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FedEx Corporation (FDX)

Company Dividend Discount ModelIndustry: Integrated Freight & LogisticsSector: Industrials

Valuation Snapshot

Stable Growth$401.15 - $1,070.87$614.59
Multi-Stage$276.74 - $302.22$289.25
Blended Fair Value$451.92
Current Price$231.07
Upside95.58%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2025202420232022202120202019201820172016
DPS14.55%19.42%5.535.204.863.272.832.802.822.211.761.14
YoY Growth--6.35%6.97%48.42%15.60%1.03%-0.59%27.66%25.59%53.79%22.03%
Dividend Yield--2.39%1.74%1.86%1.55%1.07%1.27%1.78%0.91%0.82%0.69%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)4,122.00
(-) Cash Dividends Paid (M)1,345.00
(=) Cash Retained (M)2,777.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)824.40515.25309.15
Cash Retained (M)2,777.002,777.002,777.00
(-) Cash Required (M)-824.40-515.25-309.15
(=) Excess Retained (M)1,952.602,261.752,467.85
(/) Shares Outstanding (M)242.25242.25242.25
(=) Excess Retained per Share8.069.3410.19
LTM Dividend per Share5.555.555.55
(+) Excess Retained per Share8.069.3410.19
(=) Adjusted Dividend13.6114.8915.74
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Fair Value$401.15$614.59$1,070.87
Upside / Downside73.60%165.97%363.44%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)4,122.004,389.934,675.284,979.175,302.815,647.505,816.92
Payout Ratio32.63%44.10%55.58%67.05%78.53%90.00%92.50%
Projected Dividends (M)1,345.001,936.132,598.423,338.634,164.095,082.755,380.65

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.08%9.08%9.08%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)1,758.291,774.961,791.63
Year 2 PV (M)2,143.012,183.832,225.03
Year 3 PV (M)2,500.582,572.372,645.51
Year 4 PV (M)2,832.372,941.303,053.34
Year 5 PV (M)3,139.693,291.343,448.79
PV of Terminal Value (M)54,666.3457,306.7560,048.21
Equity Value (M)67,040.3070,070.5473,212.51
Shares Outstanding (M)242.25242.25242.25
Fair Value$276.74$289.25$302.22
Upside / Downside19.76%25.18%30.79%

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