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UPS (United Parcel Service) PE Ratio : 21.83 (As of Oct. 31, 2024)


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What is United Parcel Service PE Ratio?

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2024-10-31), United Parcel Service's share price is $133.80. United Parcel Service's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $6.13. Therefore, United Parcel Service's PE Ratio for today is 21.83.

During the past 13 years, United Parcel Service's highest PE Ratio was 103.31. The lowest was 12.47. And the median was 20.42.

United Parcel Service's EPS (Diluted) for the three months ended in Jun. 2024 was $1.65. Its EPS (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 was $6.13.

As of today (2024-10-31), United Parcel Service's share price is $133.80. United Parcel Service's EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $7.45. Therefore, United Parcel Service's PE Ratio without NRI ratio for today is 17.96.

During the past 13 years, United Parcel Service's highest PE Ratio without NRI was 27.84. The lowest was 12.95. And the median was 18.81.

United Parcel Service's EPS without NRI for the three months ended in Jun. 2024 was $1.79. Its EPS without NRI for the trailing twelve months (TTM) ended in Jun. 2024 was $7.45.

During the past 12 months, United Parcel Service's average EPS without NRI Growth Rate was -35.10% per year. During the past 3 years, the average EPS without NRI Growth Rate was 14.60% per year. During the past 5 years, the average EPS without NRI Growth Rate was 12.80% per year. During the past 10 years, the average EPS without NRI Growth Rate was 10.00% per year.

During the past 13 years, United Parcel Service's highest 3-Year average EPS without NRI Growth Rate was 129.00% per year. The lowest was -54.20% per year. And the median was 9.60% per year.

United Parcel Service's EPS (Basic) for the three months ended in Jun. 2024 was $1.65. Its EPS (Basic) for the trailing twelve months (TTM) ended in Jun. 2024 was $6.14.

Back to Basics: PE Ratio


United Parcel Service PE Ratio Historical Data

The historical data trend for United Parcel Service's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

United Parcel Service PE Ratio Chart

United Parcel Service Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
PE Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 22.91 109.35 14.60 13.17 20.16

United Parcel Service Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
PE Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.78 20.16 21.54 22.32 At Loss

Competitive Comparison of United Parcel Service's PE Ratio

For the Integrated Freight & Logistics subindustry, United Parcel Service's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


United Parcel Service's PE Ratio Distribution in the Transportation Industry

For the Transportation industry and Industrials sector, United Parcel Service's PE Ratio distribution charts can be found below:

* The bar in red indicates where United Parcel Service's PE Ratio falls into.



United Parcel Service PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

United Parcel Service's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=133.80/6.130
=21.83

United Parcel Service's Share Price of today is $133.80.
United Parcel Service's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $6.13.


* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio, Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


United Parcel Service  (NYSE:UPS) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio.

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


United Parcel Service PE Ratio Related Terms

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United Parcel Service Business Description

Address
55 Glenlake Parkway, N.E. Atlanta, Atlanta, GA, USA, 30328
As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe. UPS' domestic US package operations generate around 64% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder. UPS is currently pursuing "strategic alternatives" for its truck brokerage unit, Coyote, which it acquired in 2015.
Executives
William R Johnson director UNITED PARCEL SERVICE, INC., 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Eva C Boratto director 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Nando Cesarone officer: President, UPS International 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Laura J Lane officer: Chief Corp Affairs & Comms Off 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Brian Newman officer: Chief Financial Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Brothers Norman M. Jr officer: Sr VP, Gen Counsel & Sec 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Darrell L Ford officer: Chief Human Resources Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kathleen M. Gutmann officer: Senior Vice President 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Kevin M Warren officer: Chief Marketing Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Bala Subramanian officer: Chief Digital & Tech Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Philippe R Gilbert officer: Pres, Supply Chain Solutions 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Juan R. Perez officer: Senior Vice President 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Scott A. Price officer: Chief Transformation Officer 55 GLENLAKE PARKWAY, NE, ATLANTA GA 30328
Russell Stokes director ONE FINANCIAL CENTER, SUITE 3700, BOSTON MA 02111
Wayne M. Hewett director 5 WESTBROOK CORPORATE CENTER, WESTCHESTER IL 60154