Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
United Parcel Service Inc., current price multiples
| United Parcel Service Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | Transportation | Industrials | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||
| Current share price (P) | $97.89 | |||||||||
| No. shares of common stock outstanding | 849,101,714 | |||||||||
| Growth rate (g) | 14.62% | |||||||||
| Earnings per share (EPS) | $6.56 | |||||||||
| Next year expected EPS | $7.52 | |||||||||
| Operating profit per share | $9.27 | |||||||||
| Sales per share | $104.42 | |||||||||
| Book value per share (BVPS) | $19.11 | |||||||||
| Valuation Ratios (Price Multiples) | ||||||||||
| Price to earnings (P/E) | 14.92 | 20.29 | 14.94 | 20.29 | 8.35 | 16.19 | 28.53 | |||
| Price to next year expected earnings | 13.01 | 18.21 | 13.77 | 16.33 | 7.53 | 13.92 | 25.96 | |||
| Price-earnings-growth (PEG) | 1.02 | 1.78 | 1.76 | 0.84 | 0.77 | 0.99 | 2.88 | |||
| Price to operating profit (P/OP) | 10.57 | 15.92 | 26.99 | 14.71 | 5.94 | 14.73 | 22.91 | |||
| Price to sales (P/S) | 0.94 | 0.94 | 2.89 | 5.91 | 0.47 | 1.57 | 2.72 | |||
| Price to book value (P/BV) | 5.12 | 2.96 | 5.55 | 7.84 | 1.83 | 4.65 | 7.83 | |||
Based on: 10-K (reporting date: 2025-12-31).
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)
United Parcel Service Inc., historical price multiples
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 valuation ratios demonstrate varied trends over the five-year period. Generally, the ratios indicate decreasing valuations from 2021 to 2023, followed by a period of relative stabilization and slight increases towards 2025. This suggests a potential shift in investor sentiment or underlying business performance during the observed timeframe.
- Price to Earnings (P/E)
- The Price to Earnings ratio experienced a decline from 14.11 in 2021 to 13.27 in 2022. A subsequent increase to 18.89 in 2023 was observed, followed by a decrease to 17.05 in 2024 and a slight increase to 17.60 in 2025. This indicates fluctuating investor expectations regarding future earnings growth.
- Price to Operating Profit (P/OP)
- The Price to Operating Profit ratio exhibited a consistent decrease from 14.20 in 2021 to 11.70 in 2022. It then rose to 13.86 in 2023 before declining again to 11.64 in 2024, and finally increasing to 12.47 in 2025. This pattern mirrors the P/E ratio, suggesting a correlation between market valuation and operating profitability.
- Price to Sales (P/S)
- A notable downward trend is evident in the Price to Sales ratio, decreasing from 1.87 in 2021 to 1.39 in 2023. The ratio continued to decline to 1.08 in 2024, with a slight increase to 1.11 in 2025. This suggests a decreasing valuation relative to revenue generation, potentially indicating increased competition or slowing sales growth.
- Price to Book Value (P/BV)
- The Price to Book Value ratio experienced a significant decrease from 12.76 in 2021 to 7.75 in 2022. This decline continued to 7.32 in 2023, and further to 5.90 in 2024, before stabilizing at 6.04 in 2025. This substantial reduction suggests a diminishing premium investors are willing to pay for the company’s net asset value, potentially reflecting concerns about asset utilization or future returns on equity.
Overall, the observed trends suggest a period of valuation compression followed by a degree of stabilization. The consistent decline in Price to Sales and Price to Book Value ratios warrants further investigation into the underlying drivers of these changes.
Price to Earnings (P/E)
United Parcel Service Inc., historical P/E 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$) | ||||||
| Net income (in millions) | 5,572) | 5,782) | 6,708) | 11,548) | 12,890) | |
| Earnings per share (EPS)2 | 6.56 | 6.77 | 7.87 | 13.45 | 14.81 | |
| Share price1, 3 | 115.51 | 115.42 | 148.64 | 178.46 | 208.97 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 17.60 | 17.05 | 18.89 | 13.27 | 14.11 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| FedEx Corp. | 13.01 | 17.21 | 16.11 | 14.80 | 15.07 | |
| Uber Technologies Inc. | 14.33 | 16.83 | 89.56 | — | — | |
| Union Pacific Corp. | 21.00 | 21.68 | 23.85 | 17.97 | 23.67 | |
| United Airlines Holdings Inc. | 10.54 | 9.58 | 5.70 | 21.74 | — | |
| P/E Ratio, Sector | ||||||
| Transportation | 15.91 | 17.26 | 24.43 | 30.10 | 22.48 | |
| P/E Ratio, Industry | ||||||
| Industrials | 29.14 | 28.42 | 24.85 | 36.06 | 35.59 | |
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.
2 2025 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 5,572,000,000 ÷ 849,101,714 = 6.56
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= 115.51 ÷ 6.56 = 17.60
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibited fluctuating behavior over the five-year period. Initially, the share price decreased while earnings per share (EPS) also declined, resulting in a complex interplay reflected in the P/E ratio.
- Share Price Trend
- The share price demonstrated a consistent downward trend from 2021 to 2024, decreasing from US$208.97 to US$115.42. A slight increase was observed in 2025, reaching US$115.51, but remained significantly below the 2021 level.
- Earnings Per Share (EPS) Trend
- EPS experienced a decline throughout the period. From US$14.81 in 2021, EPS decreased to US$7.87 in 2023, and continued to fall to US$6.56 in 2025. The rate of decline appeared to moderate between 2024 and 2025.
- P/E Ratio Analysis
- The P/E ratio initially decreased from 14.11 in 2021 to 13.27 in 2022, coinciding with the declines in both share price and EPS. An increase to 18.89 was noted in 2023, despite the continued decrease in EPS, suggesting a disproportionate decline in share price relative to earnings. The P/E ratio then decreased to 17.05 in 2024, and remained relatively stable at 17.60 in 2025. This stabilization occurred despite further reductions in EPS, indicating the share price decline largely mirrored the earnings decrease during those years.
The observed trends suggest that investor sentiment shifted over the period, potentially reflecting concerns about future earnings potential. The initial declines in both share price and EPS were followed by a period where the share price decreased at a faster rate than earnings, leading to a temporary increase in the P/E ratio. The subsequent stabilization of the P/E ratio suggests a re-alignment between price and earnings expectations.
Price to Operating Profit (P/OP)
United Parcel Service Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 849,101,714 | 854,171,950 | 852,653,061 | 858,740,988 | 870,391,403 | |
| Selected Financial Data (US$) | ||||||
| Operating profit (in millions) | 7,867) | 8,468) | 9,141) | 13,094) | 12,810) | |
| Operating profit per share2 | 9.27 | 9.91 | 10.72 | 15.25 | 14.72 | |
| Share price1, 3 | 115.51 | 115.42 | 148.64 | 178.46 | 208.97 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 12.47 | 11.64 | 13.86 | 11.70 | 14.20 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| FedEx Corp. | 10.21 | 13.40 | 13.03 | 9.07 | 13.46 | |
| Uber Technologies Inc. | 25.88 | 59.27 | 152.26 | — | — | |
| Union Pacific Corp. | 15.22 | 15.06 | 16.75 | 12.68 | 16.53 | |
| United Airlines Holdings Inc. | 7.50 | 5.92 | 3.54 | 6.86 | — | |
| P/OP Ratio, Sector | ||||||
| Transportation | 14.47 | 16.29 | 18.51 | 14.13 | 21.54 | |
| P/OP Ratio, Industry | ||||||
| Industrials | 23.41 | 23.03 | 20.78 | 19.86 | 22.38 | |
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.
2 2025 Calculation
Operating profit per share = Operating profit ÷ No. shares of common stock outstanding
= 7,867,000,000 ÷ 849,101,714 = 9.27
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 115.51 ÷ 9.27 = 12.47
5 Click competitor name to see calculations.
The price to operating profit (P/OP) ratio exhibited fluctuations over the five-year period. Initially, the share price decreased while operating profit per share showed some initial growth, followed by declines. This interplay influenced the observed P/OP ratio trends.
- Share Price
- The share price demonstrated a consistent downward trajectory from 2021 to 2024, decreasing from US$208.97 to US$115.42. A slight increase was observed in 2025, reaching US$115.51, but remained significantly below the 2021 level.
- Operating Profit Per Share
- Operating profit per share increased modestly from US$14.72 in 2021 to US$15.25 in 2022. Subsequently, a decline was noted, falling to US$10.72 in 2023, and continuing to US$9.91 in 2024. This downward trend persisted into 2025, with operating profit per share reaching US$9.27.
- P/OP Ratio
- The P/OP ratio began at 14.20 in 2021, decreased to 11.70 in 2022, and then increased to 13.86 in 2023. A subsequent decrease to 11.64 was observed in 2024, followed by a slight increase to 12.47 in 2025. The ratio’s movements largely reflect the combined effect of changes in share price and operating profit per share. The initial decline in the ratio from 2021 to 2022 was likely driven by a greater decrease in share price than in operating profit per share. The increase in 2023 occurred despite a falling share price, suggesting a more substantial decline in operating profit per share. The slight increase in 2025 suggests a stabilization, but the ratio remains below its 2021 level.
Overall, the period witnessed a contraction in both share price and operating profit per share, resulting in a fluctuating P/OP ratio that ultimately remained lower in 2025 than in 2021. The interplay between these two factors is evident in the ratio’s movements.
Price to Sales (P/S)
United Parcel Service Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 849,101,714 | 854,171,950 | 852,653,061 | 858,740,988 | 870,391,403 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in millions) | 88,661) | 91,070) | 90,958) | 100,338) | 97,287) | |
| Sales per share2 | 104.42 | 106.62 | 106.68 | 116.84 | 111.77 | |
| Share price1, 3 | 115.51 | 115.42 | 148.64 | 178.46 | 208.97 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 1.11 | 1.08 | 1.39 | 1.53 | 1.87 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| FedEx Corp. | 0.61 | 0.85 | 0.71 | 0.61 | 0.94 | |
| Uber Technologies Inc. | 2.77 | 3.77 | 4.53 | 2.16 | 3.90 | |
| Union Pacific Corp. | 6.12 | 6.03 | 6.31 | 5.05 | 7.08 | |
| United Airlines Holdings Inc. | 0.60 | 0.53 | 0.28 | 0.36 | 0.63 | |
| P/S Ratio, Sector | ||||||
| Transportation | 1.54 | 1.70 | 1.78 | 1.42 | 2.03 | |
| P/S Ratio, Industry | ||||||
| Industrials | 2.78 | 2.29 | 2.06 | 1.80 | 2.07 | |
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.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 88,661,000,000 ÷ 849,101,714 = 104.42
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= 115.51 ÷ 104.42 = 1.11
5 Click competitor name to see calculations.
The price to sales ratio exhibited a consistent decline over the five-year period. Initially, the ratio stood at 1.87 in 2021, and subsequently decreased to 1.11 by 2025. This downward trajectory occurred alongside fluctuations in both share price and sales per share.
- Share Price
- The share price demonstrated a significant decrease from US$208.97 in 2021 to US$115.42 in 2024. A slight increase to US$115.51 was observed in 2025, but remained substantially lower than the 2021 value. This decline likely contributed to the overall reduction in the price to sales ratio.
- Sales per Share
- Sales per share increased from US$111.77 in 2021 to US$116.84 in 2022, before declining to US$104.42 by 2025. The decrease in sales per share during the latter part of the period partially offset the impact of the declining share price on the price to sales ratio, but did not prevent the overall downward trend.
- Price to Sales Ratio Trend
- The most substantial decrease in the price to sales ratio occurred between 2022 and 2024, falling from 1.53 to 1.08. The ratio’s decline suggests that the market was valuing each dollar of sales at a decreasing rate over time. The stabilization at 1.11 in 2025 indicates a potential leveling off of this valuation adjustment, although the ratio remains considerably lower than its 2021 level.
The combined effect of decreasing share price and fluctuating sales per share resulted in a notable reduction in the price to sales ratio throughout the observed period. The ratio’s movement suggests a shift in market perception regarding the company’s valuation relative to its sales.
Price to Book Value (P/BV)
United Parcel Service Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 849,101,714 | 854,171,950 | 852,653,061 | 858,740,988 | 870,391,403 | |
| Selected Financial Data (US$) | ||||||
| Equity for controlling interests (in millions) | 16,227) | 16,718) | 17,306) | 19,786) | 14,253) | |
| Book value per share (BVPS)2 | 19.11 | 19.57 | 20.30 | 23.04 | 16.38 | |
| Share price1, 3 | 115.51 | 115.42 | 148.64 | 178.46 | 208.97 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 6.04 | 5.90 | 7.32 | 7.75 | 12.76 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| FedEx Corp. | 1.90 | 2.70 | 2.45 | 2.27 | 3.26 | |
| Uber Technologies Inc. | 5.33 | 7.70 | 15.02 | 9.36 | 4.71 | |
| Union Pacific Corp. | 8.12 | 8.66 | 10.29 | 10.34 | 10.90 | |
| United Airlines Holdings Inc. | 2.31 | 2.38 | 1.60 | 2.32 | 3.06 | |
| P/BV Ratio, Sector | ||||||
| Transportation | 4.57 | 5.40 | 6.69 | 5.91 | 6.92 | |
| P/BV Ratio, Industry | ||||||
| Industrials | 8.00 | 6.68 | 6.85 | 5.50 | 5.44 | |
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.
2 2025 Calculation
BVPS = Equity for controlling interests ÷ No. shares of common stock outstanding
= 16,227,000,000 ÷ 849,101,714 = 19.11
3 Closing price as at the filing date of United Parcel Service Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= 115.51 ÷ 19.11 = 6.04
5 Click competitor name to see calculations.
The price to book value ratio exhibited a consistent decline over the five-year period. Initially, the ratio stood at 12.76 in 2021, and subsequently decreased to 6.04 by 2025. This suggests a diminishing premium investors were willing to pay for each dollar of net asset value during the observed timeframe.
- Price to Book Value (P/BV) Trend
- The P/BV ratio experienced a substantial decrease from 12.76 in 2021 to 7.75 in 2022, representing a nearly 40% reduction. This initial decline continued, albeit at a slower pace, reaching 7.32 in 2023. The most significant drop occurred between 2023 and 2024, with the ratio falling to 5.90. A slight increase to 6.04 was observed between 2024 and 2025, but the ratio remained considerably lower than its value in 2021.
- Share Price and Book Value per Share
- The share price demonstrated a consistent downward trend, decreasing from US$208.97 in 2021 to US$115.51 in 2025. Book value per share initially increased from US$16.38 in 2021 to US$23.04 in 2022, before declining to US$19.11 in 2025. The decreasing share price, coupled with the fluctuating book value per share, contributed to the overall decline in the P/BV ratio.
The convergence of the share price and book value per share, as evidenced by the decreasing P/BV ratio, indicates that the market valuation of the company’s net assets diminished relative to its stock price over the period. This could be attributed to various factors, including changes in investor sentiment, company performance expectations, or broader market conditions.