FedEx provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. This includes shipping services for the delivery of packages and freight; international trade services specializing in customs brokerage, and ocean and air freight forwarding services; international trade advisory services, such as assistance with the customs-trade partnership against terrorism program; and customs clearance services, as well as global trade data, an information tool that allows customers to track and manage imports. The company was founded in 1971 and is based in Memphis, Tennessee.
FDX Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for FDX, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Fedex Corp ranked in the 24th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for FDX, they are:
Fedex Corp's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 6.62% of tickers in our DCF set.
Relative to other stocks in its sector (Industrials), Fedex Corp has a reliance on debt greater than 62.1% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Fedex Corp? See CECE, GNRC, CLCT, CAT, and DCO.
Some of the stocks that may grab investor focus today are: Wall Street expects Brady Corp (NYSE: BRC ) to report quarterly earnings at $0.52 per share on revenue of $249.47 million before the opening bell. Brady shares gained 5.2% to $48.50 in after-hours trading. FedEx Corporation (NYSE: FDX ) reported stronger-than-expected results for its first quarter on Tuesday. FedEx shares climbed 8.1% to $255.89 in the after-hours trading session. Adobe Inc (NASDAQ: … Full story available on Benzinga.com
U.S. stock index futures rose on Wednesday as investors hoped for a pledge by the Federal Reserve to keep interest rates low for a prolonged period, with upbeat quarterly results from FedEx also boosting sentiment.
FedEx (NYSE: FDX) crushed the market’s earnings and revenue targets as the growth in e-commerce boosted the shipping volume in the first quarter of fiscal 2021. The logistics giant stated in the earnings call, “The growth that we expected to see over a period of three to five years happened in a period of three […]