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United Parcel ServiceUPS +1.26%81 EV-to-OCF is 12.74 as of Aug. 10, 2026, which is 7% below its 10-year median of 13.74. GuruFocus rates UPS with a GF Score™ of 81/100 and a GF Value™ of $120.15 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,009 Transportation companies, United Parcel Service ranks worse than 72.55% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, United Parcel Service's Enterprise Value is $112,959 Mil.
United Parcel Service's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was $8,867 Mil. Therefore, United Parcel Service's EV-to-OCF for today is 12.74.
The historical rank and industry rank for United Parcel Service's EV-to-OCF or its related term are showing as below:
UPS'
s EV-to-OCF Range Over the Past 10 Years
Min: 8.08 Med: 13.74 Max: 92.75
Current: 12.74
During the past 13 years, the highest EV-to-OCF of United Parcel Service was 92.75. The lowest was 8.08. And the median was 13.74.
UPS's EV-to-OCF is ranked worse than 72.55% of 1009
companies
in the Transportation industry
Industry Median: 7.87
vs UPS: 12.74
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
United Parcel Service (NYSE:UPS) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
United Parcel Service's PE Ratio (TTM) for today is calculated as:
United Parcel Service's share price for today is $104.50.
United Parcel Service's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $5.380.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Integrated Freight & Logistics subindustry, United Parcel Service's EV-to-OCF, along with its competitors' market caps and EV-to-OCF data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
United Parcel Service EV-to-OCF vs Transportation Industry
For the Transportation industry and Industrials sector, United Parcel Service's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where United Parcel Service's EV-to-OCF falls into.
United Parcel Service's current Enterprise Value is $112,959 Mil.
United Parcel Service's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $8,867 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
United Parcel Service (UPS) has a EV-to-OCF of 12.74 as of Aug. 10, 2026. This is near median its historical median of 13.74. Over the past decade, United Parcel Service's EV-to-OCF has ranged from 8.08 to 92.75. According to the industry distribution chart, United Parcel Service ranks #732 out of 1009 companies in the Transportation industry, placing it in the top 72.5%.
Is United Parcel Service's EV-to-OCF too high?
United Parcel Service's current EV-to-OCF of 12.74 is near median its 10-year median of 13.74. Over the past 10 years, this metric has ranged from a low of 8.08 to a high of 92.75. The Transportation industry median EV-to-OCF is 7.87. United Parcel Service's value of 12.74 is 61.9% above this industry median. Based on the distribution chart, United Parcel Service ranks #732 out of 1009 companies in the Transportation industry, which is below the industry midpoint. Overall, United Parcel Service has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does United Parcel Service's EV-to-OCF compare to FDX and JBHT?
According to the Transportation industry distribution chart, United Parcel Service ranks #732 out of 1009 companies for EV-to-OCF. This places United Parcel Service in the lower half of its industry. The industry median EV-to-OCF is 7.87. United Parcel Service's value of 12.74 is 61.9% above this benchmark. Historically, United Parcel Service's own EV-to-OCF has ranged from 8.08 to 92.75 over the past decade. While the company's 10-year median is 13.74 vs. the industry median of 7.87, United Parcel Service has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-OCF for a Transportation company?
The median EV-to-OCF among Transportation companies is 7.87, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. United Parcel Service's current EV-to-OCF of 12.74 is 61.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Transportation industry, the median EV-to-OCF is 7.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Parcel Service's current EV-to-OCF is 12.74, which is near median its own 10-year median of 13.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Parcel Service stock overvalued right now?
Based on GuruFocus' analysis, United Parcel Service (UPS) is currently considered Modestly Undervalued. The stock's GF Value™ is $120.15, compared to a current price of $104.50 — trading 13% below its estimated fair value. The current EV-to-OCF is 12.74, which is near median its 10-year median of 13.74 and 61.9% above the Transportation industry median of 7.87. United Parcel Service's overall GF Score™ is 81/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For United Parcel Service (UPS), the current EV-to-OCF is 12.74 as of Aug. 10, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is United Parcel Service (UPS) Overvalued in 2026?
Based on GuruFocus' analysis, United Parcel Service stock appears to be undervalued.
The current stock price of $104.50 is trading 13% below its estimated GF Value™ of $120.15.
GuruFocus considers United Parcel Service to be Modestly Undervalued.
Key valuation signals for UPS:
EV-to-OCF: 12.74 (near median its 10-year median of 13.74)
GF Value™: $120.15 vs. price of $104.50 (13% below fair value)
Industry Position: 61.9% above the Transportation median (#732 of 1009)
No single metric tells the full story. See the UPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe. UPS' domestic US package operations generate around 65% of total revenue, while international package makes up 20%. Air and ocean freight forwarding and contract logistics make up the remainder.
81GF Score
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