Enterprise Value to EBITDA (EV/EBITDA)
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Reportable Segments
- Enterprise Value (EV)
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Return on Assets (ROA) since 2005
- Price to Book Value (P/BV) since 2005
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
FedEx Corp., EBITDA calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
- Net Income
- The net income demonstrates significant variability over the observed period. Starting at $540 million in 2019, it surged to $1,286 million in 2020, followed by a dramatic increase to $5,231 million in 2021. However, there is a notable decline to $3,826 million in 2022, after which net income modestly recovers to $3,972 million in 2023 and further increases to $4,331 million in 2024. The data suggests a peak in profitability in 2021, followed by a partial correction and gradual recovery thereafter.
- Earnings Before Tax (EBT)
- The earnings before tax exhibit a similar trajectory to net income. Initiating at $655 million in 2019, it rises substantially to $1,669 million in 2020 and reaches a maximum of $6,674 million in 2021. Subsequently, EBT decreases to $4,896 million in 2022 but then improves incrementally to $5,363 million in 2023 and $5,836 million in 2024. This pattern indicates a peak year in 2021 with a following reduction and a trend towards recovery.
- Earnings Before Interest and Tax (EBIT)
- The EBIT figures follow a consistent pattern with EBT, starting at $1,243 million in 2019 and almost doubling to $2,341 million in 2020. There is a substantial increase to $7,467 million in 2021. Post-2021, EBIT declines to $5,585 million in 2022, then increases again to $6,057 million in 2023 and to $6,581 million in 2024. The fluctuations reflect changes in operating profitability, peaking in 2021 with a subsequent decline and partial recovery.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA shows strong growth over the six-year span, beginning at $4,596 million in 2019 and increasing steadily to $5,956 million in 2020. It then reaches a peak of $11,260 million in 2021, followed by a decrease to $9,555 million in 2022. The subsequent years demonstrate a rising trend, with EBITDA values of $10,233 million in 2023 and $10,868 million in 2024. This trend underlines robust operational cash flow generation capacity, despite some volatility around 2021-2022.
Enterprise Value to EBITDA Ratio, Current
FedEx Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Uber Technologies Inc. | |
| Union Pacific Corp. | |
| United Airlines Holdings Inc. | |
| United Parcel Service Inc. | |
| EV/EBITDA, Sector | |
| Transportation | |
| EV/EBITDA, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2024-05-31).
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, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Uber Technologies Inc. | |||||||
| Union Pacific Corp. | |||||||
| United Airlines Holdings Inc. | |||||||
| United Parcel Service Inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Transportation | |||||||
| EV/EBITDA, Industry | |||||||
| Industrials | |||||||
Based on: 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), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).
3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value exhibited fluctuations over the observed periods. Initially, it remained relatively stable between 2019 and 2020, with a slight increase from 59,545 million to 60,117 million US dollars. A significant surge occurred in 2021, reaching 92,612 million, followed by a decline in 2022 to 70,008 million. Subsequently, the value increased again in 2023 and 2024, attaining 77,708 million and 88,219 million respectively. This pattern suggests responsiveness to market or business changes, with a notable peak in 2021 before experiencing partial correction and growth resumption.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA demonstrated a marked upward trend from 2019 to 2021, rising sharply from 4,596 million to 11,260 million US dollars, which more than doubled in this two-year span. This peak was followed by a decrease in 2022, dropping to 9,555 million, then a gradual recovery in the subsequent years, with EBITDA reaching 10,233 million in 2023 and 10,868 million in 2024. The initial growth suggests improved operational performance or margin expansion, while the subsequent dip may reflect operational challenges or external pressures, followed by signs of stabilization and growth.
- EV/EBITDA Ratio
- The EV/EBITDA ratio consistently declined from 12.96 in 2019 to a low of 7.33 in 2022, indicating that the enterprise value grew at a slower pace relative to EBITDA or that EBITDA increased substantially compared to enterprise value during this timeframe. Post-2022, the ratio showed a slight upward movement, rising to 7.59 in 2023 and further to 8.12 in 2024. This movement may point to a recalibration of market valuation multiples, reflecting changes in investor sentiment, expectations of future earnings, or adjustments in the company's capital structure.
- Overall Interpretation
- The data reveals cyclical patterns in value and earnings metrics, characterized by a significant rise in EBITDA and enterprise value up to 2021, followed by a correction phase in 2022 and a moderate rebound thereafter. The reduction in the EV/EBITDA multiple over the period implies improved earnings relative to company valuation until 2022, with a slight re-inflation of the multiple in the latest years. These trends suggest fluctuating but generally improving operational results, with market valuations adjusting dynamically to these earnings developments.