FedEx Corp., FCFF calculation

US$ in millions

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
Net noncash charges	7,903	7,564	3,562	4,135	4,425	4,753
Changes in assets and liabilities	(4,092)	(2,491)	(3,460)	(2,202)	(537)	(437)
Cash provided by operating activities	5,097	5,613	4,674	4,930	5,708	5,366
Cash payments for interest, net of capitalized interest, net of tax¹	492	442	387	317	213	130
Capitalized interest, net of tax²	42	46	45	27	28	24
Capital expenditures	(5,868)	(5,490)	(5,663)	(5,116)	(4,818)	(4,347)
Free cash flow to the firm (FCFF)	(237)	611	(557)	157	1,131	1,173

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, 2} See details »

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the FedEx Corp.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	FedEx Corp.’s FCFF increased from 2018 to 2019 but then slightly decreased from 2019 to 2020 not reaching 2018 level.

FedEx Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	May 31, 2020	May 31, 2019	May 31, 2018	May 31, 2017	May 31, 2016	May 31, 2015
Effective Income Tax Rate (EITR)
EITR¹	23.00%	28.40%	26.10%	34.60%	33.60%	35.50%
Interest Paid, Net of Tax
Cash payments for interest, net of capitalized interest, before tax	639	617	524	484	321	201
Less: Cash payments for interest, net of capitalized interest, tax²	147	175	137	167	108	71
Cash payments for interest, net of capitalized interest, net of tax	492	442	387	317	213	130
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	54	64	61	41	42	37
Less: Capitalized interest, tax³	12	18	16	14	14	13
Capitalized interest, net of tax	42	46	45	27	28	24

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 2020 Calculation
Cash payments for interest, net of capitalized interest, tax = Cash payments for interest, net of capitalized interest × EITR
= 639 × 23.00% = 147

³ 2020 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 54 × 23.00% = 12

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	83,262
Free cash flow to the firm (FCFF)	(237)
Valuation Ratio
EV/FCFF	—
Benchmarks
EV/FCFF, Competitors¹
CSX Corp.	21.29
Norfolk Southern Corp.	27.85
Union Pacific Corp.	28.15
United Parcel Service Inc.	53.51
EV/FCFF, Sector
Industrial Transportation	34.79
EV/FCFF, Industry
Industrials	25.67

Based on: 10-K (filing date: 2020-07-20).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

FedEx Corp., historical EV/FCFF 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
Free cash flow to the firm (FCFF)²	(237)	611	(557)	157	1,131	1,173
Valuation Ratio
EV/FCFF³	—	97.52	—	437.03	46.88	44.24
Benchmarks
EV/FCFF, Competitors⁴
CSX Corp.	—	18.95	18.77	31.12	45.00	24.83
Norfolk Southern Corp.	—	24.65	23.87	23.22	26.87	33.41
Union Pacific Corp.	—	25.13	23.55	25.20	22.39	23.12
United Parcel Service Inc.	—	38.39	16.23	—	27.31	18.08
EV/FCFF, Sector
Industrial Transportation	—	28.54	24.38	60.02	28.95	23.89
EV/FCFF, Industry
Industrials	—	24.74	23.00	24.91	23.42	20.18