Question 1

What is United Parcel Service's P/FCF ratio?

Accepted Answer

United Parcel Service (UPS) P/FCF ratio is 21.8× as of July 22, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month free cash flow, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/FCF ratio calculated?

Accepted Answer

P/FCF = Market Capitalisation ÷ Trailing Twelve-Month (TTM) Free Cash Flow, where Free Cash Flow = Operating Cash Flow − Capital Expenditures. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

Question 3

What is the P/FCF ratio?

Accepted Answer

The price-to-free-cash-flow (P/FCF) ratio compares a company's market capitalisation to its trailing twelve-month (TTM) free cash flow. It is calculated as market cap ÷ TTM free cash flow, where free cash flow = operating cash flow − capital expenditures. Because FCF cannot be inflated by non-cash accounting items, P/FCF is often considered a cleaner measure of "earnings-power valuation" than P/E — especially for capital-intensive businesses where depreciation diverges from real cash outflows.

Question 4

What is a good P/FCF ratio for United Parcel Service?

Accepted Answer

Mature companies that consistently convert profit into cash often trade at 15–25× P/FCF; capital-intensive businesses with lumpy capex typically trade lower. Compare against sector peers and against the company's own multi-year average — single-year P/FCF can be distorted by working-capital swings. For United Parcel Service specifically, the relevant sector benchmark is the current sector median of 24.3×.

Question 5

Is United Parcel Service's P/FCF ratio high or low?

Accepted Answer

United Parcel Service's P/FCF ratio of 21.8× is above its own 5-year average of 20.3× and below the sector median of 24.3×. That places the current reading at the 66th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

Question 6

What is United Parcel Service's historical P/FCF ratio range?

Accepted Answer

In the available daily series, United Parcel Service (UPS) P/FCF ratio has ranged from a low of 9.5× in 2008 to a high of 247.3× in 2017. The 5-year average is 20.3× and the 5-year median is 19.0×.

Question 7

What was United Parcel Service's P/FCF ratio in 2025?

Accepted Answer

United Parcel Service (UPS) P/FCF ratio at the end of 2025 was 17.7×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month free cash flow figure available at that date.

Question 8

Why does United Parcel Service's P/FCF ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (free cash flow). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.


2025	$84.2B	$4.77B	17.7×	+0.3×	Dec 31, 2025
2024	$108B	$6.21B	17.3×	-9.2×	Dec 31, 2024
2023	$135B	$5.08B	26.5×	+10.3×	Dec 31, 2023
2022	$151B	$9.34B	16.1×	-1.2×	Dec 31, 2022
2021	$188B	$10.8B	17.3×	-11.7×	Dec 31, 2021
2020	$147B	$5.05B	29.1×	-15.7×	Dec 31, 2020
2019	$101B	$2.26B	44.7×	+31.6×	Dec 31, 2019
2018	$84.4B	$6.43B	13.1×	—	Dec 31, 2018
2017	$103B	-$3.75B	—	—	Dec 31, 2017
2016	$100B	$3.51B	28.6×	+11.6×	Dec 31, 2016
2015	$85.9B	$5.05B	17.0×	-12.7×	Dec 31, 2015
2014	$101B	$3.4B	29.7×	+11.1×	Dec 31, 2014
2013	$97.5B	$5.24B	18.6×	+4.7×	Dec 31, 2013
2012	$70.4B	$5.06B	13.9×	+0.0×	Dec 31, 2012
2011	$70.4B	$5.07B	13.9×	-15.5×	Dec 31, 2011
2010	$72B	$2.45B	29.4×	+13.9×	Dec 31, 2010
2009	$57.1B	$3.68B	15.5×	+6.0×	Dec 31, 2009
2008	$55B	$5.79B	9.5×	—	Dec 31, 2008
2007	$73.6B	-$1.7B	—	—	Dec 31, 2007
2006	$80B	$2.5B	32.0×	+9.1×	Dec 31, 2006
2005	$82.3B	$3.61B	22.8×	-7.3×	Dec 31, 2005
2004	$96.6B	$3.2B	30.2×	-0.9×	Dec 31, 2004
2003	$83.9B	$2.7B	31.1×	+13.2×	Dec 31, 2003
2002	$71.1B	$3.97B	17.9×	—	Dec 31, 2002


Pentair (PNR)	19.8×
Thomson Reuters (TRI)	18.8×
PACCAR (PCAR)	18.6×
Gorman-Rupp (GRC)	18.5×
Alamo Group (ALG)	18.0×
Allegion (ALLE)	17.8×
Snap-on (SNA)	17.6×
United Airlines Holdings (UAL)	17.5×
Honeywell International (HON)	17.4×
Equifax (EFX)	17.0×
Norfolk Southern (NSC)	16.9×
FedEx (FDX)	15.9×
AGCO (AGCO)	15.4×
General Dynamics (GD)	15.3×
Carlisle Companies (CSL)	14.7×
Amentum Holdings (AMTM)	14.7×
Stanley Black & Decker (SWK)	14.4×
A. O. Smith (AOS)	14.2×
Huntington Ingalls Industries (HII)	14.1×
McGrath RentCorp (MGRC)	13.9×
Masco (MAS)	13.0×
Pool (POOL)	12.2×
Delta Air Lines (DAL)	10.1×
ABM Industries (ABM)	7.2×
Upwork (UPWK)	6.3×

P/FCF Ratio for United Parcel Service (UPS) 2002-2026

P/FCF Ratio daily chart for United Parcel Service (UPS)

Historical P/FCF Ratio for United Parcel Service (UPS) from 2002 to 2025

About P/FCF Ratio at United Parcel Service (UPS)

United Parcel Service P/FCF Ratio by Year

United Parcel Service P/FCF Ratio 2025: 17.7×

United Parcel Service P/FCF Ratio 2024: 17.3×

United Parcel Service P/FCF Ratio 2023: 26.5×

United Parcel Service P/FCF Ratio 2022: 16.1×

United Parcel Service P/FCF Ratio 2021: 17.3×

Sector peers by P/FCF Ratio — chart

Sector peers by P/FCF Ratio — table

Frequently asked questions

United Parcel Service (UPS) Key Financials