Is United Parcel Service Inc. (UPS) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Industrials sector peers in our coverage

69% Discount TTM fundamentals · sector averages from covered peers

UPS trades at 18.2× TTM earnings — a 69% discount to its Industrials sector average of 58.1× in our coverage.

The Numbers

P/E (TTM)

18.2×

Sector avg: 58.1×

P/S (TTM)

1.1×

Sector avg: 5.4×

Market Cap

$99.86B

EPS (TTM): $6.47

Revenue (TTM)

$89.48B

Net income: $5.50B

Industrials Peer Comparison

How UPS's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock	Price	P/E (TTM)	P/S (TTM)	Market Cap
UPS This page	$117.71	18.2×	1.1×	$99.86B
CAT Caterpillar Inc.	$880.22	45.2×	6.4×	$411.92B
GE GE Aerospace	$348.74	42.8×	8.0×	$365.76B
BA The Boeing Company	$214.09	86.3×	1.9×	$168.13B

Is the Discount Justified?

July 12, 2026

UPS's P/E of 17.4x is significantly below the industrials sector average of 50.0x. This discount is largely attributable to the company's ongoing network restructuring, which involves a strategic reduction of low-yielding Amazon volume to prioritize more profitable segments like SMB, B2B, and complex healthcare. This strategy has led to revenue pressure and volume contraction in the U.S. Domestic Package segment, with Q1 2026 revenue declining. UPS anticipates the second half of 2026 to be an inflection point as the Amazon volume reduction concludes and a more efficient U.S. network operates. Despite volume challenges, the company has seen improvements in revenue per piece and is growing SMB and enterprise revenue.

Sources

Frequently Asked Questions

Is UPS overvalued or undervalued?

On trailing-twelve-month earnings, UPS trades at 18.2x versus a Industrials sector average of 58.1x in our coverage — a 68.7% discount. Whether that's justified depends on growth, margins, and risk; see the context above.

What does the P/E ratio tell you?

Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.

Why compare against the sector average?

Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing UPS with its own Industrials peers is more informative than comparing against the whole market.

Is a cheap stock automatically a good buy?

No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Industrials names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Industrials peers

GE BA CAT