Microsoft Excel LibreOffice Calc

FedEx Corp. (FDX)

Enterprise Value to EBITDA (EV/EBITDA)

Difficulty: Intermediate

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

FedEx Corp., EBITDA calculation

USD $ in millions

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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 declined from 2017 to 2018 and from 2018 to 2019.

Enterprise Value to EBITDA Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (USD $ in millions)
Enterprise value (EV) 56,551 
Earnings before interest, tax, depreciation and amortization (EBITDA) 4,596 
Ratio
EV/EBITDA 12.30
Benchmarks
EV/EBITDA, Competitors1
CSX Corp. 10.48
Union Pacific Corp. 12.96
United Parcel Service Inc. 13.36
EV/EBITDA, Sector
Industrial Transportation 11.16
EV/EBITDA, Industry
Industrials 15.10

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

1 Click competitor name to see calculations.

If company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.

Otherwise, if 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

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Selected Financial Data (USD $ 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 
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.

Ratio Description The company
EV/EBITDA EV/EBITDA 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.