DCF Tool

FDX

Fedex Corp – Couriers and Express Delivery Services
FedEx Corp. provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $75 billion, the company offers integrated business solutions through operating companies competing collectively, operating collaboratively and innovating digitally under the respected FedEx brand. Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its nearly 600,000 team members to remain focused on safety, the highest ethical and professional standards and the needs of their customers and communities.
Analysis Results
Intrinsic Value $159.72
Latest Price $170.76
Relative Value 7% overvalued
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Cash Flow (Billions)
Analysis Parameters
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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 7.3%.

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 7.3%, 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)
2023 1.81 1.7
2024 1.95 1.7
2025 2.09 1.71
2026 2.24 1.71
2027 2.41 1.72
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 49.5 billion. This corresponds to a present value of 33.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.54 billion. Adding in the terminal value gives a total present value of 41.6 billion.

There are presently 260.0 million outstanding shares, so the intrinsic value per share is 159.72.

Financial Statements

The following data was to determine the past cash flows.

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

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