TacticScaleWhat FedEx Does & How It Makes Money (FDX)
Updated October 2026 · reflects FedEx's latest reported financials
Global package delivery, freight and logistics company. FedEx earns most of its revenue from shipping fees charged to businesses and consumers for domestic and international package and cargo transportation.
How FedEx makes money
FedEx earns most of its revenue from shipping fees charged to businesses and consumers for domestic and international package and cargo transportation. It also charges for logistics, customs brokerage, supply chain management, and retail print and business services.
What FedEx does
FedEx Corporation, founded in 1971 and headquartered in Memphis, Tennessee, provides transportation, e-commerce and business services in the United States and internationally. It reports two segments, Express U.S. Domestic and Express International, which together cover time-sensitive package delivery at home and across borders. On top of core delivery, FedEx offers air and ocean cargo, specialty transportation, customs brokerage, trade data tools and door-to-door solutions, plus third-party logistics such as warehousing, fulfillment, returns handling and product repair or liquidation. Its retail and business services cover printing, direct mail, signage, packing supplies, passport processing and digital notarization, along with e-commerce and data solutions.
Products & services
- Express U.S. domestic package delivery
- Express international shipping
- Air and ocean cargo transportation
- Customs brokerage and trade management tools
- Third-party logistics and supply chain solutions
- Printing, packing and shipping services
What is FedEx worth?
On an owner-earnings DCF, FedEx's most-likely value is about $320 versus a recent price near $292 (10% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$203) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
⚠ High leverage — net debt is 5.6× annual cash flow. Net debt is subtracted from this fair value, but refinancing at higher rates, principal timing, and share dilution aren’t modeled — the equity can be worth far less if cash flow weakens.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
Related companies
FedEx Freight Holding (FDXF) · United Parcel Service (UPS) · S.F. Holding (002352.SZ) · Expeditors International of Washington (EXPD)