Using the industry peer median P/E multiple (trailing + forward), CSX Corporation (CSX) has a fair value of $42.42 based on 7 comparable companies in the Railroads industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| CSX CorporationCSX | 74,178 | 25.8x | 21.5x |
| FedEx CorporationFDX | 83,775 | 20.9x | 17.9x |
| Quanta Services, Inc.PWR | 82,398 | 81.0x | 42.2x |
| Illinois Tool Works Inc.ITW | 75,379 | 24.9x | 25.0x |
| Cummins Inc.CMI | 73,414 | 25.9x | 25.9x |
| Republic Services, Inc.RSG | 67,417 | 31.8x | 30.1x |
| Norfolk Southern CorporationNSC | 63,453 | 22.2x | 23.2x |
| United Rentals, Inc.URI | 47,250 | 19.2x | 17.2x |
| Industry Median | 24.9x | 25.0x | |
| (*) Profit after tax | 2,889 | 3,443 | |
| Equity Value | 72,032 | 86,117 | |
| (/) Outstanding shares | 1,864 | 1,864 | |
| Fair Price | $39 | $46 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.