FedEx Corp., FCFF calculation

US$ in millions

12 months ended:	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Net income	3,972)	3,826)	5,231)	1,286)	540)	4,572)
Net noncash charges	8,016)	9,125)	6,776)	7,903)	7,564)	3,562)
Changes in assets and liabilities	(3,140)	(3,119)	(1,872)	(4,092)	(2,491)	(3,460)
Cash provided by operating activities	8,848)	9,832)	10,135)	5,097)	5,613)	4,674)
Cash payments for interest, net of capitalized interest, net of tax¹	514)	543)	642)	492)	442)	387)
Capitalized interest, net of tax²	57)	48)	53)	42)	46)	45)
Capital expenditures	(6,174)	(6,763)	(5,884)	(5,868)	(5,490)	(5,663)
Free cash flow to the firm (FCFF)	3,245)	3,660)	4,946)	(237)	611)	(557)

Based on: 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), 10-K (reporting date: 2018-05-31).

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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 2021 to 2022 and from 2022 to 2023.

FedEx Corp., interest paid, net of tax calculation

US$ in millions

12 months ended:	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Effective Income Tax Rate (EITR)
EITR¹	25.90%	21.90%	21.60%	23.00%	28.40%	26.10%
Interest Paid, Net of Tax
Cash payments for interest, net of capitalized interest, before tax	694)	695)	819)	639)	617)	524)
Less: Cash payments for interest, net of capitalized interest, tax²	180)	152)	177)	147)	175)	137)
Cash payments for interest, net of capitalized interest, net of tax	514)	543)	642)	492)	442)	387)
Interest Costs Capitalized, Net of Tax
Capitalized interest, before tax	77)	62)	68)	54)	64)	61)
Less: Capitalized interest, tax³	20)	14)	15)	12)	18)	16)
Capitalized interest, net of tax	57)	48)	53)	42)	46)	45)

Based on: 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), 10-K (reporting date: 2018-05-31).

¹ See details »

² 2023 Calculation
Cash payments for interest, net of capitalized interest, tax = Cash payments for interest, net of capitalized interest × EITR
= 694 × 25.90% = 180

³ 2023 Calculation
Capitalized interest, tax = Capitalized interest × EITR
= 77 × 25.90% = 20

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

Selected Financial Data (US$ in millions)
Enterprise value (EV)	79,141)
Free cash flow to the firm (FCFF)	3,245)
Valuation Ratio
EV/FCFF	24.39
Benchmarks
EV/FCFF, Competitors¹
Uber Technologies Inc.	39.79
Union Pacific Corp.	31.21
United Parcel Service Inc.	24.63
EV/FCFF, Sector
Transportation	29.74
EV/FCFF, Industry
Industrials	25.42

Based on: 10-K (reporting date: 2023-05-31).

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.

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

	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019	May 31, 2018
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	77,708)	70,008)	92,612)	60,117)	59,545)	74,531)
Free cash flow to the firm (FCFF)²	3,245)	3,660)	4,946)	(237)	611)	(557)
Valuation Ratio
EV/FCFF³	23.94	19.13	18.72	—	97.52	—
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	25.15	25.09	28.18	65.99	30.06	—

Based on: 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), 10-K (reporting date: 2018-05-31).

¹ See details »

² See details »

³ 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 77,708 ÷ 3,245 = 23.94

⁴ Click competitor name to see calculations.

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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 2021 to 2022 and from 2022 to 2023.

FedEx Corp. (NYSE:FDX)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical