.92% 83 5-Year Yield-on-Cost % is 2.41 as of Jul. 09, 2026, which is 14% below its 10-year median of 2.81. GuruFocus rates HAM:NFS with a GF Score™ of 83/100 and a GF Value™ of €223.28 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 660 Transportation companies, Norfolk Southern ranks worse than 68.79% on this metric.

Norfolk Southern's yield on cost for the quarter that ended in Mar. 2026 was 2.41.


The historical rank and industry rank for Norfolk Southern's 5-Year Yield-on-Cost % or its related term are showing as below:

HAM:NFS' s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.92   Med: 2.81   Max: 4.28
Current: 2.41


During the past 13 years, Norfolk Southern's highest Yield on Cost was 4.28. The lowest was 1.92. And the median was 2.81.


HAM:NFS's 5-Year Yield-on-Cost % is ranked worse than
68.79% of 660 companies
in the Transportation industry
Industry Median: 4.03 vs HAM:NFS: 2.41

Norfolk Southern  (HAM:NFS) 5-Year Yield-on-Cost % Explanation

Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.


Norfolk Southern 5-Year Yield-on-Cost % Related Terms


HAM:NFS vs CSX, WAB, TRN: 5-Year Yield-on-Cost % Comparison

For the Railroads subindustry, Norfolk Southern's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Norfolk Southern 5-Year Yield-on-Cost % vs Transportation Industry

For the Transportation industry and Industrials sector, Norfolk Southern's 5-Year Yield-on-Cost % distribution charts can be found below:

* The bar in red indicates where Norfolk Southern's 5-Year Yield-on-Cost % falls into.


HAM:NFS
83GF Score
Norfolk Southern Corp HAM:NFS
5-Year Yield-on-Cost % is just one metric. See GF Score™, valuation, warning signs, and more.
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Norfolk Southern 5-Year Yield-on-Cost % Calculation

Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.

Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.

Therefore, Yield-on-Cost of Norfolk Southern is calculated as

Yield-on-Cost=Dividend Yield %*(1+Dividend Growth Rate)^5
Frequently Asked Questions Learn more about 5-Year Yield-on-Cost % →
What does a 5-Year Yield-on-Cost % of 2.41 mean?
Norfolk Southern (HAM:NFS) has a 5-Year Yield-on-Cost % of 2.41 as of Jul. 09, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Norfolk Southern and its competitors. This is 14% below median its historical median of 2.81. Over the past decade, Norfolk Southern's 5-Year Yield-on-Cost % has ranged from 1.92 to 4.28. According to the industry distribution chart, Norfolk Southern ranks #454 out of 660 companies in the Transportation industry, placing it in the top 68.8%.
Is Norfolk Southern's 5-Year Yield-on-Cost % too high?
Norfolk Southern's current 5-Year Yield-on-Cost % of 2.41 is 14% below median its 10-year median of 2.81. Over the past 10 years, this metric has ranged from a low of 1.92 to a high of 4.28. The Transportation industry median 5-Year Yield-on-Cost % is 4.03. Norfolk Southern's value of 2.41 is 40.2% below this industry median. Based on the distribution chart, Norfolk Southern ranks #454 out of 660 companies in the Transportation industry, which is below the industry midpoint. Overall, Norfolk Southern has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Norfolk Southern's 5-Year Yield-on-Cost % compare to CSX and WAB?
According to the Transportation industry distribution chart, Norfolk Southern ranks #454 out of 660 companies for 5-Year Yield-on-Cost %. This places Norfolk Southern in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 4.03. Norfolk Southern's value of 2.41 is 40.2% below this benchmark. Historically, Norfolk Southern's own 5-Year Yield-on-Cost % has ranged from 1.92 to 4.28 over the past decade. While the company's 10-year median is 2.81 vs. the industry median of 4.03, Norfolk Southern has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Transportation company?
The median 5-Year Yield-on-Cost % among Transportation companies is 4.03, based on 660 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Norfolk Southern's current 5-Year Yield-on-Cost % of 2.41 is 40.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Norfolk Southern and its competitors. For the Transportation industry, the median 5-Year Yield-on-Cost % is 4.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Norfolk Southern's current 5-Year Yield-on-Cost % is 2.41, which is 14% below median its own 10-year median of 2.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Norfolk Southern stock overvalued right now?
Based on GuruFocus' analysis, Norfolk Southern (HAM:NFS) is currently considered Modestly Overvalued. The stock's GF Value™ is €223.28, compared to a current price of €279.40 — trading 25.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 2.41, which is 14% below median its 10-year median of 2.81 and 40.2% below the Transportation industry median of 4.03. Norfolk Southern's overall GF Score™ is 83/100 with 10 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Norfolk Southern (HAM:NFS), the current 5-Year Yield-on-Cost % is 2.41 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Norfolk Southern (HAM:NFS) Overvalued in 2026?

Based on GuruFocus' analysis, Norfolk Southern stock appears to be overvalued. The current stock price of €279.40 is trading 25.1% above its estimated GF Value™ of €223.28. GuruFocus considers Norfolk Southern to be Modestly Overvalued.

Key valuation signals for HAM:NFS:

  • 5-Year Yield-on-Cost %: 2.41 (14% below median its 10-year median of 2.81)
  • GF Value™: €223.28 vs. price of €279.40 (25.1% above fair value)
  • GF Score™: 83/100 with 10 warning signs
  • Industry Position: 40.2% below the Transportation median (#454 of 660)

No single metric tells the full story. See the HAM:NFS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Norfolk Southern Business Description

Address 650 West Peachtree Street NW, Atlanta, GA, USA, 30308-1925
Class I railroad Norfolk Southern operates in the Eastern United States. On more than 20,000 miles of track, the rail hauls shipments of coal, intermodal traffic, and a diverse mix of automotive, agricultural, metal, chemical, and forest products.
83GF Score

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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€279.40
Price
€223.28
GF Value