• Return to Headlines

Kansas City Southern is Among the Companies in the Railroads Industry With the Highest EV/EBITDA Ratio (KSU, GWR, NSC, UNP, CSX)

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.

Kansas City Southern ranks highest with a an EV/EBITDA ratio of 11.18. Following is Genesee & Wyoming with a an EV/EBITDA ratio of 10.37. Norfolk Southern ranks third highest with a an EV/EBITDA ratio of 8.82.

Union Pacific follows with a an EV/EBITDA ratio of 8.75, and CSX rounds out the top five with a an EV/EBITDA ratio of 7.72.

SmarTrend recommended that subscribers consider buying shares of CSX on July 13th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $27.63. Since that recommendation, shares of CSX have risen 6.2%. We continue to monitor CSX for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

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