How does it rank on fundamental metrics?
Investors Observer gives FedEx Corporation (FDX) a strong evaluation score of 95 based on its analysis. The proprietary rating system takes into account the underlying health of a company by analyzing its stock price, earnings and rate of growth. FDX currently holds a better value than 95% of the shares based on these metrics. Long-term buy and hold investors should find the most relevant valuation ranking system when making investment decisions.
FDX has a 12-month price-to-earnings (PE) ratio of 11.6. The historical average of around 15 shows an average value for FDX stocks as investors pay fair prices to the company’s earnings. FDX’s average PE ratio shows that the company has recently traded around its fair market value. Its 12-month earnings per share (EPS) of 18.84 justifies the current share price. However, leakage PE ratios do not take into account the company’s projected growth rate, so many newer companies have high PE ratios due to high growth potential attracting investors despite insufficient profits. FDX has a 12 Month PE Forward Growth (PEG) ratio of 0.93. The markets are overstating FDX relative to its projected growth, as its PEG ratio is currently above fair market value of 1. The PEG of 18.8400001 comes from the fact that its forward price / earnings ratio is divided by its growth rate. PEG ratios are one of the most used valuation metrics due to the incorporation of more fundamental business metrics and the focus on the future of the business rather than its past.
FDX’s valuation measures are adequate at its current price due to a fairly valued PEG ratio despite strong growth. FDX’s PE and PEG are around the market average, resulting in an average valuation score. Click here for the full FedEx Corporation (FDX) Stock Report.