Is FedEx Corp. overvalued or undervalued?

As of 31 January 2025, FedEx Corp. has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial metrics. Key ratios include a P/E ratio of 11, a Price to Book Value of 1.97, and an EV to EBITDA of 6.77, which indicate that the stock is trading at a premium compared to its earnings and asset values.
In comparison to its peers, FedEx's P/E ratio of 11.33 is lower than that of United Parcel Service, Inc., which has a P/E of 13.64, while DoorDash, Inc. is significantly higher at 260.82. The EV to EBITDA ratio for FedEx is also higher than UPS's 8.19, suggesting that FedEx may not be as efficiently valued in terms of its earnings before interest, taxes, depreciation, and amortization. Notably, FedEx's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -18.52% compared to the index's 2.44%, reinforcing the view of overvaluation.