Stock Analysis on Net

FedEx Corp. (NYSE:FDX)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

FedEx Corp., FCFF calculation

US$ in millions

Microsoft Excel
12 months ended: May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Net income 4,331 3,972 3,826 5,231 1,286 540
Net noncash charges 7,412 8,016 9,125 6,776 7,903 7,564
Changes in assets and liabilities (3,431) (3,140) (3,119) (1,872) (4,092) (2,491)
Cash provided by operating activities 8,312 8,848 9,832 10,135 5,097 5,613
Cash payments for interest, net of capitalized interest, net of tax1 552 514 543 642 492 508
Capitalized interest, net of tax2 60 57 48 53 42 53
Capital expenditures (5,176) (6,174) (6,763) (5,884) (5,868) (5,490)
Free cash flow to the firm (FCFF) 3,748 3,245 3,660 4,946 (237) 684

Based on: 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), 10-K (reporting date: 2019-05-31).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the FedEx Corp. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. FedEx Corp. FCFF decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Interest Paid, Net of Tax

FedEx Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel
12 months ended: May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Effective Income Tax Rate (EITR)
EITR1 25.80% 25.90% 21.90% 21.60% 23.00% 17.60%
Interest Paid, Net of Tax
Cash payments for interest, net of capitalized interest, before tax 744 694 695 819 639 617
Less: Cash payments for interest, net of capitalized interest, tax2 192 180 152 177 147 109
Cash payments for interest, net of capitalized interest, net of tax 552 514 543 642 492 508
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax 81 77 62 68 54 64
Less: Capitalized interest, tax3 21 20 14 15 12 11
Capitalized interest, net of tax 60 57 48 53 42 53

Based on: 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), 10-K (reporting date: 2019-05-31).

1 See details »

2 2024 Calculation
Cash payments for interest, net of capitalized interest, tax = Cash payments for interest, net of capitalized interest × EITR
= 744 × 25.80% = 192

3 2024 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 81 × 25.80% = 21


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel
Selected Financial Data (US$ in millions)
Enterprise value (EV) 81,946
Free cash flow to the firm (FCFF) 3,748
Valuation Ratio
EV/FCFF 21.86
Benchmarks
EV/FCFF, Competitors1
Uber Technologies Inc. 38.02
Union Pacific Corp. 30.45
United Parcel Service Inc. 22.07
EV/FCFF, Sector
Transportation 28.50
EV/FCFF, Industry
Industrials 26.94

Based on: 10-K (reporting date: 2024-05-31).

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.


Enterprise Value to FCFF Ratio, Historical

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

Microsoft Excel
May 31, 2024 May 31, 2023 May 31, 2022 May 31, 2021 May 31, 2020 May 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 88,219 77,708 70,008 92,612 60,117 59,545
Free cash flow to the firm (FCFF)2 3,748 3,245 3,660 4,946 (237) 684
Valuation Ratio
EV/FCFF3 23.54 23.94 19.13 18.72 87.04
Benchmarks
EV/FCFF, Competitors4
Uber Technologies Inc. 46.69 136.28
Union Pacific Corp. 31.90 23.83 26.42 25.20 25.44
United Parcel Service Inc. 24.78 16.63 16.95 28.23 39.28
EV/FCFF, Sector
Transportation 31.32 22.96 23.87 65.92 104.98
EV/FCFF, Industry
Industrials 25.67 24.88 28.41 72.49 31.28

Based on: 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), 10-K (reporting date: 2019-05-31).

1 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 88,219 ÷ 3,748 = 23.54

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. FedEx Corp. EV/FCFF ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.