UPS Relative Valuation
UPS's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, UPS is overvalued; if below, it's undervalued.
Historical Valuation
United Parcel Service Inc (UPS) is now in the Undervalued zone, suggesting that its current forward PE ratio of 14.30 is considered Undervalued compared with the five-year average of 16.23. The fair price of United Parcel Service Inc (UPS) is between 116.18 to 141.58 according to relative valuation methord. Compared to the current price of 94.76 USD , United Parcel Service Inc is Undervalued By 18.44%.
Relative Value
Fair Zone
116.18-141.58
Current Price：94.76
18.44%
Undervalued
13.79
PE
1Y
3Y
5Y
Trailing
Forward
8.67
EV/EBITDA
United Parcel Service Inc. (UPS) has a current EV/EBITDA of 8.67. The 5-year average EV/EBITDA is 10.79. The thresholds are as follows: Strongly Undervalued below 7.67, Undervalued between 7.67 and 9.23, Fairly Valued between 12.35 and 9.23, Overvalued between 12.35 and 13.91, and Strongly Overvalued above 13.91. The current Forward EV/EBITDA of 8.67 falls within the Undervalued range.
12.45
EV/EBIT
United Parcel Service Inc. (UPS) has a current EV/EBIT of 12.45. The 5-year average EV/EBIT is 14.08. The thresholds are as follows: Strongly Undervalued below 10.30, Undervalued between 10.30 and 12.19, Fairly Valued between 15.97 and 12.19, Overvalued between 15.97 and 17.85, and Strongly Overvalued above 17.85. The current Forward EV/EBIT of 12.45 falls within the Historic Trend Line -Fairly Valued range.
0.95
PS
United Parcel Service Inc. (UPS) has a current PS of 0.95. The 5-year average PS is 1.44. The thresholds are as follows: Strongly Undervalued below 0.83, Undervalued between 0.83 and 1.14, Fairly Valued between 1.75 and 1.14, Overvalued between 1.75 and 2.05, and Strongly Overvalued above 2.05. The current Forward PS of 0.95 falls within the Undervalued range.
9.35
P/OCF
United Parcel Service Inc. (UPS) has a current P/OCF of 9.35. The 5-year average P/OCF is 11.31. The thresholds are as follows: Strongly Undervalued below 7.91, Undervalued between 7.91 and 9.61, Fairly Valued between 13.02 and 9.61, Overvalued between 13.02 and 14.72, and Strongly Overvalued above 14.72. The current Forward P/OCF of 9.35 falls within the Undervalued range.
15.14
P/FCF
United Parcel Service Inc. (UPS) has a current P/FCF of 15.14. The 5-year average P/FCF is 18.97. The thresholds are as follows: Strongly Undervalued below 6.39, Undervalued between 6.39 and 12.68, Fairly Valued between 25.26 and 12.68, Overvalued between 25.26 and 31.55, and Strongly Overvalued above 31.55. The current Forward P/FCF of 15.14 falls within the Historic Trend Line -Fairly Valued range.
United Parcel Service Inc (UPS) has a current Price-to-Book (P/B) ratio of 5.26. Compared to its 3-year average P/B ratio of 6.68 , the current P/B ratio is approximately -21.15% higher. Relative to its 5-year average P/B ratio of 19.56, the current P/B ratio is about -73.09% higher. United Parcel Service Inc (UPS) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 4.90%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 5.08% , the current FCF yield is about -100.00% lower.
5.08
P/B
Median3y
6.68
Median5y
19.56
5.28
FCF Yield
Median3y
4.90
Median5y
5.08
Competitors Valuation Multiple
The average P/S ratio for UPS's competitors is , providing a benchmark for relative valuation. United Parcel Service Inc Corp (UPS) exhibits a P/S ratio of , which is NaN% above the industry average. Given its robust revenue growth of -3.73%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of UPS decreased by 23.78% over the past 1 year. The primary factor behind the change was an decrease in Revenue Growth from 22.25B to 21.42B.
The secondary factor is the P/E Change, contributed -8.49%to the performance.
Overall, the performance of UPS in the past 1 year is driven by Revenue Growth. Which is more sustainable.
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