Using the industry peer median P/E multiple (trailing + forward), FedEx Corporation (FDX) has a fair value of $442.76 based on 8 comparable companies in the Integrated Freight & Logistics industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| FedEx CorporationFDX | 85,308 | 20.9x | 17.9x |
| United Parcel Service, Inc.UPS | 82,750 | 14.8x | 13.8x |
| CSX CorporationCSX | 74,010 | 25.8x | 21.6x |
| Cummins Inc.CMI | 73,414 | 25.9x | 25.9x |
| Republic Services, Inc.RSG | 67,417 | 31.8x | 30.1x |
| L3Harris Technologies, Inc.LHX | 65,431 | 41.0x | 30.2x |
| Norfolk Southern CorporationNSC | 63,453 | 22.2x | 23.2x |
| PACCAR IncPCAR | 60,701 | 25.6x | 22.9x |
| United Rentals, Inc.URI | 47,250 | 19.2x | 17.2x |
| Industry Median | 25.7x | 23.1x | |
| (*) Profit after tax | 4,092 | 4,761 | |
| Equity Value | 105,241 | 109,939 | |
| (/) Outstanding shares | 243 | 243 | |
| Fair Price | $433 | $452 | |
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.