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

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

70% Discount TTM fundamentals · sector averages from covered peers

UPS trades at 15.1× TTM earnings — a 70% discount to its Industrials sector average of 50.7× in our coverage.

The Numbers

P/E (TTM)

15.1×

Sector avg: 50.7×

P/S (TTM)

0.9×

Sector avg: 4.7×

Market Cap

$83.01B

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	$97.84	15.1×	0.9×	$83.01B
CAT Caterpillar Inc.	$735.56	37.8×	5.3×	$344.23B
GE GE Aerospace	$312.03	38.3×	7.1×	$327.26B
BA The Boeing Company	$188.72	76.1×	1.7×	$148.21B

Is the Discount Justified?

October 11, 2026

UPS's P/E of 14.6x is significantly below the industrials sector average of 42.6x. The logistics and shipping industry, while benefiting from e-commerce growth, faces considerable operational challenges. These include rising shipping costs, the complexity and expense of last-mile delivery, and intense competition. Companies like UPS are under continuous pressure to enhance delivery speed and efficiency while managing costs, which can impact profit margins. Additionally, effective inventory management and handling returns are ongoing logistical hurdles in the e-commerce landscape. This lower P/E multiple likely reflects these industry-specific pressures and the mature nature of the shipping business compared to other industrial sub-sectors.

Sources

Frequently Asked Questions

Is UPS overvalued or undervalued?

On trailing-twelve-month earnings, UPS trades at 15.1x versus a Industrials sector average of 50.7x in our coverage — a 70.2% 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

CAT GE BA