FedEx Corporation (FDX) Fair Value & PE Analysis
Integrated Freight & Logistics · NYSE
Current Price
$308.61
PE Ratio (TTM)
16.8x
Intrinsic Value
$300.2
-2.8% margin of safety
What Is FedEx Corporation's Fair Value?
As of 2026-07-29, applying a 17.0x earnings multiple to FedEx Corporation's (FDX) earnings per share of $18.4 yields a fair value estimate of $300.2 per share, versus a market price of $308.61.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $239.2 to $370.81. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · FDX intrinsic value (DCF view)
Is FedEx Corporation (FDX) Overvalued?
At $308.61, FDX trades about 2.8% above its PE-based fair value estimate, a modest premium over the applied earnings multiple. Check whether earnings growth justifies the price.
COMPETITIVE MOAT
↑Extensive Global Network
FedEx operates a vast, integrated network of transportation and logistics infrastructure worldwide. This physical presence creates significant barriers to entry for new competitors.
↑Brand Recognition and Trust
The FedEx brand is globally recognized for reliability and speed in package delivery. This strong reputation fosters customer loyalty and reduces perceived risk for shippers.
↑Economies of Scale
The sheer volume of packages processed allows FedEx to achieve significant cost efficiencies in operations, fleet management, and technology investment. This scale is difficult for smaller players to replicate.
INVESTMENT RISKS
↓Margin Compression and Cost Recovery
Recent reports indicate challenges in recovering costs and achieving margin recovery, despite efficiency initiatives. This suggests underlying operational or pricing pressures impacting profitability.
↓Regulatory and Legal Challenges
The EEOC lawsuit alleging discrimination against blind workers highlights potential legal and reputational risks. Such issues can lead to significant fines and operational disruptions.
↓Divestiture of Supply Chain Unit
The sale of the Supply Chain unit to CMA CGM indicates a strategic shift and potential reduction in service breadth. This could impact integrated offerings and future growth avenues.
Base case
FDX base case PE valuation
Intrinsic Value
$300.2
Margin of safety
-2.8%
Expected annual return
-0.6%
Base case assumptions: 2.9% annual earnings growth, 17x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the FDX PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for FedEx Corporation respond.
Open PE Calculator for FDXCompany Overview
FedEx Corporation is a prominent global entity that delivers an extensive array of services encompassing transportation, e-commerce solutions, and diverse business support, catering to clients both within the United States and across international borders. Its operational structure is divided into several key segments: The FedEx Express division specializes in expedited shipping, offering rapid package and freight delivery, crucial time-sensitive logistics, and comprehensive cross-border, technological, and e-commerce transportation services. FedEx Ground focuses on reliable, scheduled delivery services for both commercial clients and individual households. The FedEx Freight unit manages less-than-truckload (LTL) cargo shipments, supported by a significant infrastructure that, as of May 31, 2022, included approximately 30,000 vehicles and 400 service centers. FedEx Services provides essential internal support functions across the company, such as sales, marketing, information technology, communications, customer and technical assistance, billing, collections, and other vital administrative operations. Finally, the Corporate, Other, and Eliminations segment broadens FedEx's offerings to include integrated supply chain management, specialized transportation, customs brokerage, global ocean and air freight forwarding, document and business services, and convenient retail access points for its package delivery operations. Established in 1971, FedEx Corporation maintains its headquarters in Memphis, Tennessee.
Financial Metrics — FDX PE Stock Valuation Data
PE Ratio (TTM)
16.8x
PEG Ratio
2.13
Earnings Yield
5.96%
ROE (TTM)
15.1%
Revenue/Share (TTM)
$393.03
Dividend Yield
1.53%
Debt/Equity
1.36x
Frequently Asked Questions
What is the PE ratio of FDX?
The trailing twelve-month PE ratio of FDX reflects how much investors pay per dollar of FedEx Corporation's earnings. This metric is most useful when compared to Integrated Freight & Logistics peers and the company's own historical range.
Is FDX overvalued based on PE ratio?
FDX's PE of 16.8x combined with a PEG ratio of 2.13 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Integrated Freight & Logistics, a DCF analysis may be more appropriate.
How do I value FDX stock using PE ratio?
To value FedEx Corporation using PE: (1) Compare the current PE (16.8x) against the Integrated Freight & Logistics median to assess relative pricing, (2) check the PEG ratio (2.13) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of FDX?
FDX's PEG ratio is 2.13, calculated by dividing the PE ratio (16.8x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for FDX stock valuation?
PE ratio gives a quick relative read — how FDX is priced versus Integrated Freight & Logistics peers. DCF provides an absolute value based on projected free cash flows. For FDX, with a strong ROE of 15.1%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See FDX DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Industrials valuationsP/E and DCF value FDX with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.