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

FedEx Corp. (NYSE:FDX)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

FedEx Corp., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
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).

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.

Interest Paid, Net of Tax

FedEx Corp., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
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


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 82,815 
Free cash flow to the firm (FCFF) (237)
Valuation Ratio
EV/FCFF
Benchmarks
EV/FCFF, Competitors1
CSX Corp. 18.51
Norfolk Southern Corp. 25.05
Union Pacific Corp. 26.40
United Parcel Service Inc. 56.40
EV/FCFF, Sector
Industrial Transportation 33.48
EV/FCFF, Industry
Industrials 22.87

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.


Enterprise Value to FCFF Ratio, Historical

FedEx Corp., historical EV/FCFF 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 
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 24.78 22.96 24.64 23.68 20.14

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/FCFF = EV ÷ FCFF
= 60,117 ÷ -237 =

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.