Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

FedEx Corp. (NYSE:FDX)

Enterprise Value to EBITDA (EV/EBITDA)

Intermediate level

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

FedEx Corp., EBITDA calculation

US$ in millions

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12 months ended: May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Net income 1,286  540  4,572  2,997  1,820  1,050 
Add: Income tax expense 383  115  (219) 1,582  920  577 
Earnings before tax (EBT) 1,669  655  4,353  4,579  2,740  1,627 
Add: Interest expense 672  588  558  512  336  235 
Earnings before interest and tax (EBIT) 2,341  1,243  4,911  5,091  3,076  1,862 
Add: Depreciation and amortization 3,615  3,353  3,095  2,995  2,631  2,611 
Earnings before interest, tax, depreciation and amortization (EBITDA) 5,956  4,596  8,006  8,086  5,707  4,473 

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

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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

Microsoft Excel LibreOffice Calc
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).

1 See details »

2 See details »

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.