Integrated Freight & Logistics · NYSE
Current Price
$388.59
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on FedEx Corporation with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
Open DCF Calculator for FDXFedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. The company's FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; time-critical transportation services; and cross-border enablement, technology, and e-commerce transportation solutions. Its FedEx Ground segment provides day-certain delivery services to businesses and residences. The company's FedEx Freight segment offers less-than-truckload freight transportation services. As of May 31, 2022, this segment had approximately 30,000 vehicles and 400 service centers. Its FedEx Services segment provides sales, marketing, information technology, communications, customer service, technical support, billing and collection, and back-office support services. The company's Corporate, Other and Eliminations segment offers integrated supply chain management solutions, specialty transportation, customs brokerage, and global ocean and air freight forwarding services; and document and business services, as well as retail access to its customers for its package transportation businesses. FedEx Corporation was founded in 1971 and is based in Memphis, Tennessee.
ROIC (TTM)
5.5%
ROE (TTM)
15.8%
FCF Yield
4.71%
Based on trailing twelve-month data, FDX shows a free cash flow per share of N/A and a ROIC of 5.5%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 4.71% are important context metrics when evaluating FDX's stock valuation relative to peers.
The intrinsic value of FDX depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether FDX is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $388.59. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on FedEx Corporation: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Integrated Freight & Logistics industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting FDX's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For FedEx Corporation, this means projecting how much free cash flow the Integrated Freight & Logistics will produce over the next 5-10 years, then discounting those amounts to today's dollars. FDX's ROIC of 5.5% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For FDX, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
