Using the industry peer median P/E multiple (trailing + forward), Union Pacific Corporation (UNP) has a fair value of $300.36 based on 3 comparable companies in the Railroads industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Union Pacific CorporationUNP | 142,274 | 20.0x | 19.2x |
| CSX CorporationCSX | 74,010 | 25.8x | 21.6x |
| Norfolk Southern CorporationNSC | 63,453 | 22.2x | 23.2x |
| Westinghouse Air Brake Technologies CorporationWAB | 42,095 | 36.1x | 27.5x |
| Industry Median | 25.8x | 23.2x | |
| (*) Profit after tax | 7,138 | 7,400 | |
| Equity Value | 184,476 | 172,057 | |
| (/) Outstanding shares | 594 | 594 | |
| Fair Price | $311 | $290 | |
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.