Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
FedEx Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2026-05-31), 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).
An analysis of cash flow metrics from May 31, 2021, through May 31, 2026, reveals a divergence between the trends of operating cash flows and free cash flow to equity (FCFE).
- Operating Cash Flow Trends
- Cash provided by operating activities experienced a consistent decline from 2021 to 2025, falling from a peak of 10,135 million USD to a period low of 7,036 million USD. This represents a steady contraction in cash generation from core operations over five years, followed by a recovery to 8,925 million USD in 2026.
- Free Cash Flow to Equity (FCFE) Performance
- FCFE remained relatively stable with moderate volatility between 2021 and 2025, fluctuating between 2,145 million USD and 2,989 million USD. A sharp and significant increase is observed in 2026, where FCFE rose to 9,098 million USD, a substantial deviation from the preceding five-year average.
- Comparative Analysis and Divergence
- A critical decoupling occurred in the 2026 fiscal year. While operating cash flows recovered to 8,925 million USD, FCFE climbed to 9,098 million USD, surpassing the total cash provided by operating activities. This anomaly suggests that the surge in equity-available cash flow was not derived from operational efficiency but was instead driven by non-operating factors, such as significant net borrowing or the divestment of assets.
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Price to FCFE Ratio, Current
FedEx Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 236,581,188 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 9,098) |
| FCFE per share | 38.46 |
| Current share price (P) | 325.08 |
| Valuation Ratio | |
| P/FCFE | 8.45 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Uber Technologies Inc. | 15.01 |
| Union Pacific Corp. | 28.62 |
| United Airlines Holdings Inc. | — |
| United Parcel Service Inc. | 13.01 |
| P/FCFE, Sector | |
| Transportation | 21.73 |
| P/FCFE, Industry | |
| Industrials | 34.11 |
Based on: 10-K (reporting date: 2026-05-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
FedEx Corp., historical P/FCFE calculation, comparison to benchmarks
| May 31, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 236,581,188 | 235,899,098 | 244,302,246 | 251,187,242 | 259,845,660 | 267,348,232 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 9,098) | 2,824) | 2,989) | 2,522) | 2,908) | 2,145) | |
| FCFE per share3 | 38.46 | 11.97 | 12.23 | 10.04 | 11.19 | 8.02 | |
| Share price1, 4 | 306.22 | 225.73 | 305.02 | 254.73 | 217.98 | 294.82 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 7.96 | 18.86 | 24.93 | 25.37 | 19.48 | 36.75 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Uber Technologies Inc. | — | 13.57 | 24.73 | 50.60 | 333.68 | 139.66 | |
| Union Pacific Corp. | — | 24.71 | 32.74 | 36.37 | 13.19 | 17.16 | |
| United Airlines Holdings Inc. | — | — | — | — | — | 2.58 | |
| United Parcel Service Inc. | — | 14.32 | 18.82 | 17.24 | 21.80 | 22.62 | |
| P/FCFE, Sector | |||||||
| Transportation | — | 19.37 | 26.65 | 34.40 | 23.54 | 19.46 | |
| P/FCFE, Industry | |||||||
| Industrials | — | 32.04 | 30.92 | 23.85 | 25.07 | — | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 Data adjusted for splits and stock dividends.
3 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 9,098,000,000 ÷ 236,581,188 = 38.46
4 Closing price as at the filing date of FedEx Corp. Annual Report.
5 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 306.22 ÷ 38.46 = 7.96
6 Click competitor name to see calculations.
The analysis of the Price to Free Cash Flow to Equity (P/FCFE) ratio reveals a significant overall contraction in valuation multiples over the period from 2021 to 2026. The ratio transitioned from a peak of 36.75 to a period low of 7.96, indicating a fundamental shift in the relationship between market pricing and the cash available to shareholders.
- Share Price Volatility
- The share price exhibited substantial fluctuations, characterized by a decline in 2022, a recovery through 2024, a sharp correction in 2025, and a return to peak levels by 2026. These price swings served as a primary driver for the volatility observed in the valuation ratio.
- FCFE per Share Performance
- Free Cash Flow to Equity per share demonstrated a general upward trajectory, increasing from 8.02 in 2021 to 12.23 by 2024. A critical surge is observed in 2026, where FCFE per share increased more than threefold to 38.46, representing a substantial expansion in cash generation capacity.
- P/FCFE Ratio Dynamics
- The P/FCFE ratio experienced a sharp initial decline between 2021 and 2022, dropping from 36.75 to 19.48. Following this, the ratio remained relatively range-bound between 18.86 and 25.37 from 2022 to 2025. The most dramatic compression occurred in 2026, with the ratio falling to 7.96, driven by the disproportionate increase in FCFE per share relative to the share price recovery.
The convergence of a recovered share price and an exceptional increase in cash flow generation in the final period suggests a significant improvement in the company's efficiency in producing cash for equity holders. This has resulted in a significantly lower valuation multiple, suggesting that the company is generating substantially more cash per dollar of market capitalization in 2026 than in any previous year analyzed.
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