Intrinsic value of FedEx Corporation - FDX

Previous Close

$156.00

  Intrinsic Value

$163.18

stock screener

  Rating & Target

hold

+5%

Previous close

$156.00

 
Intrinsic value

$163.18

 
Up/down potential

+5%

 
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 40.7

 

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, %
  9.30
  8.87
  8.48
  8.13
  7.82
  7.54
  7.29
  7.06
  6.85
  6.67
  6.50
  6.35
  6.21
  6.09
  5.98
  5.89
  5.80
  5.72
  5.65
  5.58
  5.52
  5.47
  5.42
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
Revenue, $m
  71,537
  77,882
  84,489
  91,362
  98,507
  105,934
  113,652
  121,672
  130,007
  138,673
  147,686
  157,063
  166,824
  176,989
  187,579
  198,619
  210,132
  222,146
  234,687
  247,784
  261,469
  275,773
  290,729
  306,374
  322,743
  339,877
  357,815
  376,600
  396,278
  416,894
Variable operating expenses, $m
  65,534
  71,285
  77,273
  83,503
  89,979
  96,710
  103,705
  110,974
  118,529
  126,383
  133,855
  142,354
  151,200
  160,413
  170,012
  180,017
  190,453
  201,341
  212,708
  224,578
  236,981
  249,946
  263,501
  277,680
  292,517
  308,046
  324,304
  341,330
  359,165
  377,850
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
  65,534
  71,285
  77,273
  83,503
  89,979
  96,710
  103,705
  110,974
  118,529
  126,383
  133,855
  142,354
  151,200
  160,413
  170,012
  180,017
  190,453
  201,341
  212,708
  224,578
  236,981
  249,946
  263,501
  277,680
  292,517
  308,046
  324,304
  341,330
  359,165
  377,850
Operating income, $m
  6,002
  6,597
  7,215
  7,859
  8,528
  9,224
  9,947
  10,698
  11,478
  12,290
  13,831
  14,710
  15,624
  16,576
  17,568
  18,601
  19,680
  20,805
  21,979
  23,206
  24,488
  25,827
  27,228
  28,693
  30,226
  31,831
  33,511
  35,270
  37,113
  39,044
EBITDA, $m
  9,743
  10,608
  11,507
  12,443
  13,417
  14,428
  15,479
  16,572
  17,707
  18,887
  20,115
  21,392
  22,721
  24,106
  25,548
  27,052
  28,620
  30,256
  31,964
  33,748
  35,612
  37,560
  39,597
  41,728
  43,957
  46,291
  48,734
  51,293
  53,973
  56,781
Interest expense (income), $m
  484
  925
  1,090
  1,263
  1,442
  1,629
  1,823
  2,024
  2,234
  2,452
  2,678
  2,913
  3,158
  3,412
  3,677
  3,953
  4,241
  4,541
  4,853
  5,179
  5,520
  5,876
  6,247
  6,636
  7,042
  7,466
  7,911
  8,376
  8,863
  9,373
  9,907
Earnings before tax, $m
  5,077
  5,506
  5,953
  6,417
  6,900
  7,401
  7,922
  8,464
  9,027
  9,612
  10,918
  11,552
  12,211
  12,898
  13,614
  14,360
  15,139
  15,952
  16,800
  17,686
  18,612
  19,580
  20,592
  21,651
  22,760
  23,920
  25,135
  26,407
  27,740
  29,136
Tax expense, $m
  1,371
  1,487
  1,607
  1,733
  1,863
  1,998
  2,139
  2,285
  2,437
  2,595
  2,948
  3,119
  3,297
  3,483
  3,676
  3,877
  4,088
  4,307
  4,536
  4,775
  5,025
  5,287
  5,560
  5,846
  6,145
  6,458
  6,786
  7,130
  7,490
  7,867
Net income, $m
  3,706
  4,020
  4,346
  4,685
  5,037
  5,403
  5,783
  6,179
  6,590
  7,017
  7,970
  8,433
  8,914
  9,416
  9,938
  10,483
  11,051
  11,645
  12,264
  12,911
  13,587
  14,293
  15,032
  15,806
  16,615
  17,462
  18,348
  19,277
  20,250
  21,270

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
  57,184
  62,256
  67,537
  73,031
  78,743
  84,679
  90,849
  97,259
  103,923
  110,850
  118,055
  125,550
  133,353
  141,478
  149,943
  158,768
  167,971
  177,575
  187,599
  198,069
  209,008
  220,442
  232,397
  244,903
  257,988
  271,684
  286,023
  301,039
  316,769
  333,249
Adjusted assets (=assets-cash), $m
  57,184
  62,256
  67,537
  73,031
  78,743
  84,679
  90,849
  97,259
  103,923
  110,850
  118,055
  125,550
  133,353
  141,478
  149,943
  158,768
  167,971
  177,575
  187,599
  198,069
  209,008
  220,442
  232,397
  244,903
  257,988
  271,684
  286,023
  301,039
  316,769
  333,249
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
  33,479
  36,449
  39,541
  42,757
  46,101
  49,577
  53,189
  56,942
  60,843
  64,899
  69,117
  73,506
  78,074
  82,831
  87,787
  92,954
  98,342
  103,964
  109,833
  115,963
  122,368
  129,062
  136,061
  143,383
  151,044
  159,062
  167,457
  176,249
  185,458
  195,106
Working capital, $m
  1,931
  2,103
  2,281
  2,467
  2,660
  2,860
  3,069
  3,285
  3,510
  3,744
  3,988
  4,241
  4,504
  4,779
  5,065
  5,363
  5,674
  5,998
  6,337
  6,690
  7,060
  7,446
  7,850
  8,272
  8,714
  9,177
  9,661
  10,168
  10,699
  11,256
Total debt, $m
  20,191
  23,381
  26,703
  30,159
  33,751
  37,485
  41,366
  45,398
  49,589
  53,947
  58,478
  63,193
  68,101
  73,212
  78,536
  84,087
  89,876
  95,916
  102,222
  108,807
  115,688
  122,880
  130,400
  138,266
  146,496
  155,111
  164,130
  173,576
  183,469
  193,835
Total liabilities, $m
  35,969
  39,159
  42,481
  45,937
  49,529
  53,263
  57,144
  61,176
  65,367
  69,725
  74,256
  78,971
  83,879
  88,990
  94,314
  99,865
  105,654
  111,694
  118,000
  124,585
  131,466
  138,658
  146,178
  154,044
  162,274
  170,889
  179,908
  189,354
  199,247
  209,613
Total equity, $m
  21,215
  23,097
  25,056
  27,095
  29,214
  31,416
  33,705
  36,083
  38,555
  41,125
  43,798
  46,579
  49,474
  52,488
  55,629
  58,903
  62,317
  65,880
  69,599
  73,484
  77,542
  81,784
  86,219
  90,859
  95,714
  100,795
  106,114
  111,686
  117,521
  123,635
Total liabilities and equity, $m
  57,184
  62,256
  67,537
  73,032
  78,743
  84,679
  90,849
  97,259
  103,922
  110,850
  118,054
  125,550
  133,353
  141,478
  149,943
  158,768
  167,971
  177,574
  187,599
  198,069
  209,008
  220,442
  232,397
  244,903
  257,988
  271,684
  286,022
  301,040
  316,768
  333,248
Debt-to-equity ratio
  0.950
  1.010
  1.070
  1.110
  1.160
  1.190
  1.230
  1.260
  1.290
  1.310
  1.340
  1.360
  1.380
  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
  1.550
  1.560
  1.570
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
  3,706
  4,020
  4,346
  4,685
  5,037
  5,403
  5,783
  6,179
  6,590
  7,017
  7,970
  8,433
  8,914
  9,416
  9,938
  10,483
  11,051
  11,645
  12,264
  12,911
  13,587
  14,293
  15,032
  15,806
  16,615
  17,462
  18,348
  19,277
  20,250
  21,270
Depreciation, amort., depletion, $m
  3,741
  4,011
  4,292
  4,584
  4,888
  5,204
  5,533
  5,874
  6,229
  6,597
  6,283
  6,682
  7,098
  7,530
  7,981
  8,450
  8,940
  9,451
  9,985
  10,542
  11,124
  11,733
  12,369
  13,035
  13,731
  14,460
  15,223
  16,023
  16,860
  17,737
Funds from operations, $m
  7,447
  8,030
  8,637
  9,269
  9,925
  10,607
  11,316
  12,053
  12,818
  13,614
  14,254
  15,115
  16,012
  16,946
  17,919
  18,933
  19,992
  21,096
  22,249
  23,453
  24,711
  26,026
  27,402
  28,840
  30,346
  31,922
  33,572
  35,300
  37,110
  39,007
Change in working capital, $m
  164
  171
  178
  186
  193
  201
  208
  217
  225
  234
  243
  253
  264
  274
  286
  298
  311
  324
  339
  354
  369
  386
  404
  422
  442
  463
  484
  507
  531
  557
Cash from operations, $m
  7,283
  7,859
  8,459
  9,083
  9,732
  10,407
  11,108
  11,836
  12,593
  13,380
  14,010
  14,862
  15,748
  16,671
  17,633
  18,635
  19,681
  20,772
  21,910
  23,099
  24,342
  25,640
  26,998
  28,418
  29,904
  31,459
  33,087
  34,793
  36,579
  38,450
Maintenance CAPEX, $m
  -2,782
  -3,044
  -3,314
  -3,595
  -3,887
  -4,191
  -4,507
  -4,835
  -5,177
  -5,531
  -5,900
  -6,283
  -6,682
  -7,098
  -7,530
  -7,981
  -8,450
  -8,940
  -9,451
  -9,985
  -10,542
  -11,124
  -11,733
  -12,369
  -13,035
  -13,731
  -14,460
  -15,223
  -16,023
  -16,860
New CAPEX, $m
  -2,880
  -2,970
  -3,092
  -3,217
  -3,344
  -3,476
  -3,612
  -3,753
  -3,901
  -4,056
  -4,218
  -4,389
  -4,568
  -4,757
  -4,956
  -5,167
  -5,388
  -5,622
  -5,869
  -6,130
  -6,404
  -6,694
  -7,000
  -7,322
  -7,661
  -8,018
  -8,395
  -8,792
  -9,209
  -9,649
Cash from investing activities, $m
  -5,662
  -6,014
  -6,406
  -6,812
  -7,231
  -7,667
  -8,119
  -8,588
  -9,078
  -9,587
  -10,118
  -10,672
  -11,250
  -11,855
  -12,486
  -13,148
  -13,838
  -14,562
  -15,320
  -16,115
  -16,946
  -17,818
  -18,733
  -19,691
  -20,696
  -21,749
  -22,855
  -24,015
  -25,232
  -26,509
Free cash flow, $m
  1,621
  1,846
  2,054
  2,272
  2,501
  2,740
  2,989
  3,247
  3,515
  3,793
  3,892
  4,190
  4,498
  4,817
  5,147
  5,488
  5,842
  6,209
  6,590
  6,985
  7,395
  7,822
  8,265
  8,727
  9,208
  9,709
  10,232
  10,778
  11,347
  11,942
Issuance/(repayment) of debt, $m
  3,055
  3,190
  3,322
  3,456
  3,593
  3,734
  3,880
  4,032
  4,191
  4,357
  4,532
  4,715
  4,908
  5,111
  5,325
  5,551
  5,789
  6,040
  6,306
  6,585
  6,881
  7,192
  7,520
  7,866
  8,231
  8,615
  9,019
  9,445
  9,894
  10,366
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  
  3,055
  3,190
  3,322
  3,456
  3,593
  3,734
  3,880
  4,032
  4,191
  4,357
  4,532
  4,715
  4,908
  5,111
  5,325
  5,551
  5,789
  6,040
  6,306
  6,585
  6,881
  7,192
  7,520
  7,866
  8,231
  8,615
  9,019
  9,445
  9,894
  10,366
Total cash flow (excl. dividends), $m
  4,676
  5,036
  5,375
  5,728
  6,094
  6,474
  6,869
  7,280
  7,707
  8,150
  8,424
  8,905
  9,406
  9,927
  10,471
  11,039
  11,631
  12,249
  12,895
  13,570
  14,276
  15,014
  15,785
  16,593
  17,439
  18,324
  19,251
  20,223
  21,241
  22,307
Retained Cash Flow (-), $m
  -1,799
  -1,882
  -1,959
  -2,038
  -2,119
  -2,202
  -2,289
  -2,378
  -2,472
  -2,570
  -2,673
  -2,781
  -2,895
  -3,014
  -3,141
  -3,274
  -3,414
  -3,563
  -3,719
  -3,884
  -4,058
  -4,242
  -4,436
  -4,640
  -4,855
  -5,081
  -5,320
  -5,571
  -5,836
  -6,114
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
  2,876
  3,155
  3,416
  3,690
  3,975
  4,272
  4,580
  4,901
  5,235
  5,580
  5,751
  6,124
  6,511
  6,913
  7,331
  7,765
  8,217
  8,687
  9,176
  9,686
  10,217
  10,772
  11,350
  11,954
  12,584
  13,243
  13,932
  14,652
  15,405
  16,193
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
  2,719
  2,803
  2,836
  2,845
  2,827
  2,783
  2,712
  2,617
  2,498
  2,358
  2,131
  1,968
  1,796
  1,617
  1,435
  1,256
  1,083
  919
  766
  628
  506
  399
  309
  234
  173
  125
  88
  61
  40
  26
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 Corporation (FDX)

Valuation Ratios
P/E Ratio 14
Price to Sales 0.7
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 8.5
Price to Free Cash Flow -225
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 Corporation. The default revenue input number comes from 0001 income statement of FedEx Corporation. 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 9.3% 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 Corporation, 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 Corporation.
    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 Corporation.

Corporate tax rate of 27% is the nominal tax rate for FedEx Corporation. 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 Corporation 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 Corporation - 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 261.041 million for FedEx Corporation 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 Corporation at the current share price and the inputted number of shares is $40.7 billion.

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