DCF Tool

FDX

Fedex Corp – Couriers and Express Delivery Services
fedex connects people and possibilities through our worldwide portfolio of shipping, transportation, e-commerce and business services. we offer integrated business applications through our collaboratively managed operating companies — collectively delivering extraordinary service to our customers — using the expertise and reliability represented by the fedex brand. our people are the foundation of our success, and fedex has consistently ranked among the world’s most admired and trusted employers. we inspire our global workforce of more than 400,000 employees to remain absolutely, positively focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. we owe our success as an industry leader to the more than 400,000 global team members who deliver exceptional customer service experiences day-in and day-out. want to be part of this dynamic team? check out our open positions located on the careers site on fedex.com: http://careers.va
Analysis Results
Intrinsic Value $126.48
Latest Price $246.77
Relative Value 95% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 4.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2024 1.55 1.45
2025 1.62 1.41
2026 1.69 1.38
2027 1.76 1.34
2028 1.84 1.31
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.2 billion. This corresponds to a present value of 24.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.89 billion. Adding in the terminal value gives a total present value of 31.6 billion.

There are presently 250.0 million outstanding shares, so the intrinsic value per share is 126.48.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 18,610,000,000
Current Cash 6,856,000,000
Current Liabilities 13,586,000,000
Current Debt 126,000,000
Non-Cash Working Capital (NCWC) -1,706,000,000
Change in NCWC -982,000,000
EBIT 5,338,000,000
Tax Provision 1,391,000,000
Depreciation and Amortization 4,176,000,000
Capital Expenditure -6,174,000,000
Unlevered Free Cash Flow 973,484,243
Current Assets 20,365,000,000
Current Cash 6,897,000,000
Current Liabilities 14,274,000,000
Current Debt 82,000,000
Non-Cash Working Capital (NCWC) -724,000,000
Change in NCWC -703,000,000
EBIT 6,523,000,000
Tax Provision 1,070,000,000
Depreciation and Amortization 3,970,000,000
Capital Expenditure -6,763,000,000
Unlevered Free Cash Flow 1,601,426,062
Current Assets 20,580,000,000
Current Cash 7,087,000,000
Current Liabilities 13,660,000,000
Current Debt 146,000,000
Non-Cash Working Capital (NCWC) -21,000,000
Change in NCWC -1,230,000,000
EBIT 5,973,000,000
Tax Provision 1,443,000,000
Depreciation and Amortization 3,793,000,000
Capital Expenditure -5,884,000,000
Unlevered Free Cash Flow 1,360,564,728
Current Assets 16,383,000,000
Current Cash 4,881,000,000
Current Liabilities 10,344,000,000
Current Debt 51,000,000
Non-Cash Working Capital (NCWC) 1,209,000,000
Change in NCWC -1,509,000,000
EBIT 2,852,000,000
Tax Provision 383,000,000
Depreciation and Amortization 3,615,000,000
Capital Expenditure -5,868,000,000
Unlevered Free Cash Flow -1,564,473,337
Current Assets 13,086,000,000
Current Cash 2,319,000,000
Current Liabilities 9,013,000,000
Current Debt 964,000,000
Non-Cash Working Capital (NCWC) 2,718,000,000
Change in NCWC 927,000,000
EBIT 4,786,000,000
Tax Provision 115,000,000
Depreciation and Amortization 3,353,000,000
Capital Expenditure -5,490,000,000
Unlevered Free Cash Flow 2,735,709,923
Current Assets 13,341,000,000
Current Cash 3,265,000,000
Current Liabilities 9,627,000,000
Current Debt 1,342,000,000
Non-Cash Working Capital (NCWC) 1,791,000,000
Change in NCWC 1,028,000,000
EBIT 5,240,000,000
Tax Provision -219,000,000
Depreciation and Amortization 3,095,000,000
Capital Expenditure -5,663,000,000
Unlevered Free Cash Flow 3,700,000,000
Current Assets 12,628,000,000
Current Cash 3,969,000,000
Current Liabilities 7,918,000,000
Current Debt 22,000,000
Non-Cash Working Capital (NCWC) 763,000,000
Change in NCWC 287,000,000
EBIT 5,013,000,000
Tax Provision 1,582,000,000
Depreciation and Amortization 2,995,000,000
Capital Expenditure -5,116,000,000
Unlevered Free Cash Flow 1,447,057,217
Current Assets 11,989,000,000
Current Cash 3,534,000,000
Current Liabilities 8,008,000,000
Current Debt 29,000,000
Non-Cash Working Capital (NCWC) 476,000,000
Change in NCWC -764,000,000
EBIT 4,575,000,000
Tax Provision 920,000,000
Depreciation and Amortization 2,631,000,000
Capital Expenditure -4,818,000,000
Unlevered Free Cash Flow 87,868,613
Current Assets 10,941,000,000
Current Cash 3,763,000,000
Current Liabilities 5,957,000,000
Current Debt 19,000,000
Non-Cash Working Capital (NCWC) 1,240,000,000
Change in NCWC -224,000,000
EBIT 4,333,000,000
Tax Provision 577,000,000
Depreciation and Amortization 2,611,000,000
Capital Expenditure -4,347,000,000
Unlevered Free Cash Flow 836,342,962
Current Assets 9,683,000,000
Current Cash 2,908,000,000
Current Liabilities 5,312,000,000
Current Debt 1,000,000
Non-Cash Working Capital (NCWC) 1,464,000,000
Change in NCWC 606,000,000
EBIT 3,446,000,000
Tax Provision 1,192,000,000
Depreciation and Amortization 2,587,000,000
Capital Expenditure -3,533,000,000
Unlevered Free Cash Flow 1,857,100,030
Current Assets 11,274,000,000
Current Cash 4,917,000,000
Current Liabilities 5,750,000,000
Current Debt 251,000,000
Non-Cash Working Capital (NCWC) 858,000,000
Change in NCWC -398,000,000
EBIT 3,211,000,000
Tax Provision 894,000,000
Depreciation and Amortization 2,386,000,000
Capital Expenditure -3,375,000,000
Unlevered Free Cash Flow 654,698,981
Current Assets 9,056,000,000
Current Cash 2,843,000,000
Current Liabilities 5,374,000,000
Current Debt 417,000,000
Non-Cash Working Capital (NCWC) 1,256,000,000
Change in NCWC 163,000,000
EBIT 3,320,000,000
Tax Provision 1,109,000,000
Depreciation and Amortization 2,113,000,000
Capital Expenditure -4,007,000,000
Unlevered Free Cash Flow 416,800,063

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.