Using the industry peer median P/E multiple (trailing + forward), Expeditors International of Washington, Inc. (EXPD) has a fair value of $116.33 based on 5 comparable companies in the Integrated Freight & Logistics industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Expeditors International of Washington, Inc.EXPD | 19,536 | 24.1x | 26.1x |
| C.H. Robinson Worldwide, Inc.CHRW | 20,053 | 35.0x | 27.9x |
| J.B. Hunt Transport Services, Inc.JBHT | 19,694 | 33.8x | 28.7x |
| Snap-on IncorporatedSNA | 18,851 | 18.9x | 18.7x |
| Lennox International Inc.LII | 15,544 | 19.9x | 18.4x |
| Pentair plcPNR | 14,126 | 21.8x | 17.6x |
| Industry Median | 21.8x | 18.7x | |
| (*) Profit after tax | 814 | 747 | |
| Equity Value | 17,738 | 13,963 | |
| (/) Outstanding shares | 136 | 136 | |
| Fair Price | $130 | $102 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.