Highly Regarded

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

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

71% Discount TTM fundamentals · sector averages from covered peers

UPS trades at 16.1× TTM earnings — a 71% discount to its Industrials sector average of 55.3× in our coverage.

The Numbers

P/E (TTM)

16.1×

Sector avg: 55.3×

P/S (TTM)

1.0×

Sector avg: 5.1×

Market Cap

$88.46B

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)
UPS This page $104.27 16.1×
CAT $798.14 41.0×
GE $335.58 41.2×
BA $207.80 83.8×

Is the Discount Justified?

August 9, 2026

United Parcel Service Inc. (UPS) trades at a P/E multiple of 16.1x, a significant discount compared to the Industrials sector average of 49.9x. This valuation reflects the company's ongoing operational restructuring and a strategic shift in its business model. UPS recently reported increased second-quarter revenue and raised its full-year outlook, signaling the completion of a years-long overhaul aimed at removing billions in costs. The company is now prioritizing margin per shipment over volume at scale, having shed commodity e-commerce volume, including from Amazon, and invested heavily in automation while reducing its workforce. While these initiatives are designed to create a leaner, more agile network for profitable growth, the second quarter's reported earnings were impacted by a one-time charge from workforce reductions and elevated fuel costs due to geopolitical events. The market appears to be assessing the long-term benefits of these strategic changes against near-term cost pressures and the evolving logistics landscape.

Sources

Frequently Asked Questions

Is UPS overvalued or undervalued?
On trailing-twelve-month earnings, UPS trades at 16.1x versus a Industrials sector average of 55.3x in our coverage — a 70.9% 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