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Norfolk Southern Corp. (NSC) — WACC Analysis

WACC Breakdown

Norfolk Southern Corp. (NSC) has a weighted average cost of capital (WACC) of 7.5%. The cost of equity is 8.3%, derived from a beta of 0.76 and a risk-free rate of 4.7%. The after-tax cost of debt is 3.9%. The capital structure is 82.8% equity and 17.2% debt.

Interpretation

A WACC of 7.5% suggests that the market views Norfolk Southern Corp. as relatively low-risk, with a lower cost of financing.

Investors can compare NSC's WACC of 7.5% against industry peers to gauge its relative financing costs. A beta of 0.76 reflects the stock's volatility relative to the broader market.

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VALUATION

NSC WACC: 7.53% for Norfolk Southern Corp.

Current inputs imply a 8.28% cost of equity and a 4.92% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Norfolk Southern Corp. Common Stock (NSC) WACC Results
Weighted Average Cost of Capital
7.53%
Cost of Equity
8.28%
Risk-Free Rate4.73%
Beta0.76
Market Risk Premium4.23%
Cost of Debt
3.89%
Pre-Tax Cost of Debt4.92%
Tax Rate21.00%
Tax Shield1.03%
Capital Structure
Equity: 82.82%($76.99B)
Debt: 17.18%($15.97B)
Equity Component
6.86%
82.82% × 8.28%
Debt Component
0.67%
17.18% × 3.89%

Norfolk Southern Corp. (NSC) WACC in context

Norfolk Southern Corp. (NSC) currently screens with an estimated WACC of 7.53%. That blends a 8.28% cost of equity, a 4.92% pre-tax cost of debt, and a 82.82% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What NSC WACC implies

A 7.53% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates NSC

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 0.76 and equity accounts for 82.82% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.