Intrinsic value of FedEx - FDX

Previous Close

$201.39

  Intrinsic Value

$162.74

stock screener

  Rating & Target

hold

-19%

Previous close

$201.39

 
Intrinsic value

$162.74

 
Up/down potential

-19%

 
Rating

hold

We calculate the intrinsic value of FDX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 53.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  10.10
  9.59
  9.13
  8.72
  8.35
  8.01
  7.71
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
Revenue, $m
  72,060
  78,971
  86,182
  93,695
  101,515
  109,648
  118,102
  126,888
  136,018
  145,507
  155,369
  165,625
  176,291
  187,391
  198,947
  210,984
  223,527
  236,604
  250,246
  264,482
  279,346
  294,872
  311,097
  328,058
  345,795
  364,351
  383,769
  404,096
  425,379
  447,670
Variable operating expenses, $m
  66,009
  72,272
  78,808
  85,618
  92,705
  100,076
  107,739
  115,702
  123,977
  132,577
  140,819
  150,113
  159,781
  169,841
  180,315
  191,224
  202,593
  214,445
  226,809
  239,712
  253,184
  267,256
  281,961
  297,334
  313,410
  330,228
  347,827
  366,250
  385,540
  405,744
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  66,009
  72,272
  78,808
  85,618
  92,705
  100,076
  107,739
  115,702
  123,977
  132,577
  140,819
  150,113
  159,781
  169,841
  180,315
  191,224
  202,593
  214,445
  226,809
  239,712
  253,184
  267,256
  281,961
  297,334
  313,410
  330,228
  347,827
  366,250
  385,540
  405,744
Operating income, $m
  6,051
  6,699
  7,374
  8,078
  8,810
  9,572
  10,363
  11,186
  12,041
  12,930
  14,551
  15,511
  16,510
  17,550
  18,632
  19,759
  20,934
  22,159
  23,436
  24,770
  26,162
  27,616
  29,135
  30,724
  32,385
  34,123
  35,941
  37,845
  39,838
  41,926
EBITDA, $m
  9,815
  10,756
  11,738
  12,761
  13,826
  14,934
  16,085
  17,282
  18,526
  19,818
  21,161
  22,558
  24,011
  25,523
  27,096
  28,736
  30,444
  32,225
  34,083
  36,022
  38,047
  40,161
  42,371
  44,681
  47,097
  49,624
  52,269
  55,038
  57,936
  60,972
Interest expense (income), $m
  484
  925
  1,105
  1,292
  1,488
  1,692
  1,904
  2,125
  2,355
  2,593
  2,841
  3,099
  3,366
  3,645
  3,934
  4,236
  4,550
  4,876
  5,217
  5,572
  5,942
  6,329
  6,733
  7,154
  7,595
  8,055
  8,537
  9,041
  9,568
  10,120
  10,697
Earnings before tax, $m
  5,126
  5,594
  6,082
  6,590
  7,118
  7,667
  8,238
  8,832
  9,448
  10,089
  11,452
  12,145
  12,866
  13,615
  14,396
  15,210
  16,058
  16,942
  17,864
  18,827
  19,833
  20,883
  21,981
  23,129
  24,330
  25,586
  26,901
  28,277
  29,719
  31,229
Tax expense, $m
  1,384
  1,510
  1,642
  1,779
  1,922
  2,070
  2,224
  2,385
  2,551
  2,724
  3,092
  3,279
  3,474
  3,676
  3,887
  4,107
  4,336
  4,574
  4,823
  5,083
  5,355
  5,639
  5,935
  6,245
  6,569
  6,908
  7,263
  7,635
  8,024
  8,432
Net income, $m
  3,742
  4,084
  4,440
  4,810
  5,196
  5,597
  6,014
  6,447
  6,897
  7,365
  8,360
  8,866
  9,392
  9,939
  10,509
  11,103
  11,722
  12,368
  13,041
  13,744
  14,478
  15,245
  16,046
  16,884
  17,761
  18,678
  19,638
  20,643
  21,695
  22,797

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  57,602
  63,126
  68,890
  74,896
  81,147
  87,648
  94,406
  101,429
  108,728
  116,312
  124,196
  132,394
  140,920
  149,793
  159,031
  168,652
  178,678
  189,132
  200,036
  211,416
  223,298
  235,709
  248,678
  262,236
  276,415
  291,248
  306,770
  323,018
  340,031
  357,849
Adjusted assets (=assets-cash), $m
  57,602
  63,126
  68,890
  74,896
  81,147
  87,648
  94,406
  101,429
  108,728
  116,312
  124,196
  132,394
  140,920
  149,793
  159,031
  168,652
  178,678
  189,132
  200,036
  211,416
  223,298
  235,709
  248,678
  262,236
  276,415
  291,248
  306,770
  323,018
  340,031
  357,849
Revenue / Adjusted assets
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
  1.251
Average production assets, $m
  33,724
  36,958
  40,333
  43,849
  47,509
  51,315
  55,272
  59,384
  63,657
  68,097
  72,713
  77,512
  82,504
  87,699
  93,107
  98,740
  104,610
  110,731
  117,115
  123,778
  130,734
  138,000
  145,593
  153,531
  161,832
  170,516
  179,604
  189,117
  199,077
  209,509
Working capital, $m
  1,946
  2,132
  2,327
  2,530
  2,741
  2,960
  3,189
  3,426
  3,672
  3,929
  4,195
  4,472
  4,760
  5,060
  5,372
  5,697
  6,035
  6,388
  6,757
  7,141
  7,542
  7,962
  8,400
  8,858
  9,336
  9,837
  10,362
  10,911
  11,485
  12,087
Total debt, $m
  20,454
  23,928
  27,554
  31,332
  35,264
  39,353
  43,604
  48,021
  52,612
  57,382
  62,341
  67,498
  72,861
  78,442
  84,252
  90,304
  96,611
  103,186
  110,045
  117,203
  124,676
  132,483
  140,641
  149,169
  158,087
  167,417
  177,180
  187,400
  198,102
  209,309
Total liabilities, $m
  36,232
  39,706
  43,332
  47,110
  51,042
  55,131
  59,382
  63,799
  68,390
  73,160
  78,119
  83,276
  88,639
  94,220
  100,030
  106,082
  112,389
  118,964
  125,823
  132,981
  140,454
  148,261
  156,419
  164,947
  173,865
  183,195
  192,958
  203,178
  213,880
  225,087
Total equity, $m
  21,370
  23,420
  25,558
  27,786
  30,106
  32,517
  35,025
  37,630
  40,338
  43,152
  46,077
  49,118
  52,281
  55,573
  59,000
  62,570
  66,290
  70,168
  74,214
  78,435
  82,844
  87,448
  92,260
  97,290
  102,550
  108,053
  113,812
  119,840
  126,152
  132,762
Total liabilities and equity, $m
  57,602
  63,126
  68,890
  74,896
  81,148
  87,648
  94,407
  101,429
  108,728
  116,312
  124,196
  132,394
  140,920
  149,793
  159,030
  168,652
  178,679
  189,132
  200,037
  211,416
  223,298
  235,709
  248,679
  262,237
  276,415
  291,248
  306,770
  323,018
  340,032
  357,849
Debt-to-equity ratio
  0.960
  1.020
  1.080
  1.130
  1.170
  1.210
  1.240
  1.280
  1.300
  1.330
  1.350
  1.370
  1.390
  1.410
  1.430
  1.440
  1.460
  1.470
  1.480
  1.490
  1.500
  1.510
  1.520
  1.530
  1.540
  1.550
  1.560
  1.560
  1.570
  1.580
Adjusted equity ratio
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371
  0.371

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,742
  4,084
  4,440
  4,810
  5,196
  5,597
  6,014
  6,447
  6,897
  7,365
  8,360
  8,866
  9,392
  9,939
  10,509
  11,103
  11,722
  12,368
  13,041
  13,744
  14,478
  15,245
  16,046
  16,884
  17,761
  18,678
  19,638
  20,643
  21,695
  22,797
Depreciation, amort., depletion, $m
  3,763
  4,057
  4,364
  4,684
  5,016
  5,362
  5,722
  6,096
  6,484
  6,888
  6,610
  7,047
  7,500
  7,973
  8,464
  8,976
  9,510
  10,066
  10,647
  11,253
  11,885
  12,545
  13,236
  13,957
  14,712
  15,501
  16,328
  17,192
  18,098
  19,046
Funds from operations, $m
  7,505
  8,141
  8,804
  9,494
  10,212
  10,960
  11,736
  12,543
  13,381
  14,253
  14,970
  15,912
  16,892
  17,912
  18,974
  20,080
  21,232
  22,434
  23,688
  24,996
  26,363
  27,790
  29,282
  30,842
  32,473
  34,179
  35,965
  37,835
  39,793
  41,843
Change in working capital, $m
  178
  187
  195
  203
  211
  220
  228
  237
  247
  256
  266
  277
  288
  300
  312
  325
  339
  353
  368
  384
  401
  419
  438
  458
  479
  501
  524
  549
  575
  602
Cash from operations, $m
  7,327
  7,954
  8,609
  9,291
  10,001
  10,740
  11,508
  12,306
  13,135
  13,997
  14,704
  15,636
  16,604
  17,612
  18,662
  19,755
  20,894
  22,081
  23,320
  24,612
  25,962
  27,371
  28,844
  30,384
  31,994
  33,678
  35,441
  37,286
  39,218
  41,241
Maintenance CAPEX, $m
  -2,782
  -3,066
  -3,360
  -3,667
  -3,986
  -4,319
  -4,665
  -5,025
  -5,399
  -5,787
  -6,191
  -6,610
  -7,047
  -7,500
  -7,973
  -8,464
  -8,976
  -9,510
  -10,066
  -10,647
  -11,253
  -11,885
  -12,545
  -13,236
  -13,957
  -14,712
  -15,501
  -16,328
  -17,192
  -18,098
New CAPEX, $m
  -3,125
  -3,234
  -3,375
  -3,516
  -3,660
  -3,806
  -3,957
  -4,112
  -4,273
  -4,441
  -4,616
  -4,799
  -4,992
  -5,195
  -5,408
  -5,633
  -5,870
  -6,120
  -6,384
  -6,663
  -6,956
  -7,266
  -7,593
  -7,938
  -8,301
  -8,684
  -9,088
  -9,513
  -9,961
  -10,432
Cash from investing activities, $m
  -5,907
  -6,300
  -6,735
  -7,183
  -7,646
  -8,125
  -8,622
  -9,137
  -9,672
  -10,228
  -10,807
  -11,409
  -12,039
  -12,695
  -13,381
  -14,097
  -14,846
  -15,630
  -16,450
  -17,310
  -18,209
  -19,151
  -20,138
  -21,174
  -22,258
  -23,396
  -24,589
  -25,841
  -27,153
  -28,530
Free cash flow, $m
  1,420
  1,654
  1,874
  2,108
  2,355
  2,615
  2,886
  3,169
  3,464
  3,769
  3,898
  4,226
  4,566
  4,917
  5,281
  5,657
  6,047
  6,451
  6,869
  7,303
  7,753
  8,220
  8,706
  9,210
  9,735
  10,282
  10,852
  11,446
  12,065
  12,711
Issuance/(repayment) of debt, $m
  3,318
  3,475
  3,626
  3,778
  3,932
  4,089
  4,251
  4,418
  4,591
  4,771
  4,959
  5,156
  5,363
  5,581
  5,810
  6,052
  6,307
  6,575
  6,859
  7,158
  7,474
  7,807
  8,158
  8,528
  8,918
  9,330
  9,763
  10,220
  10,701
  11,208
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  3,318
  3,475
  3,626
  3,778
  3,932
  4,089
  4,251
  4,418
  4,591
  4,771
  4,959
  5,156
  5,363
  5,581
  5,810
  6,052
  6,307
  6,575
  6,859
  7,158
  7,474
  7,807
  8,158
  8,528
  8,918
  9,330
  9,763
  10,220
  10,701
  11,208
Total cash flow (excl. dividends), $m
  4,738
  5,129
  5,500
  5,886
  6,287
  6,704
  7,137
  7,587
  8,054
  8,540
  8,857
  9,382
  9,929
  10,498
  11,091
  11,709
  12,354
  13,026
  13,728
  14,461
  15,226
  16,027
  16,863
  17,738
  18,654
  19,612
  20,615
  21,666
  22,766
  23,919
Retained Cash Flow (-), $m
  -1,954
  -2,049
  -2,138
  -2,228
  -2,319
  -2,412
  -2,507
  -2,606
  -2,708
  -2,814
  -2,925
  -3,041
  -3,163
  -3,292
  -3,427
  -3,570
  -3,720
  -3,878
  -4,046
  -4,222
  -4,408
  -4,604
  -4,812
  -5,030
  -5,260
  -5,503
  -5,759
  -6,028
  -6,312
  -6,611
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  2,783
  3,079
  3,362
  3,658
  3,968
  4,292
  4,630
  4,981
  5,346
  5,726
  5,932
  6,341
  6,765
  7,206
  7,664
  8,140
  8,634
  9,148
  9,682
  10,239
  10,818
  11,422
  12,052
  12,708
  13,394
  14,109
  14,857
  15,638
  16,454
  17,308
Discount rate, %
  5.80
  6.09
  6.39
  6.71
  7.05
  7.40
  7.77
  8.16
  8.57
  9.00
  9.45
  9.92
  10.42
  10.94
  11.48
  12.06
  12.66
  13.29
  13.96
  14.66
  15.39
  16.16
  16.97
  17.81
  18.71
  19.64
  20.62
  21.65
  22.74
  23.87
PV of cash for distribution, $m
  2,631
  2,736
  2,791
  2,821
  2,823
  2,796
  2,742
  2,659
  2,551
  2,419
  2,197
  2,038
  1,866
  1,685
  1,501
  1,317
  1,138
  967
  809
  664
  535
  423
  328
  248
  184
  133
  94
  65
  43
  28
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company's segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services. The FedEx Express segment offers a range of the United States domestic and international shipping services for delivery of packages and freight. TNT Express segment collects, transports and delivers documents, parcels and freight on a day-definite or time-definite basis. The FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services. The FedEx Freight segment offers less-than-truckload (LTL) freight services. The FedEx Services segment provides its other companies with sales, marketing, information technology, communications, customer service and other back-office support.

FINANCIAL RATIOS  of  FedEx (FDX)

Valuation Ratios
P/E Ratio 18
Price to Sales 0.9
Price to Book 3.4
Price to Tangible Book
Price to Cash Flow 11
Price to Free Cash Flow -290.5
Growth Rates
Sales Growth Rate 19.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 6%
Cap. Spend. - 3 Yr. Gr. Rate 7.7%
Financial Strength
Quick Ratio 180
Current Ratio 0
LT Debt to Equity 92.8%
Total Debt to Equity 92.9%
Interest Coverage 10
Management Effectiveness
Return On Assets 7%
Ret/ On Assets - 3 Yr. Avg. 5.1%
Return On Total Capital 10.2%
Ret/ On T. Cap. - 3 Yr. Avg. 7.5%
Return On Equity 20.1%
Return On Equity - 3 Yr. Avg. 13.2%
Asset Turnover 1.3
Profitability Ratios
Gross Margin 72.8%
Gross Margin - 3 Yr. Avg. 74.2%
EBITDA Margin 13.4%
EBITDA Margin - 3 Yr. Avg. 11.3%
Operating Margin 8.4%
Oper. Margin - 3 Yr. Avg. 6.1%
Pre-Tax Margin 7.6%
Pre-Tax Margin - 3 Yr. Avg. 5.5%
Net Profit Margin 5%
Net Profit Margin - 3 Yr. Avg. 3.6%
Effective Tax Rate 34.5%
Eff/ Tax Rate - 3 Yr. Avg. 34.5%
Payout Ratio 14.2%

FDX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the FDX stock intrinsic value calculation we used $65450 million for the last fiscal year's total revenue generated by FedEx. The default revenue input number comes from 0001 income statement of FedEx. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our FDX stock valuation model: a) initial revenue growth rate of 10.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 5.8%, whose default value for FDX is calculated based on our internal credit rating of FedEx, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of FedEx.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of FDX stock the variable cost ratio is equal to 91.7%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for FDX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for FedEx.

Corporate tax rate of 27% is the nominal tax rate for FedEx. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the FDX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for FDX are equal to 46.8%.

Life of production assets of 11 years is the average useful life of capital assets used in FedEx operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for FDX is equal to 2.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $19416 million for FedEx - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 265.925 million for FedEx is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of FedEx at the current share price and the inputted number of shares is $53.6 billion.

RELATED COMPANIES Price Int.Val. Rating
UPS United Parcel 105.32 116.53  hold
ATSG Air Transport 17.79 10.64  sell
AIRT Air T 28.50 120.73  str.buy

COMPANY NEWS

▶ Hedge Funds Are Dumping FedEx Corporation (FDX)   [Dec-09-18 01:27PM  Insider Monkey]
▶ [$$] FedEx to Change Head of Express Unit   [Dec-07-18 07:33PM  The Wall Street Journal]
▶ Key holiday shipping deadlines for UPS, FedEx, USPS and Amazon   [02:23PM  American City Business Journals]
▶ [$$] FedEx to Change Head of Express Unit   [02:00PM  The Wall Street Journal]
▶ CEO retiring, new top executive named for FedEx Express   [09:53AM  American City Business Journals]
▶ [$$] Walgreens Launches Next-Day Prescription Home Delivery With FedEx   [Dec-06-18 08:38PM  The Wall Street Journal]
▶ Walgreens and FedEx expand partnership   [12:11PM  American City Business Journals]
▶ Walgreens teams with FedEx for one-day prescription delivery   [12:01PM  American City Business Journals]
▶ FedEx office building sells for $11 million   [Dec-05-18 03:33PM  American City Business Journals]
▶ UPS upgrades navigation tool for drivers to optimize routes   [02:22PM  American City Business Journals]
▶ See inside: FedEx World Hub on track for another record holiday rush   [12:09PM  American City Business Journals]
▶ 6 Companies Growing Earnings   [Dec-03-18 03:06PM  GuruFocus.com]
▶ Sources: FedEx enacts freeze on internal spending   [Nov-30-18 05:58PM  American City Business Journals]
▶ Who's hiring: Local industries and companies staffing up   [Nov-28-18 03:55PM  American City Business Journals]
▶ Memphis company launches tech program in Nashville, floats HQ move   [03:34PM  American City Business Journals]
▶ Dodge & Cox Buys CVS Health, FedEx   [Nov-27-18 12:08PM  GuruFocus.com]
▶ [$$] UPSs Christmas Wish: A Delivery Surge It Can Handle   [08:04PM  The Wall Street Journal]
▶ [$$] UPS's Christmas Wish: A Delivery Surge It Can Handle   [07:00AM  The Wall Street Journal]
▶ UPSs Christmas Wish: A Delivery Surge It Can Handle   [07:00AM  The Wall Street Journal]
▶ 18 Retailers Offering Free Holiday Shipping   [Nov-23-18 10:03AM  Kiplinger]
▶ [$$] FedEx to Add 1,000 Electric Vehicles to Parcel Fleet   [Nov-22-18 07:20PM  The Wall Street Journal]
▶ FedEx and UPS race to meet demand as shoppers request free shipping   [Nov-21-18 01:41PM  Yahoo Finance Video]
▶ To meet demand, FedEx increases Memphis to Dubai flights   [12:20PM  American City Business Journals]
▶ Black Friday holiday shopping scams to avoid   [10:01AM  Yahoo Finance]
▶ FedEx's orange and purple just got more green   [Nov-20-18 03:03PM  American City Business Journals]
▶ [$$] FedEx to Add 1,000 Electric Vehicles to Parcel Fleet   [12:51PM  The Wall Street Journal]
▶ Is FedEx developing delivery bots?   [06:54AM  American City Business Journals]
▶ Cover story: How Richard Smith turned Memphis upside down   [03:53PM  American City Business Journals]
▶ Meet one of the 40 Under Forty Class of 2018: FedEx Freight's Wes Milligan   [Nov-09-18 01:32PM  American City Business Journals]
▶ FedEx: 'Trade Is Our Business'   [03:34PM  American City Business Journals]
▶ Fred Smith: Amazon will impact U.S. Postal Service, not FedEx   [12:37PM  American City Business Journals]
▶ FedEx delivering on plan to be in 500 Walmart stores across U.S.   [08:57AM  American City Business Journals]
▶ [$$] FedEx to Raise Shipping Rates in January   [07:45PM  The Wall Street Journal]

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