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Relatively High EV/EBITDA Ratio Detected in Shares of Genesee & Wyoming in the Railroads Industry (GWR, CSX, UNP, NSC, KSU)

By Nick Russo

Below are the three companies in the Railroads industry with the highest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Genesee & Wyoming ranks highest with a an EV/EBITDA ratio of 13.32. CSX is next with a an EV/EBITDA ratio of 11.45. Union Pacific ranks third highest with a an EV/EBITDA ratio of 10.73.

Norfolk Southern follows with a an EV/EBITDA ratio of 10.38, and Kansas City Southern rounds out the top five with a an EV/EBITDA ratio of 10.04.

SmarTrend recommended that subscribers consider buying shares of Union Pacific on November 10th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $96.91. Since that recommendation, shares of Union Pacific have risen 9.4%. We continue to monitor Union Pacific for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio genesee & wyoming union pacific Norfolk Southern kansas city southern

Ticker(s): GWR CSX UNP NSC KSU