FedEx

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Credit Suisse	Allison M. Landry	allison.landry@credit-suisse.com
Raymond James	Arthur W. Hatfield	art.hatfield@raymondjames.com
Susquehanna Financial Group	Bascome Majors	bascome.majors@sig.com
Thompson Davis & Co	David Campbell	dcampbell@thompsondavis.com
Stifel Nicolaus	David G. Ross	dross@stifel.com
Bernstein Research	David Vernon	david.vernon@bernstein.com
Avondale Partners	Donald Broughton	dbroughton@avondalepartnersllc.com
Cowen & Company	Helane Becker	helane.becker@cowen.com
Stephens Inc	Jack Atkins	jack.atkins@stephens.com
Buckingham Research	Jeffrey Kauffman	jkauffman@buckresearch.com
RBC Capital Markets	John Barnes	john.barnes@rbccm.com
BB&T Capital Markets	Kevin W. Sterling	ksterling@bbandtcm.com
Nomura Research	Matt Troy	matt.troy@nomura.com
William Blair	Nathan Brochmann	nbrochmann@williamblair.com
Deutsche Bank Research	Robert Salmon	robert.salmon@db.com
Wolfe Research	Scott H. Group	sgroup@wolferesearch.com
Oppenheimer	Scott Schneeberger	scott.schneeberger@opco.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	1,521	2,389	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	677	467	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	85	154	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	32,230	38,804	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	4.72%	6.16%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	6,012	9,416	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	395.27%	394.20%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	5.43%	7.98%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	8.06%	8.27%
Enterprise value	EV_Market	54,438	59,373	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	55,134	61,394
Long-Run Growth	g = IR x ROIC	18.65%	24.27%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	4.93%	6.56%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	52.74%	43.61%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	1.15	1.06	6.47%	11.43%	6.28%	9.68%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	11.00	9.11	6.47%	11.43%	6.28%	9.68%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	35.79	24.86	6.47%	11.43%	6.28%	9.68%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	80.37	127.05	6.47%	11.43%	6.28%	9.68%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	23.26	16.16	6.47%	11.43%	6.28%	9.68%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.69	.53	6.47%	11.43%	6.28%	9.68%

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