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 (reporting date: 2025-05-31), 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).
The analysis of the provided financial data reveals several notable trends in the company's profitability over the six-year period.
- Net Income
- The net income experienced significant growth from 2020 to 2021, increasing sharply from 1,286 million USD to 5,231 million USD. However, following this peak, net income displayed a declining trajectory through 2022 and 2023, with values decreasing to 3,826 million USD and 3,972 million USD, respectively. There was a moderate recovery in 2024, reaching 4,331 million USD, but the figure slightly decreased again in 2025 to 4,092 million USD. Overall, net income shows volatility after an initial strong surge.
- Earnings Before Tax (EBT)
- EBT follows a pattern similar to net income, with a sharp increase from 1,669 million USD in 2020 to a peak of 6,674 million USD in 2021. After this, there is a gradual decline, with values dropping to 4,896 million USD in 2022 and stabilizing somewhat around the mid-5,000 million USD range from 2023 to 2025. The data reflect moderate contraction in earnings before tax post-2021 peak but maintaining a higher level relative to the start of the period.
- Earnings Before Interest and Tax (EBIT)
- The EBIT trend mirrors the EBT and net income developments, with a significant rise from 2,341 million USD in 2020 to 7,467 million USD in 2021. Subsequently, EBIT declines to 5,585 million USD in 2022 but recovers slightly over the following years to 6,581 million USD in 2024 before dipping again to 6,230 million USD in 2025. This indicates operational earnings achieving peak performance in 2021, followed by some fluctuations and partial recoveries.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA exhibits a substantial increase from 5,956 million USD in 2020 to 11,260 million USD in 2021, marking the highest point across the timeline. Afterwards, there is a decrease to 9,555 million USD in 2022, followed by an increase up to 10,868 million USD in 2024. In 2025, EBITDA slightly declines to 10,494 million USD, remaining well above the initial 2020 value. This suggests the company maintained strong cash flow generation capability despite some volatility.
In summary, all key profitability metrics indicate a pronounced peak in 2021, followed by a period of relative decline and stabilization at levels higher than those at the start of the period. The initial surge in earnings may be attributed to extraordinary factors or operational improvements, with subsequent years showing adjustment and some volatility. EBITDA figures suggest that while earnings fluctuated, the underlying cash generation remained robust.
Enterprise Value to EBITDA Ratio, Current
FedEx Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 68,796) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 10,494) |
| Valuation Ratio | |
| EV/EBITDA | 6.56 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Uber Technologies Inc. | 37.24 |
| Union Pacific Corp. | 12.90 |
| United Airlines Holdings Inc. | 5.57 |
| United Parcel Service Inc. | 7.41 |
| EV/EBITDA, Sector | |
| Transportation | 11.47 |
| EV/EBITDA, Industry | |
| Industrials | 18.77 |
Based on: 10-K (reporting date: 2025-05-31).
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, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 68,327) | 88,219) | 77,708) | 70,008) | 92,612) | 60,117) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 10,494) | 10,868) | 10,233) | 9,555) | 11,260) | 5,956) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 6.51 | 8.12 | 7.59 | 7.33 | 8.22 | 10.09 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| Uber Technologies Inc. | — | 31.61 | 45.37 | — | 227.40 | — | |
| Union Pacific Corp. | — | 14.16 | 15.44 | 12.56 | 15.46 | 15.65 | |
| United Airlines Holdings Inc. | — | 5.22 | 4.11 | 6.23 | 21.49 | — | |
| United Parcel Service Inc. | — | 9.53 | 11.23 | 8.83 | 9.55 | 30.22 | |
| EV/EBITDA, Sector | |||||||
| Transportation | — | 12.05 | 13.12 | 13.09 | 12.72 | 50.43 | |
| EV/EBITDA, Industry | |||||||
| Industrials | — | 17.18 | 14.82 | 16.44 | 16.30 | 30.80 | |
Based on: 10-K (reporting date: 2025-05-31), 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).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 68,327 ÷ 10,494 = 6.51
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value shows a fluctuating trend over the examined period. It increased significantly from $60,117 million in May 2020 to a peak of $92,612 million in May 2021. Following this peak, EV declined sharply to $70,008 million in May 2022, before undergoing a moderate rise again to $77,708 million in May 2023 and further to $88,219 million in May 2024. The most recent data for May 2025 shows a decrease to $68,327 million, indicating some volatility in the company's market value and overall valuation over the years.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA increased substantially from $5,956 million in May 2020 to $11,260 million in May 2021, suggesting strong operational performance during this period. This was followed by a decline to $9,555 million in May 2022. From there, EBITDA showed a steady increase over the next two years, reaching $10,868 million in May 2024. The figure slightly decreased to $10,494 million in May 2025, indicating some stabilization but with minor fluctuations in earnings capability.
- EV/EBITDA Ratio
- The enterprise value to EBITDA ratio, which indicates valuation relative to earnings, decreased from 10.09 in May 2020 to 8.22 in May 2021. It continued to decline to 7.33 in May 2022, suggesting the company became relatively cheaper based on earnings. After fluctuating moderately with a slight increase to 8.12 in May 2024, the ratio again decreased significantly to 6.51 by May 2025. This downward trend points to a more attractive valuation in recent periods, potentially driven by either a lower enterprise value or sustained earnings performance.