Latest Ratios: P/E Ratio 17.1x · EV/EBITDA 9.9x · ROE 33.8%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $95.1B | $84.3B | $107.9B | $135.2B | $151.4B | $188.2B | $146.7B | $101.7B | $84.9B | $104.3B | $101.7B |
| Enterprise Value | $121.5B | $110.7B | $127.5B | $158.8B | $169.3B | $203.5B | $168.5B | $124.7B | $103.4B | $125.7B | $114.7B |
| P/E Ratio → | 17.07 | 15.12 | 18.65 | 20.16 | 13.17 | 14.60 | 109.35 | 22.91 | 17.70 | 21.24 | 29.62 |
| P/S Ratio | 1.07 | 0.95 | 1.19 | 1.49 | 1.51 | 1.94 | 1.74 | 1.38 | 1.18 | 1.57 | 1.68 |
| P/B Ratio | 5.85 | 5.19 | 6.45 | 7.81 | 7.65 | 13.19 | 219.25 | 30.99 | 27.94 | 101.81 | 237.03 |
| P/FCF | 19.96 | 17.69 | 17.37 | 26.62 | 16.22 | 17.40 | 29.06 | 45.03 | 13.20 | — | 28.99 |
| P/OCF | 11.26 | 9.98 | 10.66 | 13.21 | 10.74 | 12.54 | 14.02 | 11.78 | 6.68 | 70.49 | 15.71 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.25 | 1.40 | 1.75 | 1.69 | 2.09 | 2.00 | 1.69 | 1.44 | 1.89 | 1.90 |
| EV / EBITDA | 9.95 | 9.06 | 10.37 | 12.47 | 10.48 | 12.67 | 16.00 | 12.18 | 11.14 | 12.86 | 15.73 |
| EV / EBIT | 14.34 | 13.07 | 15.35 | 16.99 | 10.91 | 11.78 | 66.66 | 19.85 | 15.68 | 16.64 | 20.92 |
| EV / FCF | — | 23.23 | 20.52 | 31.26 | 18.14 | 18.82 | 33.39 | 55.18 | 16.08 | — | 32.71 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 18.5% | 18.5% | 18.8% | 19.5% | 20.1% | 17.9% | 25.8% | 21.8% | 19.7% | 20.1% | 20.4% |
| Operating Margin | 9.6% | 9.6% | 9.6% | 10.3% | 13.0% | 13.5% | 9.3% | 10.7% | 9.8% | 11.3% | 8.4% |
| Net Profit Margin | 6.3% | 6.3% | 6.4% | 7.4% | 11.5% | 13.3% | 1.6% | 6.0% | 6.7% | 7.4% | 5.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 33.8% | 33.8% | 34.0% | 36.1% | 67.8% | 172.6% | 68.0% | 140.5% | 236.0% | 675.2% | 235.0% |
| ROA | 7.8% | 7.8% | 8.2% | 9.4% | 16.4% | 19.6% | 2.2% | 8.2% | 10.0% | 11.4% | 8.7% |
| ROIC | 16.1% | 16.1% | 16.9% | 17.9% | 28.9% | 37.8% | 24.1% | 24.7% | 24.1% | 31.3% | 27.1% |
| ROCE | 15.3% | 15.3% | 16.3% | 17.7% | 24.7% | 27.0% | 17.8% | 20.1% | 20.6% | 24.4% | 18.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 1.99 | 1.99 | 1.53 | 1.54 | 1.19 | 1.79 | 41.49 | 8.58 | 7.49 | 24.21 | 38.51 |
| Debt / EBITDA | 2.64 | 2.64 | 2.09 | 2.10 | 1.46 | 1.59 | 2.63 | 2.75 | 2.45 | 2.54 | 2.26 |
| Net Debt / Equity | — | 1.62 | 1.17 | 1.36 | 0.90 | 1.07 | 32.65 | 6.98 | 6.10 | 20.97 | 30.41 |
| Net Debt / EBITDA | 2.16 | 2.16 | 1.59 | 1.85 | 1.11 | 0.95 | 2.07 | 2.24 | 1.99 | 2.20 | 1.79 |
| Debt / FCF | — | 5.54 | 3.15 | 4.64 | 1.92 | 1.41 | 4.33 | 10.15 | 2.88 | — | 3.72 |
| Interest Coverage | 8.38 | 8.38 | 9.64 | 12.06 | 22.36 | 25.30 | 3.70 | 9.99 | 11.52 | 18.12 | 15.80 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.22 | 1.22 | 1.17 | 1.10 | 1.22 | 1.42 | 1.19 | 1.11 | 1.15 | 1.24 | 1.17 |
| Quick Ratio | 1.22 | 1.22 | 1.12 | 1.05 | 1.18 | 1.38 | 1.15 | 1.08 | 1.12 | 1.21 | 1.14 |
| Cash Ratio | 0.38 | 0.38 | 0.38 | 0.34 | 0.42 | 0.60 | 0.37 | 0.37 | 0.36 | 0.32 | 0.39 |
| Asset Turnover | — | 1.21 | 1.30 | 1.28 | 1.41 | 1.40 | 1.35 | 1.28 | 1.44 | 1.46 | 1.50 |
| Inventory Turnover | — | — | 89.39 | 78.12 | 89.94 | 111.26 | 101.05 | 113.16 | 137.16 | 131.69 | 140.83 |
| Days Sales Outstanding | — | 46.16 | 43.65 | 45.11 | 45.91 | 47.09 | 46.47 | 47.17 | 50.24 | 56.74 | 50.24 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 5.7% | 6.4% | 5.0% | 4.0% | 3.4% | 1.8% | 2.3% | 3.1% | 3.5% | 2.7% | 2.6% |
| Payout Ratio | 96.9% | 96.9% | 93.4% | 80.1% | 44.3% | 26.7% | 251.2% | 71.9% | 62.8% | 56.5% | 77.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.9% | 6.6% | 5.4% | 5.0% | 7.6% | 6.8% | 0.9% | 4.4% | 5.6% | 4.7% | 3.4% |
| FCF Yield | 5.0% | 5.7% | 5.8% | 3.8% | 6.2% | 5.7% | 3.4% | 2.2% | 7.6% | — | 3.4% |
| Buyback Yield | 1.1% | 1.2% | 0.5% | 1.7% | 2.3% | 0.3% | 0.2% | 1.0% | 1.2% | 1.7% | 2.6% |
| Total Shareholder Yield | 6.7% | 7.6% | 5.5% | 5.6% | 5.7% | 2.1% | 2.5% | 4.1% | 4.7% | 4.4% | 5.2% |
| Shares Outstanding | — | $850M | $856M | $860M | $871M | $878M | $871M | $869M | $870M | $875M | $887M |
Labor cost structure rigidity
According to current market data, UPS trades at a P/E of 16.47, which appears to discount the recent revenue contraction but may fail to fully account for the structural margin compression observed in the most recent quarterly filings compared to historical averages for the integrated logistics sector.
The forward P/E of 15.23 suggests that investors are pricing in a stabilization of earnings, yet this valuation assumes a recovery in volume that remains speculative given the current macroeconomic environment. When compared to peers like FedEx, the valuation multiple appears to be in line with the broader industry, though it lacks the premium typically associated with a high-moat industrial compounder.
Based on reported financial statements, the ROIC has trended downward to 2.4% in 2026Q1, a significant decline from the 6.1% observed in 2024Q4, which suggests that the company's massive capital base is currently failing to generate adequate returns relative to its cost of capital.
This decay in return on invested capital appears to be driven by the combination of stagnant volume and the absorption of higher labor costs, which effectively dilutes the efficiency of the integrated network. Investors should monitor whether the ongoing automation initiatives can reverse this trend or if the capital intensity of the business model has become a permanent drag on shareholder value.
As indicated by the quarterly data, the asset turnover ratio has remained suppressed at 0.29 in 2026Q1, reflecting the difficulty of optimizing a high-fixed-cost network during periods of declining volume and the resulting underutilization of the company's extensive fleet and sorting infrastructure.
The lack of improvement in asset turnover suggests that the company is struggling to shed costs in proportion to the revenue decline, which creates a persistent drag on operational efficiency. The variability in the cash conversion cycle further implies that management is facing challenges in balancing customer payment terms with the rigid demands of its labor-intensive supply chain.
According to recent SEC filings, the interest coverage ratio has compressed to 4.76 in 2026Q1, down from 11.01 in 2023Q4, which indicates that the company's ability to service its debt obligations is becoming less comfortable as operating income faces sustained downward pressure from labor cost inflation.
While the debt-to-equity ratio of 1.59 remains manageable in a historical context, the rapid deterioration of interest coverage warrants caution regarding the company's financial flexibility. The reliance on debt to bridge cash flow gaps during this period of volume normalization suggests that the balance sheet is no longer the fortress it once was.
The P/E ratio is frequently misapplied to UPS, as it obscures the massive non-cash pension accounting swings and the impact of fuel surcharges that artificially inflate revenue, making EV/EBITDA a more reliable metric for assessing the true operational performance of this capital-intensive business model.
Using P/E ignores the significant depreciation and amortization inherent in a global logistics network, which can lead to a distorted view of profitability. Analysts should instead focus on EV/EBITDA to normalize for capital structure differences and the non-cash accounting noise that frequently clouds the company's reported net income.
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying UPS stock.
United Parcel Service, Inc.'s current P/E ratio is 17.1x. The historical average is 36.6x. This places it at the 11th percentile of its historical range.
United Parcel Service, Inc.'s current EV/EBITDA is 9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.4x.
United Parcel Service, Inc.'s return on equity (ROE) is 33.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 65.0%.
Based on historical data, United Parcel Service, Inc. is trading at a P/E of 17.1x. This is at the 11th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
United Parcel Service, Inc.'s current dividend yield is 5.67% with a payout ratio of 96.9%.
United Parcel Service, Inc. has 18.5% gross margin and 9.6% operating margin.
United Parcel Service, Inc.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.