Norfolk Southern (NSC) Stock Looks Expensive On Future Cash Flow

Norfolk Southern has seen its share price move around in recent months, yet the longer term track record still reflects a strong multi year run. With the stock around US$310, the key issue for you is whether the cash the railroad can generate over time is enough to support that valuation. Norfolk Southern has delivered a 73.4% return over the past 3 years, which raises the question of how much future cash flow is already embedded in today’s price. The business relies heavily on converting...