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FedExBUE:FDX -1.20%63 5-Year Yield-on-Cost % is 3.89 as of Jul. 19, 2026, which is 14% below its 10-year median of 4.54. GuruFocus rates BUE:FDX with a GF Score™ of 63/100 and a GF Value™ of ARS35,675.33 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 660 Transportation companies, FedEx ranks better than 52.58% on this metric.
FedEx's yield on cost for the quarter that ended in May. 2026 was 3.89.
The historical rank and industry rank for FedEx's 5-Year Yield-on-Cost % or its related term are showing as below:
BUE:FDX'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.79 Med: 4.54 Max: 9.16
Current: 3.89
During the past 13 years, FedEx's highest Yield on Cost was 9.16. The lowest was 1.79. And the median was 4.54.
BUE:FDX's 5-Year Yield-on-Cost % is ranked better than 52.58% of 660
companies
in the Transportation industry
Industry Median: 4.135
vs BUE:FDX: 3.89
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
FedEx 5-Year Yield-on-Cost % Related Terms
BUE:FDX vs UPS, JBHT, FDXF: 5-Year Yield-on-Cost % Comparison
For the Integrated Freight & Logistics subindustry, FedEx's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Transportation Industry
For the Transportation industry and Industrials sector, FedEx's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where FedEx's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Therefore, Yield-on-Cost of FedEx is calculated as
FedEx (BUE:FDX) has a 5-Year Yield-on-Cost % of 3.89 as of Jul. 19, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on FedEx and its competitors. This is 14% below median its historical median of 4.54. Over the past decade, FedEx's 5-Year Yield-on-Cost % has ranged from 1.79 to 9.16. According to the industry distribution chart, FedEx ranks #313 out of 660 companies in the Transportation industry, placing it in the top 47.4%.
Is FedEx's 5-Year Yield-on-Cost % too high?
FedEx's current 5-Year Yield-on-Cost % of 3.89 is 14% below median its 10-year median of 4.54. Over the past 10 years, this metric has ranged from a low of 1.79 to a high of 9.16. The Transportation industry median 5-Year Yield-on-Cost % is 4.14. FedEx's value of 3.89 is 5.9% below this industry median. Based on the distribution chart, FedEx ranks #313 out of 660 companies in the Transportation industry, which is above the industry midpoint. Overall, FedEx has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does FedEx's 5-Year Yield-on-Cost % compare to UPS and JBHT?
According to the Transportation industry distribution chart, FedEx ranks #313 out of 660 companies for 5-Year Yield-on-Cost %. This puts FedEx in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 4.14. FedEx's value of 3.89 is 5.9% below this benchmark. Historically, FedEx's own 5-Year Yield-on-Cost % has ranged from 1.79 to 9.16 over the past decade. While the company's 10-year median is 4.54 vs. the industry median of 4.14, FedEx has consistently been below 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 5-Year Yield-on-Cost % for a Transportation company?
The median 5-Year Yield-on-Cost % among Transportation companies is 4.14, based on 660 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. FedEx's current 5-Year Yield-on-Cost % of 3.89 is 5.9% below 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on FedEx and its competitors. For the Transportation industry, the median 5-Year Yield-on-Cost % is 4.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FedEx's current 5-Year Yield-on-Cost % is 3.89, which is 14% below median its own 10-year median of 4.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FedEx stock overvalued right now?
Based on GuruFocus' analysis, FedEx (BUE:FDX) is currently considered Significantly Overvalued. The stock's GF Value™ is ARS35,675.33, compared to a current price of ARS49,260.00 — trading 38.1% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.89, which is 14% below median its 10-year median of 4.54 and 5.9% below the Transportation industry median of 4.14. FedEx's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For FedEx (BUE:FDX), the current 5-Year Yield-on-Cost % is 3.89 as of Jul. 19, 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 FedEx (BUE:FDX) Overvalued in 2026?
Based on GuruFocus' analysis, FedEx stock appears to be overvalued.
The current stock price of ARS49,260.00 is trading 38.1% above its estimated GF Value™ of ARS35,675.33.
GuruFocus considers FedEx to be Significantly Overvalued.
Key valuation signals for BUE:FDX:
5-Year Yield-on-Cost %: 3.89 (14% below median its 10-year median of 4.54)
GF Value™: ARS35,675.33 vs. price of ARS49,260.00 (38.1% above fair value)
Industry Position: 5.9% below the Transportation median (#313 of 660)
No single metric tells the full story. See the BUE:FDX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FedEx pioneered overnight delivery in 1973 and remains the world's largest express package provider. Following the June 2026 spinoff of FedEx Freight (less-than-truckload shipping), the firm's Federal Express segment—which houses the core package delivery operations—makes up more than 95% of total revenue (previously 87%). The remainder stems 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, boosting its presence across Europe. TNT was previously the fourth-largest global parcel delivery provider.
63GF Score
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