Is FedEx Corp. overvalued or undervalued?

As of 7 July 2025, the valuation grade for FedEx Corp. changed from very expensive to expensive, indicating a slight improvement in its valuation outlook. Despite this change, the company is still considered overvalued. Key valuation ratios include a P/E ratio of 11, an EV to EBITDA of 6.77, and a Price to Book Value of 1.97. In comparison, United Parcel Service, Inc. shows a more attractive P/E of 11.72 and an EV to EBITDA of 7.30, while DoorDash, Inc. is significantly more expensive with a P/E of 130.80.
FedEx's recent stock performance has lagged behind the S&P 500, with a year-to-date return of -19.49% compared to the index's 12.22%. This underperformance reinforces the notion that the stock may be overvalued in the current market context.