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 (filing date: 2020-07-20), 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).
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 2018 to 2019 but then slightly increased from 2019 to 2020. |
Enterprise Value to EBITDA Ratio, Current
FedEx Corp., current EV/EBITDA calculation, comparison to benchmarks
Selected Financial Data (US$ in millions) | |
Enterprise value (EV) | 86,594 |
Earnings before interest, tax, depreciation and amortization (EBITDA) | 5,956 |
Valuation Ratio | |
EV/EBITDA | 14.54 |
Benchmarks | |
EV/EBITDA, Competitors1 | |
CSX Corp. | 14.65 |
Norfolk Southern Corp. | 17.76 |
Union Pacific Corp. | 15.98 |
United Parcel Service Inc. | 30.20 |
EV/EBITDA, Sector | |
Industrial Transportation | 15.89 |
EV/EBITDA, Industry | |
Industrials | 16.54 |
Based on: 10-K (filing date: 2020-07-20).
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, 2020 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | May 31, 2015 | ||
---|---|---|---|---|---|---|---|
Selected Financial Data (US$ in millions) | |||||||
Enterprise value (EV)1 | 60,117 | 59,545 | 74,531 | 68,766 | 53,019 | 51,868 | |
Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 5,956 | 4,596 | 8,006 | 8,086 | 5,707 | 4,473 | |
Valuation Ratio | |||||||
EV/EBITDA3 | 10.09 | 12.96 | 9.31 | 8.50 | 9.29 | 11.60 | |
Benchmarks | |||||||
EV/EBITDA, Competitors4 | |||||||
CSX Corp. | 14.02 | 11.84 | 11.03 | 11.67 | 11.85 | — | |
Norfolk Southern Corp. | 17.04 | 12.70 | 11.04 | 10.24 | 10.56 | — | |
Union Pacific Corp. | 15.65 | 13.73 | 12.78 | 10.98 | 10.74 | — | |
United Parcel Service Inc. | 30.22 | 12.80 | 12.89 | 11.18 | 13.60 | — | |
EV/EBITDA, Sector | |||||||
Industrial Transportation | — | 12.92 | 11.58 | 10.51 | 11.31 | — | |
EV/EBITDA, Industry | |||||||
Industrials | — | 15.50 | 15.28 | 15.38 | 13.51 | — |
Based on: 10-K (filing date: 2020-07-20), 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).
3 2020 Calculation
EV/EBITDA = EV ÷ EBITDA
= 60,117 ÷ 5,956 = 10.09
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 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level. |