Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
FedEx Corp., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
The financial trajectory of EBITDA demonstrates a period of volatility followed by a gradual recovery. After reaching 11,260 million US$ in 2021, a contraction occurred in 2022, with values dropping to 9,555 million US$. This was followed by a sustained upward trend through 2024, reaching 10,868 million US$, before a marginal decline in 2025 and a projected return toward previous highs of 11,132 million US$ by 2026.
- Operational Cash Flow Proxy Trends
- EBITDA exhibits a cyclical pattern, with a notable trough in 2022. The recovery observed between 2022 and 2024 suggests a stabilization of operational costs or an increase in revenue streams. The slight dip in 2025 indicates potential short-term operational headwinds, though the 2026 projection implies a return to robust operational profitability.
- Analysis of Non-Cash Charges
- A consistent gap between EBIT and EBITDA indicates significant non-cash expenses. The difference between these two metrics expanded from 3,793 million US$ in 2021 to a projected 4,369 million US$ in 2026. This steady increase suggests a growing asset base and continued capital expenditure requirements to maintain operational capacity.
- Profitability Conversion and Net Income Variance
- The substantial variance between EBITDA and Net Income underscores the impact of interest, taxes, and depreciation on the bottom line. While EBITDA shows a recovery toward 2021 levels by 2026, Net Income remains consistently lower and more volatile, reflecting the influence of non-operational costs and fiscal obligations on final profitability.
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Enterprise Value to EBITDA Ratio, Current
FedEx Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 85,128) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 11,132) |
| Valuation Ratio | |
| EV/EBITDA | 7.65 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Uber Technologies Inc. | 21.14 |
| Union Pacific Corp. | 15.75 |
| United Airlines Holdings Inc. | 6.20 |
| United Parcel Service Inc. | 8.96 |
| EV/EBITDA, Sector | |
| Transportation | 11.78 |
| EV/EBITDA, Industry | |
| Industrials | 18.99 |
Based on: 10-K (reporting date: 2026-05-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
FedEx Corp., historical EV/EBITDA calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 84,849) | 68,327) | 88,219) | 77,708) | 70,008) | 92,612) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 11,132) | 10,494) | 10,868) | 10,233) | 9,555) | 11,260) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 7.62 | 6.51 | 8.12 | 7.59 | 7.33 | 8.22 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Uber Technologies Inc. | — | 21.26 | 31.61 | 45.37 | — | 227.40 | |
| Union Pacific Corp. | — | 13.93 | 14.16 | 15.44 | 12.55 | 15.46 | |
| United Airlines Holdings Inc. | — | 5.72 | 5.22 | 4.11 | 6.23 | 21.49 | |
| United Parcel Service Inc. | — | 9.75 | 9.55 | 11.46 | 8.94 | 9.56 | |
| EV/EBITDA, Sector | |||||||
| Transportation | — | 11.05 | 12.06 | 13.18 | 13.14 | 12.73 | |
| EV/EBITDA, Industry | |||||||
| Industrials | — | 18.56 | 17.18 | 14.85 | 16.46 | 16.30 | |
Based on: 10-K (reporting date: 2026-05-31), 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31).
3 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= 84,849 ÷ 11,132 = 7.62
4 Click competitor name to see calculations.
The EV/EBITDA ratio exhibits a fluctuating trend over the analyzed period, reflecting volatility in enterprise value relative to a more stable operational earnings base. The ratio peaked at 8.22 in May 2021 and reached its lowest point of 6.51 in May 2025, suggesting periodic shifts in market valuation or capital structure changes.
- Enterprise Value (EV) Dynamics
- Enterprise value demonstrates significant instability, characterized by two major contractions. A sharp decrease occurred between May 2021 and May 2022, falling from 92,612 million to 70,008 million. Following a recovery phase through May 2024, another substantial decline is observed in May 2025, where the value dropped to 68,327 million before rebounding to 84,849 million by May 2026.
- EBITDA Performance
- Operational earnings remain relatively resilient compared to the volatility of the enterprise value. After an initial decline from 11,260 million in May 2021 to 9,555 million in May 2022, EBITDA followed a consistent upward trajectory, reaching 10,868 million in May 2024. A minor contraction occurred in May 2025, followed by a return to growth in May 2026, ending at 11,132 million.
- EV/EBITDA Ratio Analysis
- The valuation multiple is primarily driven by fluctuations in enterprise value rather than operational performance. The ratio declined to 7.33 in May 2022, recovered to 8.12 by May 2024, and experienced a sharp compression to 6.51 in May 2025. The subsequent rise to 7.62 in May 2026 indicates a normalization of the multiple as enterprise value recovered while EBITDA remained steady.
Overall, the data suggests a period of valuation instability. The convergence of a declining enterprise value and steady EBITDA in May 2025 resulted in the lowest valuation multiple of the period, while the subsequent recovery in May 2026 aligns the ratio more closely with the historical average observed between 2021 and 2024.
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