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 21th 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 compound growth rate in the free cash flow of United Parcel Service Inc over the past 5.76 years is -0.04%; that's better than only 22.88% of cash flow producing equities in the Industrials sector, where it is classified.
United Parcel Service Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 16.82% 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 16.82% 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 ENR, MIC, NSSC, TXT, and AP.
TuSimple launches an Autonomous Freight Network with UPS, Penske, U.S. Xpress, and McLane Co. President Cheng Lu describes the initiative as the "5G network of autonomous trucking" Autonomous trucking technology startup TuSimple announced on Wednesday the launch of a national transportation network that it says is designed to help bring self-driving trucks to market safely and efficiently. The Autonomous Freight Network (AFN) consists of self-driving trucks, digitally mapped routes, shipping terminals, and TuSimple Connect, an autonomous operations monitoring system. Partnering with TuSimple on the launch are UPS (NYSE: UPS ), Penske Truck Leasing , U.S. Xpress (NYSE: USX ), and McLane , a supply chain services company. Until now, the startup has focused primarily on its self-driving te...
United Parcel Service shares on Wednesday were climbing, buoyed by rival delivery service FedEx , which beat Wall Street's quarterly expectations. Shares of UPS, Atlanta, at last check were up 3.5% to $115.02, while FedEx, Memphis, jumped 12% to $157.11. XPO Logistics did not benefit from FedEx's good fortune.
J.P. Morgan analyst Brian Ossenbeck was impressed with the earnings “print,” saying the company delivered during tough times. “FedEx set a more constructive tone on raising the price of capacity,” wrote the analyst in a Wednesday research report. FedEx is beginning to apply residential peak surcharges after years of not doing so.