What does United Parcel Service do?

UPS picks up and delivers letters, documents, packages and pallets for businesses and consumers across the U.S. and around the world, using its own air and ground networks. It also helps companies move goods internationally through air and ocean freight, clears shipments through customs, and runs warehousing and supply-chain services.

What is United Parcel Service's fair value?

On an owner-earnings DCF, United Parcel Service's most-likely fair value is about $107, versus a recent price near $95. A margin-of-safety estimate, not a price target. Analysis, not advice.

Industrials · Integrated Freight & Logistics · UPS

What United Parcel Service Does & How It Makes Money (UPS)

Updated October 2026 · reflects United Parcel Service's latest reported financials

Global package delivery and logistics company. UPS charges shippers fees for delivering packages and freight.

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How United Parcel Service makes money

UPS charges shippers fees for delivering packages and freight. Prices depend on speed, distance, size and service level, such as guaranteed time-definite express or cheaper day-definite ground delivery. It also earns revenue from freight forwarding, contract logistics, customs brokerage, insurance and healthcare logistics services.

What United Parcel Service does

United Parcel Service is one of the world's largest package delivery and logistics providers. Founded in 1907 and headquartered in Atlanta, Georgia, it reports two segments. U.S. Domestic Package provides time-definite air and ground delivery of letters, documents, packages and palletized freight. International Package runs small-package operations in Europe, the Middle East and Africa, Canada, Latin America and Asia, with guaranteed express, day-definite, cross-border ground and e-commerce services. Beyond parcels, UPS offers international air and ocean freight forwarding, contract logistics, distribution, customs brokerage, insurance, mail services, healthcare logistics and post-sales services. The broad network lets it act as an end-to-end shipping and supply-chain partner for its customers. Its results tend to follow package volumes, e-commerce activity and global trade.

Products & services

U.S. domestic air and ground package delivery
International time-definite express shipping
Cross-border e-commerce shipping solutions
Air and ocean freight forwarding
Customs brokerage
Contract logistics and healthcare logistics

What is United Parcel Service worth?

On an owner-earnings DCF, United Parcel Service's most-likely value is about $107 versus a recent price near $95 (13% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$70) 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.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $95

Fair value (most likely)

$107

Range

$87–$139

No-growth floor

$70

Price

~$95

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.

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 →

Sector Industrials Industry Integrated Freight & Logistics HQ United States Ticker UPS Moat Established (75/100) Official site

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FedEx (FDX) · Pitney Bowes (PBI) · FedEx Freight Holding (FDXF) · STO Express (002468.SZ) · Expeditors International of Washington (EXPD)

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