Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

FedEx Corp., EBITDA calculation

US$ in millions

12 months ended	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014
Net income	540	4,572	2,997	1,820	1,050	2,097
Add: Income tax expense	115	(219)	1,582	920	577	1,192
Earnings before tax (EBT)	655	4,353	4,579	2,740	1,627	3,289
Add: Interest expense	588	558	512	336	235	160
Earnings before interest and tax (EBIT)	1,243	4,911	5,091	3,076	1,862	3,449
Add: Depreciation and amortization	3,353	3,095	2,995	2,631	2,611	2,587
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,596	8,006	8,086	5,707	4,473	6,036

Based on: 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14), 10-K (filing date: 2014-07-14).

Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	FedEx Corp.’s EBITDA decreased from 2017 to 2018 and from 2018 to 2019.

FedEx Corp., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	58,284
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,596
Valuation Ratio
EV/EBITDA	12.68
Benchmarks
EV/EBITDA, Competitors¹
CSX Corp.	11.19
Union Pacific Corp.	13.22
United Parcel Service Inc.	13.37
EV/EBITDA, Sector
Industrial Transportation	11.42
EV/EBITDA, Industry
Industrials	16.06

Based on: 10-K (filing date: 2019-07-16).

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.

FedEx Corp., historical EV/EBITDA calculation, comparison to benchmarks

	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	59,545	74,531	68,766	53,019	51,868	44,948
Earnings before interest, tax, depreciation and amortization (EBITDA)²	4,596	8,006	8,086	5,707	4,473	6,036
Valuation Ratio
EV/EBITDA³	12.96	9.31	8.50	9.29	11.60	7.45
Benchmarks
EV/EBITDA, Competitors⁴
CSX Corp.	—	11.03	11.67	11.85	6.65	9.37
Union Pacific Corp.	—	12.78	10.98	10.74	7.42	10.85
United Parcel Service Inc.	—	12.89	11.18	13.60	9.83	14.37
EV/EBITDA, Sector
Industrial Transportation	—	11.67	10.54	11.43	8.73	10.74
EV/EBITDA, Industry
Industrials	—	15.02	15.26	13.29	11.89	11.61

Based on: 10-K (filing date: 2019-07-16), 10-K (filing date: 2018-07-16), 10-K (filing date: 2017-07-17), 10-K (filing date: 2016-07-18), 10-K (filing date: 2015-07-14), 10-K (filing date: 2014-07-14).

¹ See details »

² See details »

³ 2019 Calculation
EV/EBITDA = EV ÷ EBITDA
= 59,545 ÷ 4,596 = 12.96

⁴ Click competitor name to see calculations.

Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	FedEx Corp.’s EV/EBITDA ratio increased from 2017 to 2018 and from 2018 to 2019.

FedEx Corp. (FDX)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical