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FedEx (FDX) PE Ratio : 17.80 (As of Jul. 19, 2024)


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What is FedEx PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-07-19), FedEx's share price is $306.62. FedEx's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2024 was $17.23. Therefore, FedEx's PE Ratio for today is 17.80.

During the past 13 years, FedEx's highest PE Ratio was 788.90. The lowest was 8.61. And the median was 21.28.

FedEx's EPS (Diluted) for the three months ended in May. 2024 was $5.94. Its EPS (Diluted) for the trailing twelve months (TTM) ended in May. 2024 was $17.23.

As of today (2024-07-19), FedEx's share price is $306.62. FedEx's EPS without NRI for the trailing twelve months (TTM) ended in May. 2024 was $17.79. Therefore, FedEx's PE Ratio without NRI ratio for today is 17.23.

During the past 13 years, FedEx's highest PE Ratio without NRI was 26.55. The lowest was 7.86. And the median was 16.15.

FedEx's EPS without NRI for the three months ended in May. 2024 was $5.41. Its EPS without NRI for the trailing twelve months (TTM) ended in May. 2024 was $17.79.

During the past 12 months, FedEx's average EPS without NRI Growth Rate was 6.50% per year. During the past 3 years, the average EPS without NRI Growth Rate was -5.30% per year. During the past 5 years, the average EPS without NRI Growth Rate was 38.90% per year. During the past 10 years, the average EPS without NRI Growth Rate was 12.10% per year.

During the past 13 years, FedEx's highest 3-Year average EPS without NRI Growth Rate was 70.90% per year. The lowest was -33.90% per year. And the median was 12.20% per year.

FedEx's EPS (Basic) for the three months ended in May. 2024 was $5.94. Its EPS (Basic) for the trailing twelve months (TTM) ended in May. 2024 was $17.36.

Back to Basics: PE Ratio


FedEx PE Ratio Historical Data

The historical data trend for FedEx's PE Ratio can be seen below:

* 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.

* Premium members only.

FedEx PE Ratio Chart

FedEx Annual Data
Trend May15 May16 May17 May18 May19 May20 May21 May22 May23 May24
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.64 16.19 15.67 14.08 14.76

FedEx Quarterly Data
Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24
PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.08 15.92 15.33 14.36 14.76

Competitive Comparison of FedEx's PE Ratio

For the Integrated Freight & Logistics subindustry, FedEx's PE Ratio, along with its competitors' market caps and PE Ratio 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.


FedEx's PE Ratio Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, FedEx's PE Ratio distribution charts can be found below:

* The bar in red indicates where FedEx's PE Ratio falls into.



FedEx PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

FedEx's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=306.62/17.230
=17.8

FedEx's Share Price of today is $306.62.
FedEx's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in May. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $17.23.


* 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.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


FedEx  (NYSE:FDX) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


FedEx PE Ratio Related Terms

Thank you for viewing the detailed overview of FedEx's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


FedEx (FDX) Business Description

Address
942 South Shady Grove Road, Memphis, TN, USA, 38120
FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. In its fiscal 2023, which ended May 2023, FedEx derived 47% of revenue from its express division, 37% from ground, and 11% from freight, its asset-based less-than-truckload shipping segment. The remainder comes from other services, including FedEx Office, which provides document production/shipping, and FedEx Logistics, which provides global forwarding. FedEx acquired Dutch parcel delivery firm TNT Express in 2016. TNT was previously the fourth-largest global parcel delivery provider.
Executives
John W Dietrich officer: EVP CHIEF FINANCIAL OFF
Amy B Lane director 1626 EAST JEFFERSON ST, ROCKVILLE MD 20852
Erwin Guy M Ii officer: STAFF VP INT PRIN ACCT OFFICER 942 S SHADY GROVE ROAD, MEMPHIS TN 38120
Jennifer L Johnson officer: CVP PRIN ACCT OFFICER 942 S. SHADY GROVE ROAD, MEMPHIS TN 38120
Michael C. Lenz officer: EVP CHIEF FINANCIAL OFF 942 S. SHADY GROVE ROAD, MEMPHIS TN 38120
Robert B Carter officer: EVP CHIEF INFO OFFICER 942 S SHADY GROVE RD, MEMPHIS TN 38120
Tracy B Brightman officer: EVP - Chief People Officer 942 S SHADY GROVE ROAD, MEMPHIS TN 38120
Stephen E Gorman director 370 KNOLLWOOD STREET, SUITE 500, WINSTON SALEM NC 27103
Susan C Schwab director 2101 VAN MUNCHING HALL, COLLEGE PARK MD 20742
Richard W Smith officer: President/CEO FedEx Express 3610 HACKS CROSS ROAD, BUILDING A 3RD FLOOR, MEMPHIS TN 38125
Frederick W Smith director, officer: CHAIRMAN OF THE BOARD 942 S SHADY GROVE RD, MEMPHIS TN 38120
Brie Carere officer: EVP/Chief Mkt & Comm Officer 942 S. SHADY GROVE ROAD, MEMPHIS TN 38120
David P Steiner director 1001 FANNIN ST, STE 4000, HOUSTON TX 77002
R Brad Martin director
Paul S Walsh director 8 HENRIETTA PLACE, LONDON X0 94111

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