Stock Analysis on Net

United Parcel Service Inc. (NYSE:UPS)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

United Parcel Service Inc., EBITDA calculation

US$ in millions

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12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income 5,782 6,708 11,548 12,890 1,343
Add: Income tax expense 1,660 1,865 3,277 3,705 501
Earnings before tax (EBT) 7,442 8,573 14,825 16,595 1,844
Add: Interest expense 866 785 704 694 701
Earnings before interest and tax (EBIT) 8,308 9,358 15,529 17,289 2,545
Add: Depreciation and amortization 3,609 3,366 3,188 2,953 2,698
Earnings before interest, tax, depreciation and amortization (EBITDA) 11,917 12,724 18,717 20,242 5,243

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. United Parcel Service Inc. EBITDA decreased from 2022 to 2023 and from 2023 to 2024.

Enterprise Value to EBITDA Ratio, Current

United Parcel Service Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 108,659
Earnings before interest, tax, depreciation and amortization (EBITDA) 11,917
Valuation Ratio
EV/EBITDA 9.12
Benchmarks
EV/EBITDA, Competitors1
FedEx Corp. 6.59
Uber Technologies Inc. 29.00
Union Pacific Corp. 13.68
United Airlines Holdings Inc. 4.37
EV/EBITDA, Sector
Transportation 11.06
EV/EBITDA, Industry
Industrials 16.52

Based on: 10-K (reporting date: 2024-12-31).

1 Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

United Parcel Service Inc., historical EV/EBITDA calculation, comparison to benchmarks

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Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 113,580 142,938 165,335 193,224 158,463
Earnings before interest, tax, depreciation and amortization (EBITDA)2 11,917 12,724 18,717 20,242 5,243
Valuation Ratio
EV/EBITDA3 9.53 11.23 8.83 9.55 30.22
Benchmarks
EV/EBITDA, Competitors4
FedEx Corp. 8.12 7.59 7.33 8.22 10.09
Uber Technologies Inc. 31.61 45.37 227.40
Union Pacific Corp. 14.16 15.44 12.56 15.46 15.65
United Airlines Holdings Inc. 5.22 4.11 6.23 21.49
EV/EBITDA, Sector
Transportation 12.05 13.12 13.09 12.72 50.43
EV/EBITDA, Industry
Industrials 17.18 14.82 16.44 16.30 30.80

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 See details »

2 See details »

3 2024 Calculation
EV/EBITDA = EV ÷ EBITDA
= 113,580 ÷ 11,917 = 9.53

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. United Parcel Service Inc. EV/EBITDA ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.