Valuation Paradox | Despite premium operational margins and strong service metrics, Union Pacific trades at a discount to peers, creating an attractive entry point |
Analyst Outlook | Price targets range from $275 to $285, with multiple upgrades to Outperform and Overweight reflecting confidence in execution and merger potential |
Volume Pressures | The railroad confronts 6% volume decline across intermodal, grain, automotive, and petroleum sectors while maintaining operational excellence |
Merger Momentum | Union Pacific pursues transformative Norfolk Southern merger promising synergy-driven growth over three to four years despite regulatory hurdles |

Metrics to compare | UNP | Sector Sector - Average of metrics from a broad group of related Industrials sector companies | Relationship RelationshipUNPPeersSector | |
|---|---|---|---|---|
P/E Ratio | 23.7x | 16.5x | 12.2x | |
PEG Ratio | 3.25 | 4.77 | 0.03 | |
Price / Book | 8.4x | 2.1x | 1.4x | |
Price / LTM Sales | 6.8x | 1.1x | 1.2x | |
Upside (Analyst Target) | 15.0% | 5.6% | 25.2% | |
Fair Value Upside | Unlock | −4.5% | 7.0% | Unlock |
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. The company was founded in 1862 and is headquartered in Omaha, Nebraska.