Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
United Parcel Service Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The information presents a review of net cash from operating activities and free cash flow to equity (FCFE) over a five-year period. A general decline in net cash from operating activities is apparent, while FCFE exhibits more fluctuation.
- Net Cash from Operating Activities
- Net cash from operating activities decreased consistently from US$15,007 million in 2021 to US$8,450 million in 2025. This represents a substantial reduction over the period, indicating a weakening in the company’s ability to generate cash from its core business operations. The largest single-year decrease occurred between 2022 and 2023, falling from US$14,104 million to US$10,238 million.
- Free Cash Flow to Equity (FCFE)
- FCFE began at US$8,040 million in 2021, decreased to US$7,031 million in 2022, and then increased to US$7,352 million in 2023. A significant decline was then observed in 2024, with FCFE falling to US$5,239 million. A subsequent recovery occurred in 2025, bringing FCFE to US$6,849 million. While fluctuating, the 2025 value remains below the initial 2021 level. The pattern suggests sensitivity to operational cash flow, but also potential impacts from financing or other non-operating activities.
The divergence between the trends in operating cash flow and FCFE suggests that factors beyond core operations are influencing the cash available to equity holders. Further investigation into the company’s capital structure and investment decisions would be necessary to fully understand the drivers of these trends.
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Price to FCFE Ratio, Current
United Parcel Service Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 849,101,714 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 6,849) |
| FCFE per share | 8.07 |
| Current share price (P) | 95.86 |
| Valuation Ratio | |
| P/FCFE | 11.88 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| FedEx Corp. | 30.32 |
| Uber Technologies Inc. | 14.33 |
| Union Pacific Corp. | 22.98 |
| United Airlines Holdings Inc. | — |
| P/FCFE, Sector | |
| Transportation | 19.65 |
| P/FCFE, Industry | |
| Industrials | 30.48 |
Based on: 10-K (reporting date: 2025-12-31).
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
United Parcel Service Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 849,101,714 | 854,171,950 | 852,653,061 | 858,740,988 | 870,391,403 | |
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | 6,849) | 5,239) | 7,352) | 7,031) | 8,040) | |
| FCFE per share3 | 8.07 | 6.13 | 8.62 | 8.19 | 9.24 | |
| Share price1, 4 | 115.51 | 115.42 | 148.64 | 178.46 | 208.97 | |
| Valuation Ratio | ||||||
| P/FCFE5 | 14.32 | 18.82 | 17.24 | 21.80 | 22.62 | |
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| FedEx Corp. | 18.86 | 24.93 | 25.37 | 19.48 | 36.75 | |
| 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 | |
| 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: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,849,000,000 ÷ 849,101,714 = 8.07
4 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= 115.51 ÷ 8.07 = 14.32
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibited a fluctuating pattern over the five-year period. Initially, the share price decreased significantly while FCFE per share remained relatively stable, leading to changes in the P/FCFE ratio.
- Share Price
- The share price demonstrated a consistent decline from $208.97 in 2021 to $115.42 in 2024. A slight increase to $115.51 was observed in 2025, but remained substantially lower than the initial value.
- FCFE per Share
- FCFE per share experienced a minor decrease from $9.24 in 2021 to $8.19 in 2022, followed by a slight recovery to $8.62 in 2023. A more noticeable decrease to $6.13 occurred in 2024, before partially recovering to $8.07 in 2025.
- P/FCFE Ratio
- The P/FCFE ratio began at 22.62 in 2021 and decreased to 17.24 in 2023. An increase to 18.82 was noted in 2024, before declining to 14.32 in 2025. This suggests that the market valuation relative to the free cash flow available to equity holders has generally decreased over the period, with some year-to-year volatility. The most significant decline in the ratio occurred between 2021 and 2023, and again between 2024 and 2025.
The interplay between the declining share price and the fluctuating FCFE per share resulted in a generally decreasing P/FCFE ratio. The ratio’s movement indicates that investors were paying less for each dollar of FCFE over time, potentially reflecting changing market perceptions of the company’s future prospects or increased risk assessment.
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