Current Price
$46.84
PE Ratio (TTM)
28.6x
Intrinsic Value
$58.6
+20.1% margin of safety
COMPETITIVE MOAT
↑Extensive Rail Network
CSX operates a vast and integrated rail network across the eastern United States. This extensive infrastructure is difficult and costly for competitors to replicate, creating a significant barrier to entry.
↑High Switching Costs
Customers face substantial costs and operational disruptions when switching from rail to other transportation modes. This inherent stickiness locks in freight volumes for CSX.
↑Economies of Scale
The sheer volume of freight handled allows CSX to achieve significant economies of scale in operations and capital deployment. This leads to lower per-unit costs compared to smaller players.
INVESTMENT RISKS
↓Economic Sensitivity
CSX's freight volumes are highly correlated with overall economic activity. A significant economic downturn could lead to reduced demand for its services and lower revenues.
↓Regulatory Environment
The railroad industry is subject to extensive government regulation concerning safety, environmental standards, and pricing. Changes in these regulations could impact operating costs and profitability.
↓Competition from Alternatives
While rail has advantages, it faces competition from trucking and other modes of transport, especially for shorter hauls or time-sensitive shipments. Shifting freight patterns could erode market share.
Base case
CSX base case PE valuation
A base case PE valuation for CSX estimates a fair value of about $58.6 per share, against a current price of $46.84. The model assumes 11.2% annual earnings growth, a 29x target PE multiple, and a 10% discount rate.
Intrinsic Value
$58.6
Margin of safety
+20.1%
Expected annual return
+4.6%
Base case assumptions: 11.2% annual earnings growth, 29x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-15.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CSX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for CSX Corporation respond.
Open PE Calculator for CSXCompany Overview
CSX Corporation, operating through its subsidiaries, stands as a leading provider of rail-based cargo transportation services. The company offers a wide range of services, including general rail freight, the movement of intermodal containers and trailers, and specialized transport solutions such as efficient rail-to-truck transfers and the handling of bulk commodities. CSX facilitates the shipment of a diverse array of goods, encompassing industrial chemicals, agricultural and food products, automotive components and finished vehicles, minerals, timber products, fertilizers, and various metals and heavy equipment. Additionally, it plays a crucial role in energy supply chains, transporting coal, coke, and iron ore to power generation facilities, steel manufacturers, and industrial plants, and also manages the export of coal via deep-water port access. The company's intermodal operations leverage a robust network of approximately 30 terminals to transport manufactured consumer goods in containers. This also includes drayage services, managing the initial pickup and final delivery of intermodal freight. For the automotive industry, CSX provides dedicated distribution centers and storage locations, and extends its reach to clients without direct rail access by orchestrating transfers of products like plastics and ethanol from rail to road. CSX's substantial infrastructure features an extensive rail network spanning approximately 19,500 route miles. This network strategically connects numerous population centers across 23 states east of the Mississippi River, the District of Columbia, and extends into the Canadian provinces of Ontario and Quebec. Powering these operations, CSX owns and leases around 3,500 locomotives. Its rail lines also provide direct connections to various production and distribution facilities, enhancing supply chain efficiency. Established in 1978, CSX Corporation has its headquarters located in Jacksonville, Florida.
Financial Metrics — CSX PE Stock Valuation Data
PE Ratio (TTM)
28.6x
PEG Ratio
n/m
Earnings Yield
3.50%
ROE (TTM)
23.5%
Revenue/Share (TTM)
$7.61
Dividend Yield
1.15%
Debt/Equity
1.42x
Frequently Asked Questions
What is the PE ratio of CSX?
The trailing twelve-month PE ratio of CSX reflects how much investors pay per dollar of CSX Corporation's earnings. This metric is most useful when compared to Railroads peers and the company's own historical range.
Is CSX overvalued based on PE ratio?
CSX's PE of 28.6x combined with a PEG ratio of -8.04 provides a growth-adjusted perspective. CSX has negative earnings, so its PE and PEG ratios are not meaningful here and cannot tell you whether the stock is over or undervalued. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Railroads, a DCF analysis may be more appropriate.
How do I value CSX stock using PE ratio?
To value CSX Corporation using PE: (1) Compare the current PE (28.6x) against the Railroads median to assess relative pricing, (2) check the PEG ratio (-8.04) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CSX?
CSX's PEG ratio is -8.04, calculated by dividing the PE ratio (28.6x) by the expected earnings growth rate. Because CSX has negative earnings, its PEG ratio is not meaningful and should not be read as a sign of under or overvaluation. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CSX stock valuation?
PE ratio gives a quick relative read — how CSX is priced versus Railroads peers. DCF provides an absolute value based on projected free cash flows. For CSX, with a strong ROE of 23.5%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CSX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value CSX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-15. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.