Microsoft Excel LibreOffice Calc

FedEx Corp. (FDX)


Common Stock Valuation Ratios (Price Multiples)

Difficulty: Beginner


Current Valuation Ratios

FedEx Corp., current price multiples

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FedEx Corp. CSX Corp. Union Pacific Corp. United Parcel Service Inc. Industrial Transportation Industrials
Selected Financial Data
Current share price (P) $145.54
No. shares of common stock outstanding 260,910,309
Growth rate (g) 11.88%
 
Earnings per share (EPS) $2.07
Next year expected EPS $2.32
Operating profit per share $17.12
Sales per share $267.11
Book value per share (BVPS) $68.06
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 70.32 16.66 19.06 20.79 16.44 28.68
Price to next year expected earnings 62.85 14.17 16.01 9.37 13.88 26.22
Price-earnings-growth (PEG) 5.92 0.95 1.00 0.17 0.89 3.05
Price to operating profit (P/OP) 8.50 11.32 13.35 14.18 12.12 14.07
Price to sales (P/S) 0.54 4.50 4.98 1.39 1.78 1.98
Price to book value (P/BV) 2.14 4.39 5.57 32.98 5.53 6.48

Based on: 10-K (filing date: 2019-07-16).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

FedEx Corp., historical price multiples

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May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
Price to earnings (P/E) 82.00 13.39 19.29 23.45 46.06 20.56
Price to operating profit (P/OP) 9.92 12.57 11.48 13.87 25.90 12.51
Price to sales (P/S) 0.64 0.94 0.96 0.85 1.02 0.95
Price to book value (P/BV) 2.49 3.15 3.60 3.10 3.23 2.82

Based on: 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), 10-K (filing date: 2014-07-14).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. FedEx Corp.’s P/E ratio declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. FedEx Corp.’s P/OP ratio increased from 2017 to 2018 but then declined significantly from 2018 to 2019.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. FedEx Corp.’s P/S ratio declined from 2017 to 2018 and from 2018 to 2019.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. FedEx Corp.’s P/BV ratio declined from 2017 to 2018 and from 2018 to 2019.

Price to Earnings (P/E)

FedEx Corp., historical P/E calculation, comparison to benchmarks

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May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 260,808,410 265,924,840 268,257,434 265,524,323 282,430,208 285,423,144
Selected Financial Data (US$)
Net income (in millions) 540  4,572  2,997  1,820  1,050  2,097 
Earnings per share (EPS)2 2.07 17.19 11.17 6.85 3.72 7.35
Share price1, 3 169.79 230.18 215.48 160.76 171.24 151.07
Valuation Ratio
P/E ratio4 82.00 13.39 19.29 23.45 46.06 20.56
Benchmarks
P/E Ratio, Competitors5
CSX Corp. 16.78 8.59 25.94 11.81 18.47
Union Pacific Corp. 19.60 9.26 20.86 13.31 20.72
United Parcel Service Inc. 20.07 18.37 27.32 17.84 30.28
P/E Ratio, Sector
Industrial Transportation 17.69 12.21 24.04 17.53 22.71
P/E Ratio, Industry
Industrials 28.09 28.48 22.75 23.39 18.71

Based on: 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), 10-K (filing date: 2014-07-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 540,000,000 ÷ 260,808,410 = 2.07

3 Closing price as at the filing date of FedEx Corp.’s Annual Report.

4 2019 Calculation
P/E ratio = Share price ÷ EPS
= 169.79 ÷ 2.07 = 82.00

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. FedEx Corp.’s P/E ratio declined from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Price to Operating Profit (P/OP)

FedEx Corp., historical P/OP calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 260,808,410 265,924,840 268,257,434 265,524,323 282,430,208 285,423,144
Selected Financial Data (US$)
Operating income (in millions) 4,466  4,870  5,037  3,077  1,867  3,446 
Operating profit per share2 17.12 18.31 18.78 11.59 6.61 12.07
Share price1, 3 169.79 230.18 215.48 160.76 171.24 151.07
Valuation Ratio
P/OP ratio4 9.92 12.57 11.48 13.87 25.90 12.51
Benchmarks
P/OP Ratio, Competitors5
CSX Corp. 11.41 12.82 13.12 6.48 9.85
Union Pacific Corp. 13.73 12.30 12.14 7.89 12.26
United Parcel Service Inc. 13.69 11.98 17.14 11.27 18.48
P/OP Ratio, Sector
Industrial Transportation 13.05 12.11 14.02 10.46 13.37
P/OP Ratio, Industry
Industrials 13.78 15.57 15.55 12.60 11.54

Based on: 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), 10-K (filing date: 2014-07-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 4,466,000,000 ÷ 260,808,410 = 17.12

3 Closing price as at the filing date of FedEx Corp.’s Annual Report.

4 2019 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 169.79 ÷ 17.12 = 9.92

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. FedEx Corp.’s P/OP ratio increased from 2017 to 2018 but then declined significantly from 2018 to 2019.

Price to Sales (P/S)

FedEx Corp., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 260,808,410 265,924,840 268,257,434 265,524,323 282,430,208 285,423,144
Selected Financial Data (US$)
Revenues (in millions) 69,693  65,450  60,319  50,365  47,453  45,567 
Sales per share2 267.22 246.12 224.85 189.68 168.02 159.65
Share price1, 3 169.79 230.18 215.48 160.76 171.24 151.07
Valuation Ratio
P/S ratio4 0.64 0.94 0.96 0.85 1.02 0.95
Benchmarks
P/S Ratio, Competitors5
CSX Corp. 4.53 4.12 4.02 1.97 2.81
Union Pacific Corp. 5.12 4.67 4.43 2.91 4.48
United Parcel Service Inc. 1.34 1.37 1.54 1.48 1.58
P/S Ratio, Sector
Industrial Transportation 1.91 1.85 1.89 1.59 1.98
P/S Ratio, Industry
Industrials 1.94 2.13 1.99 1.72 1.85

Based on: 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), 10-K (filing date: 2014-07-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 69,693,000,000 ÷ 260,808,410 = 267.22

3 Closing price as at the filing date of FedEx Corp.’s Annual Report.

4 2019 Calculation
P/S ratio = Share price ÷ Sales per share
= 169.79 ÷ 267.22 = 0.64

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. FedEx Corp.’s P/S ratio declined from 2017 to 2018 and from 2018 to 2019.

Price to Book Value (P/BV)

FedEx Corp., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015 May 31, 2014
No. shares of common stock outstanding1 260,808,410 265,924,840 268,257,434 265,524,323 282,430,208 285,423,144
Selected Financial Data (US$)
Common stockholders’ investment (in millions) 17,757  19,416  16,073  13,784  14,993  15,277 
Book value per share (BVPS)2 68.08 73.01 59.92 51.91 53.09 53.52
Share price1, 3 169.79 230.18 215.48 160.76 171.24 151.07
Valuation Ratio
P/BV ratio4 2.49 3.15 3.60 3.10 3.23 2.82
Benchmarks
P/BV Ratio, Competitors5
CSX Corp. 4.42 3.20 3.81 1.99 3.19
Union Pacific Corp. 5.72 3.99 4.43 3.07 5.07
United Parcel Service Inc. 31.82 90.21 231.41 34.99 42.88
P/BV Ratio, Sector
Industrial Transportation 5.95 5.19 5.88 4.45 5.58
P/BV Ratio, Industry
Industrials 6.35 6.01 5.41 4.16 3.99

Based on: 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), 10-K (filing date: 2014-07-14).

1 Data adjusted for splits and stock dividends.

2 2019 Calculation
BVPS = Common stockholders’ investment ÷ No. shares of common stock outstanding
= 17,757,000,000 ÷ 260,808,410 = 68.08

3 Closing price as at the filing date of FedEx Corp.’s Annual Report.

4 2019 Calculation
P/BV ratio = Share price ÷ BVPS
= 169.79 ÷ 68.08 = 2.49

5 Click competitor name to see calculations.

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. FedEx Corp.’s P/BV ratio declined from 2017 to 2018 and from 2018 to 2019.