Enterprise Value to FCFF (EV/FCFF)
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Norfolk Southern Corp. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Common-Size Income Statement
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Book Value (P/BV) since 2005
- Aggregate Accruals
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Free Cash Flow to The Firm (FCFF)
Norfolk Southern Corp., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1, 2 See details »
The cash flow data reveals notable trends over the five-year period ending December 31, 2021.
- Net cash provided by operating activities
- This metric shows a general upward trend, starting at $3,253 million in 2017 and increasing consistently to $4,255 million by 2021. There is a modest dip in 2020 to $3,637 million compared to the previous year, which could be indicative of operational challenges during that period. However, the strong rebound in 2021 surpasses previous highs, reflecting improved operational performance or efficiency.
- Free cash flow to the firm (FCFF)
- FCFF also demonstrates a steady increase over the same period, rising from $2,089 million in 2017 to $3,401 million in 2021. Unlike the operating cash flow, FCFF does not show a decline in 2020 but continues to grow each year, suggesting effective capital expenditure management or changes in investment activities that have supported cash availability for the firm.
Overall, both cash flow measures indicate strengthening financial capacity, with the firm managing to improve its cash generation capabilities over these years despite a slight operational slowdown in 2020. The consistent rise in free cash flow highlights an enhanced ability to generate cash after capital expenditures, which is a positive sign for sustaining business operations and potential growth investments.
Interest Paid, Net of Tax
Norfolk Southern Corp., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
2 2021 Calculation
Cash paid during the year for interest, net of amounts capitalized, tax = Cash paid during the year for interest, net of amounts capitalized × EITR
= × =
3 2021 Calculation
Interest capitalized, tax = Interest capitalized × EITR
= × =
- Effective Income Tax Rate (EITR)
- The effective income tax rate has exhibited a declining trend from 2017 to 2020, starting at 34.9% in 2017 and decreasing significantly to 20.4% in 2020. In 2021, there was a slight increase to 22.5%, indicating some variability after the prior consistent decline.
- Cash Paid During the Year for Interest, Net of Amounts Capitalized, Net of Tax
- The cash paid for interest increased steadily from 2017 through 2020, rising from $344 million in 2017 to $459 million in 2020. However, in 2021, this figure slightly decreased to $449 million, suggesting stabilization or minor reduction after a period of growth.
- Interest Capitalized, Net of Tax
- Interest capitalized showed a gradual decrease over the period, moving down from $13 million in 2017 and 2018 to $9 million in 2021. This reflects a consistent reduction in the amount of interest being capitalized.
Enterprise Value to FCFF Ratio, Current
Norfolk Southern Corp., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Free cash flow to the firm (FCFF) | |
| Valuation Ratio | |
| EV/FCFF | |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| FedEx Corp. | |
| Uber Technologies Inc. | |
| Union Pacific Corp. | |
| United Airlines Holdings Inc. | |
| United Parcel Service Inc. | |
| EV/FCFF, Sector | |
| Transportation | |
| EV/FCFF, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Norfolk Southern Corp., historical EV/FCFF calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Free cash flow to the firm (FCFF)2 | ||||||
| Valuation Ratio | ||||||
| EV/FCFF3 | ||||||
| Benchmarks | ||||||
| EV/FCFF, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| EV/FCFF, Sector | ||||||
| Transportation | ||||||
| EV/FCFF, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/FCFF = EV ÷ FCFF
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- Over the five-year period from 2017 to 2021, the enterprise value exhibited a consistent upward trajectory. Starting at approximately $48.5 billion in 2017, it increased steadily each year to reach roughly $77.8 billion by the end of 2021. This represents a substantial growth in the company's overall market valuation.
- Free Cash Flow to the Firm (FCFF)
- The free cash flow to the firm showed a stable and continuous growth throughout the period analyzed. Beginning at $2.1 billion in 2017, FCFF rose incrementally each year, reaching $3.4 billion in 2021. This upward trend indicates enhanced cash-generating ability by the company over time.
- EV to FCFF Ratio
- The ratio of enterprise value to free cash flow to the firm (EV/FCFF) remained relatively consistent, fluctuating within a narrow range. It started at 23.22 in 2017, increased moderately to peak at 24.92 in 2020, and then decreased to 22.89 in 2021. This pattern suggests that despite increases in both EV and FCFF, the market valuation relative to cash flow has been fairly stable with a slight moderation towards the end of the period.
- Summary
- The data indicates that the company's valuation and cash flow performance have both improved steadily over the five-year timeframe. The stability of the EV/FCFF ratio points to balanced market expectations and a consistent relationship between the firm's cash-generating capability and its market valuation. Overall, these trends reflect positive financial health and growth in intrinsic value.