United Parcel Services provides package delivery, transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The company was founded in 1907 and is based in Atlanta, Georgia.
UPS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for UPS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that United Parcel Service Inc ranked in the 25th percentile in terms of potential gain offered. We should note, though, that all scenearios modelled for this stock suggest it is overvalued. As for the metrics that stood out in our discounted cash flow analysis of United Parcel Service Inc, consider:
The company has produced more trailing twelve month cash flow than 96.84% of its sector Industrials.
United Parcel Service Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than only 23.42% of tickers in our DCF set.
UPS's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than only 23.42% of tickers in our DCF set.
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 United Parcel Service Inc? See DCO, FLS, IEA, KNL, and CAT.
In an early Monday morning note, KeyBanc Capital Markets calls UPS (UPS) the preferred way to play e-commerce/parcel delivery exposure. The firm expects UPS CEO Carol Tomé to deliver a steady stream of favorable commentary around yield, efficiency and capital deployment initiatives. UPS is now rated at Overweight at KeyBanc...
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