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What do the Fundamentals Predict for United Parcel Service, Inc. (UPS) Stock?

Monday, December 06, 2021 02:31 PM | InvestorsObserver Analysts
What do the Fundamentals Predict for United Parcel Service, Inc. (UPS) Stock?

United Parcel Service, Inc. (UPS) receives a strong valuation ranking of 78 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. UPS has a better value than 78% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 78
UPS gets a 78 Valuation Rank today. Find out what this means to you and get the rest of the rankings on UPS!

Metrics Analysis

UPS has a trailing twelve month Price to Earnings (PE) ratio of 27.4 which places it above the histroical average of roughly 15. UPS is currently trading at a poor value due to investors paying more than what the stock is worth in relation to its earnings. UPS's trailing-12-month earnings per share (EPS) of 7.32 does not justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far. UPS's 12-month-forward PE to Growth (PEG) ratio of 1.39 is considered a poor value as the market is overvaluing UPS in relation to the company's projected earnings growth due. UPS's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.


All together these valuation metrics paint a pretty poor picture for UPS at its current price due to a overvalued PEG ratio despite strong growth. The PE and PEG for UPS are worse than the average of the market resulting in a valuation score of 78. Click Here to get the full Report on United Parcel Service, Inc. (UPS) stock.

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