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:
We started the process of determining a valid price forecast for United Parcel Service Inc with a discounted cash flow analysis -- the results of which can be found in the table below. 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 the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for United Parcel Service Inc ended up being:
The company has produced more trailing twelve month cash flow than 96.86% of its sector Industrials.
United Parcel Service Inc's weighted average cost of capital (WACC) is 8%; for context, that number is higher than merely 23.24% 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 merely 23.24% 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, CAT, FLS, ROK, and SYEV.
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