Latest Ratios: P/E Ratio 20.9x · EV/EBITDA 11.0x · 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 | $92.0B | $84.3B | $107.9B | $135.2B | $151.4B | $188.2B | $146.7B | $101.7B | $84.9B | $104.3B | $101.7B |
| Enterprise Value | $114.7B | $107.0B | $127.5B | $158.8B | $169.3B | $203.5B | $168.5B | $124.7B | $103.4B | $125.7B | $114.7B |
| P/E Ratio → | 20.87 | 15.12 | 18.65 | 20.16 | 13.17 | 14.60 | 109.35 | 22.91 | 17.70 | 21.24 | 29.62 |
| P/S Ratio | 1.01 | 0.95 | 1.19 | 1.49 | 1.51 | 1.94 | 1.74 | 1.38 | 1.18 | 1.57 | 1.68 |
| P/B Ratio | 5.66 | 5.19 | 6.45 | 7.81 | 7.65 | 13.19 | 219.25 | 30.99 | 27.94 | 101.81 | 237.03 |
| P/FCF | 14.42 | 17.69 | 17.37 | 26.62 | 16.22 | 17.40 | 29.06 | 45.03 | 13.20 | — | 28.99 |
| P/OCF | 10.89 | 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 | — | 1.21 | 1.40 | 1.75 | 1.69 | 2.09 | 2.00 | 1.69 | 1.44 | 1.89 | 1.90 |
| EV / EBITDA | 11.01 | 9.22 | 10.37 | 12.47 | 10.48 | 12.67 | 16.00 | 12.18 | 11.14 | 12.86 | 15.73 |
| EV / EBIT | 14.58 | 13.08 | 15.35 | 16.99 | 10.91 | 11.78 | 66.66 | 19.85 | 15.68 | 16.64 | 20.92 |
| EV / FCF | — | 22.46 | 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 | 18.1% | 18.1% | 18.8% | 19.5% | 20.1% | 17.9% | 25.8% | 21.8% | 19.7% | 20.1% | 20.4% |
| Operating Margin | 8.9% | 8.9% | 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 | 15.7% | 15.7% | 16.9% | 17.9% | 28.9% | 37.8% | 24.1% | 24.7% | 24.1% | 31.3% | 27.1% |
| ROCE | 14.2% | 14.2% | 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 | 1.76 | 1.76 | 1.53 | 1.54 | 1.19 | 1.79 | 41.49 | 8.58 | 7.49 | 24.21 | 38.51 |
| Debt / EBITDA | 2.46 | 2.46 | 2.09 | 2.10 | 1.46 | 1.59 | 2.63 | 2.75 | 2.45 | 2.54 | 2.26 |
| Net Debt / Equity | — | 1.40 | 1.17 | 1.36 | 0.90 | 1.07 | 32.65 | 6.98 | 6.10 | 20.97 | 30.41 |
| Net Debt / EBITDA | 1.95 | 1.95 | 1.59 | 1.85 | 1.11 | 0.95 | 2.07 | 2.24 | 1.99 | 2.20 | 1.79 |
| Debt / FCF | — | 4.76 | 3.15 | 4.64 | 1.92 | 1.41 | 4.33 | 10.15 | 2.88 | — | 3.72 |
| Interest Coverage | 8.09 | 8.09 | 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 | 1.17 | 1.17 | 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 | 98.28 | 98.28 | 89.39 | 78.12 | 89.94 | 111.26 | 101.05 | 113.16 | 137.16 | 131.69 | 140.83 |
| Days Sales Outstanding | — | 46.15 | 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 | 5.9% | 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 | 4.8% | 6.6% | 5.4% | 5.0% | 7.6% | 6.8% | 0.9% | 4.4% | 5.6% | 4.7% | 3.4% |
| FCF Yield | 6.9% | 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 | 7.0% | 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 |
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 20.9x. The historical average is 36.6x. This places it at the 41th percentile of its historical range.
United Parcel Service, Inc.'s current EV/EBITDA is 11.0x. 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 20.9x. This is at the 41th 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 5.86% with a payout ratio of 96.9%.
United Parcel Service, Inc. has 18.1% gross margin and 8.9% operating margin.
United Parcel Service, Inc.'s Debt/EBITDA ratio is 2.5x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Rising leverage with revenue erosion
Metrics are mathematically derived from official filings.
Discounted Multiples Price in Cyclical Trough
Based on reported figures, UPS trades at a 16.92 trailing P/E and 10.40 EV/EBITDA, below Old Dominion and XPO but roughly in line with FedEx, implying the market prices in persistent volume erosion rather than a margin recovery.
The forward P/E of 15.30 and PEG of 0.50 suggest the market expects earnings to hold near current levels while revenue declines, which warrants scrutiny of whether that expectation is too pessimistic or appropriately cautious. The 5.7% dividend yield provides meaningful income support, but with price-to-book at 5.81 and a debt-heavy capital structure, investors should monitor whether the multiple compresses further if operating margins remain in the 4-8% range seen in recent quarters.
Margin Recovery Stalls Below Peer Benchmarks
As reported in financial statements, UPS operating margin has ranged from roughly 4% to 11% over ten quarters, with the latest quarter at 7.6%, well short of the 24.8% operating margin cited for Old Dominion.
The gap between UPS and asset-light LTL peers largely reflects its fixed-cost network and unionized labor base, which appears structural rather than purely cyclical. The Q3 2026 net margin of 5.1% sits below the 6.0-8.0% band seen through 2024 and 2025, suggesting that the EPS beat is not yet translating into durable profitability. Investors should treat the quarterly gross margin swing from 13.3% to 21.5% as a function of seasonal mix rather than a clear inflection.
Returns Compressing as Equity Base Erodes
According to recent SEC filings, UPS ROIC has fallen from a 6.1% peak in Q4 2024 to 3.4% in Q3 2026, while ROE compressed alongside a shrinking equity base of roughly $15.0B.
The decline in ROIC appears driven primarily by margin compression rather than asset turnover, given asset turnover has held steady near 0.30-0.36. Returns remain well below the 23.6% ROIC reported for Old Dominion, which suggests the capital-intensive network is absorbing investment without commensurate earnings. Whether returns recover likely depends on management's ability to restore margins through yield and healthcare mix rather than volume growth.
Debt Burden Rising Faster Than Earnings Power
Based on reported quarterly figures, UPS debt-to-equity has risen from 1.53 to 2.02 over ten quarters, and debt-to-EBITDA climbed to 11.18, indicating leverage expanding faster than operating earnings.
Interest coverage fell to a low point near 1.00 in Q2 2026 before partially recovering, which warrants close monitoring given the reliance on fixed-cost operations. The combination of rising debt, declining equity, and falling retained earnings suggests refinancing and funding automation capex may become more constraining if revenue declines continue. Investors should verify the 1.99 D/E figure in the supplied data against the latest 10-K, as it differs from the trend shown in the quarterly series.
Adequate Near-Term Liquidity, Thin Buffer
As reported in financial statements, UPS current ratio of 1.24 and $6.8B in cash at Q3 2026 provide a modest liquidity cushion, though cash has swung between $4.7B and $6.8B across recent quarters.
The current ratio sits close to 1.0 and quick ratio equals current ratio, suggesting limited dependence on inventory, which is consistent with a service business. Under a severe volume shock, the fixed-cost base would likely pressure cash generation quickly, so the current liquidity position may only be adequate for a moderate downturn. Investors should monitor whether operating cash flow remains positive enough to sustain the dividend without additional borrowing.
Cash Strength May Overstate Durability
Based on reported figures, the $2.4B latest-quarter free cash flow and 10.5% FCF margin coincide with a revenue decline and operating margins near 4-8%, a pairing that may overstate the sustainability of current cash generation.
The most commonly misapplied ratio here is free cash flow margin, which can be flattered by working capital timing and reduced capex, as seen in the drop from $1.1B to $497M in quarterly capital spending. Price-to-FCF of 19.79 may therefore appear more attractive than underlying earnings support warrants. An operating-cash-flow-minus-maintenance-capex measure, adjusted for pension mark-to-market effects, would offer a more conservative view of earnings power.