United Parcel Service Inc. (UPS) intrinsic value & 10-year financials

United Parcel Service Inc. (UPS) has a Graham intrinsic value of $116.47 per share. At $97.48 on Oct 17, 2026, the stock trades 16% below that value. Over the last 10 fiscal years revenue grew 4.1% a year to $88.7B, with an average return on invested capital of 27.6%.

Graham intrinsic value
$116.47
Share price (Oct 17, 2026)
$97.48
Price vs Graham value
16% below
Market cap
$82.9B
Revenue (FY2025)
$88.7B
Revenue growth (10-yr CAGR)
4.1%
ROIC (10-yr avg)
27.6%
Free cash flow (FY2025)
$4.8B

UPS 10-year financial history

Fiscal year Revenue Net income EPS (diluted) Free cash flow Operating margin ROIC
FY2025 $88.7B $5.6B $6.56 $4.8B 8.9% 19.1%
FY2024 $91.1B $5.8B $6.75 $6.2B 9.3% 20.9%
FY2023 $91.0B $6.7B $7.80 $5.1B 10.0% 21.4%
FY2022 $100.3B $11.5B $13.20 $9.3B 13.0% 34.1%
FY2021 $97.3B $12.9B $14.68 $10.8B 13.2% 43.9%
FY2020 $84.6B $1.3B $1.54 $5.0B 9.1% 26.2%
FY2019 $74.1B $4.4B $5.11 $2.3B 10.5% 27.3%
FY2018 $71.9B $4.8B $5.51 $6.4B 9.8% 25.7%
FY2017 $66.6B $4.9B $5.61 -$3.7B 11.3% 29.6%
FY2016 $61.6B $3.4B $3.87 $3.5B 8.9% 28.1%

Source: annual 10-K filings on SEC EDGAR. Figures in USD.

Executive summary

United Parcel Service has demonstrated mature, steady growth, with revenue compounding at 4.1% annually over the past decade.

United Parcel Service has earned high returns on invested capital, averaging 27.6% ROIC over the available history. High ROIC is consistent with a durable franchise, but it is not by itself proof of an economic moat.

United Parcel Service has not shown aggressive share repurchases (>10% retirement) or a major balance-sheet leverage increase (>50% net debt growth) over the 10-year window.

Benjamin Graham lens

Under Benjamin Graham's formula using SEC EDGAR fundamentals, United Parcel Service is modeled at 6.0% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $116.47 per share.

UPS stock: frequently asked questions

What is the intrinsic value of United Parcel Service Inc. (UPS) stock?

Using Benjamin Graham's revised formula, V = EPS × (8.5 + 2g) × 4.4 / Y, with reported diluted earnings per share, a 6.0% normalized growth rate (capped at 15%) and a 5.1% AAA corporate bond yield, UPS's intrinsic value is about $116.47 per share.

Is UPS stock undervalued?

At $97.48 (close on Oct 17, 2026), UPS trades 16% below its Graham value of $116.47. On Graham's terms that leaves a margin of safety. A formula is a starting point for research, not a recommendation.

How fast has United Parcel Service Inc. grown?

Revenue went from $61.6B in fiscal 2016 to $88.7B in fiscal 2025, a compound annual growth rate of 4.1%. Net income was $5.6B in fiscal 2025.

Does United Parcel Service Inc. generate free cash flow?

United Parcel Service Inc. generated $4.8B of free cash flow (operating cash flow minus capital expenditures) in fiscal 2025. Free cash flow was positive in 9 of the last 10 reported years.

What is UPS's return on invested capital?

Average ROIC over the last 10 fiscal years was 27.6%, and average return on equity was 233.9%. Sustained ROIC above about 15% usually points to a durable competitive advantage.

Where does this UPS data come from?

From United Parcel Service Inc.'s annual 10-K filings on SEC EDGAR, most recently filed May 6, 2026. Prices are end-of-day snapshots; valuations are formula outputs, not investment advice.

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