Norfolk Southern Corporation

Fair Value Summary

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034
% Growth	6.25%	6.00%	5.75%	5.50%	5.25%	5.00%	4.75%	4.50%	4.25%	4.00%
Revenue	12,880.71	13,653.58	14,438.68	15,232.82	16,032.56	16,834.21	17,633.84	18,427.37	19,210.54	19,978.96
EBITDA	5,841.08	6,191.56	6,547.58	6,907.71	7,270.37	7,633.89	7,996.51	8,356.35	8,711.50	9,059.96
D&A	-1,337.92	-1,418.19	-1,499.74	-1,582.23	-1,665.30	-1,748.57	-1,831.62	-1,914.05	-1,995.40	-2,075.21
EBIT	4,503.16	4,773.36	5,047.84	5,325.48	5,605.07	5,885.33	6,164.88	6,442.31	6,716.11	6,984.75
Pro forma Taxes	-654.06	-693.30	-733.17	-773.49	-814.10	-854.81	-895.41	-935.71	-975.48	-1,014.49
NOPAT	3,849.11	4,080.06	4,314.67	4,551.98	4,790.96	5,030.52	5,269.47	5,506.60	5,740.63	5,970.26
Capital Expenditures	-2,261.82	-2,397.53	-2,535.39	-2,674.84	-2,815.27	-2,956.04	-3,096.45	-3,235.79	-3,373.32	-3,508.25
NWC Investment	79.48	81.07	82.35	83.30	83.89	84.09	83.88	83.24	82.15	80.60
(+) D&A	1,337.92	1,418.19	1,499.74	1,582.23	1,665.30	1,748.57	1,831.62	1,914.05	1,995.40	2,075.21
Free Cash Flow	3,004.69	3,181.79	3,361.37	3,542.67	3,724.88	3,907.13	4,088.52	4,268.09	4,444.86	4,617.82
Diluted Shares Outstanding	225,675,000.00	225,675,000.00	225,675,000.00	225,675,000.00	225,675,000.00	225,675,000.00	225,675,000.00	225,675,000.00	225,675,000.00	225,675,000.00

Metric	Dec-25	Dec-26	Dec-27	Dec-28	Dec-29	Dec-30	Dec-31	Dec-32	Dec-33	Dec-34
Period Start	9/30/25	1/1/26	1/1/27	1/1/28	1/1/29	1/1/30	1/1/31	1/1/32	1/1/33	1/1/34
Period End	12/31/25	12/31/26	12/31/27	12/31/28	12/31/29	12/31/30	12/31/31	12/31/32	12/31/33	12/31/34
Mid-Point	11/15/25	7/2/26	7/2/27	7/1/28	7/2/29	7/2/30	7/2/31	7/1/32	7/2/33	7/2/34
Time (t)	0.10	0.46	1.46	2.46	3.46	4.46	5.46	6.46	7.46	8.46
Valuation Date	1/16/26

WACC: 9.10%Terminal Growth: 2.26%

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	TV (5y)	TV (10y)
Discount Factor	0.99	0.96	0.88	0.81	0.74	0.68	0.62	0.57	0.52	0.48
PV UFCF	2,978.64	3,056.86	2,960.08	2,859.58	2,755.92	2,649.69	2,541.48	2,431.85	2,321.37	2,210.58	Raw: 55,701.71 39,456.09	Raw: 69,054.72 31,648.63

WACC: 10.10%Terminal Growth: 1.76%

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	TV (5y)	TV (10y)
Discount Factor	0.99	0.96	0.87	0.79	0.72	0.65	0.59	0.54	0.49	0.44
PV UFCF	2,975.92	3,044.06	2,920.91	2,796.11	2,670.27	2,544.03	2,417.97	2,292.65	2,168.62	2,046.36	Raw: 45,458.02 31,057.32	Raw: 56,355.37 23,800.80

WACC: 8.10%Terminal Growth: 2.76%

Metric	2025	2026	2027	2028	2029	2030	2031	2032	2033	2034	TV (5y)	TV (10y)
Discount Factor	0.99	0.96	0.89	0.83	0.76	0.71	0.65	0.60	0.56	0.52
PV UFCF	2,981.38	3,069.84	3,000.15	2,925.09	2,845.14	2,760.78	2,672.52	2,580.90	2,486.44	2,389.68	Raw: 71,702.13 52,676.16	Raw: 88,890.81 44,243.62

Current Price$296.89

WACC Used9.1%

IMPLIED REVENUE GROWTH151.49%

Metric	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036
Implied Revenue	30,757.14	77,350.89	194,529.19	489,220.01	1,230,335.78	3,094,162.31	7,781,485.84	19,569,600.98	49,215,444.27	123,771,555.53
Constant Implied Growth	151.49%	151.49%	151.49%	151.49%	151.49%	151.49%	151.49%	151.49%	151.49%	151.49%
Implied Free Cash Flow	3.08	7.74	19.45	48.92	123.03	309.42	778.15	1,956.96	4,921.54	12,377.16
Discount Factor	0.93	0.81	0.74	0.68	0.62	0.57	0.52	0.48	0.44	0.40
Present Value of Implied FCF	2.86	6.24	14.39	33.18	76.48	176.30	406.40	936.81	2,159.51	4,978.03

Valuation based on actual realized growth.

Year	Valuation Date	Actual Price	Realized Growth (5Y)	Calculated Fair Value	Valuation Delta
2019	2019-12-31	$194.13	8.41%	$109.70	-43.49%
2018	2018-12-31	$149.54	7.91%	$99.98	-33.14%
2017	2017-12-31	$144.90	5.29%	$68.92	-52.43%
2016	2016-12-31	$108.07	3.09%	$35.75	-66.92%
2015	2015-12-31	$84.59	4.21%	$-0.31	-100.36%
2014	2014-12-31	$109.61	6.57%	$21.45	-80.43%
2013	2013-12-31	$92.83	3.09%	$35.50	-61.75%
2012	2012-12-31	$61.84	-0.78%	$12.30	-80.10%
2011	2011-12-31	$72.86	-0.80%	$23.83	-67.30%
2010	2010-12-31	$62.82	2.36%	$39.75	-36.72%
2009	2009-12-31	$52.42	8.48%	$16.37	-68.77%
2008	2008-12-31	$47.05	12.96%	$64.84	37.81%
2007	2007-12-31	$50.44	7.65%	$37.53	-25.59%
2006	2006-12-31	$50.29	4.81%	$31.89	-36.59%
2005	2005-12-31	$44.83	1.28%	$26.13	-41.72%
2004	2004-12-31	$36.19	2.73%	$9.06	-74.96%
2003	2003-12-31	$23.65	10.07%	$2.21	-90.64%
2002	2002-12-31	$19.99	9.77%	$-11.72	-158.65%
2001	2001-12-31	$18.33	9.62%	$-24.63	-234.36%
2000	2000-12-31	$13.31	7.00%	$12.61	-5.28%
1999	1999-12-31	$20.50	3.17%	$-38.43	-287.44%
1998	1998-12-31	$31.69	3.79%	$-23.24	-173.32%
1997	1997-12-31	$30.50	8.85%	$-3.70	-112.12%
1996	1996-12-31	$29.33	10.78%	$28.04	-4.39%
1995	1995-12-31	$26.46	6.98%	$25.80	-2.49%
1994	1994-12-31	$20.21	1.70%	$13.18	-34.80%
1993	1993-12-31	$23.50	-0.66%	$3.20	-86.37%
1992	1992-12-31	$20.42	2.07%	$5.41	-73.49%
1991	1991-12-31	$19.79	4.04%	$0.70	-96.44%
1990	1990-12-31	$13.92	2.78%	$9.64	-30.77%
1989	1989-12-31	$13.92	3.21%	$14.13	1.49%
1988	1988-12-31	$10.46	5.16%	$-0.26	-102.50%

Mean Fair Value
$192.99

Median
$188.55

10th Percentile
$146.45

90th Percentile
$247.30