How FedEx Is Valued after Fourth-Quarter Earnings
For valuation purposes, we have considered the forward PE (price-to-earnings) ratio. The forward PE multiple implies the dollars payable today for every dollar of earnings per share in the future. FedEx (FDX) can’t be exactly compared with LTL (less-than-truckload) companies (XTN). However, we have considered these carriers due to the proximity of their business models. Along with FedEx, the LTL companies have benefitted from e-commerce growth in the recent past.