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

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

73% Discount TTM fundamentals · sector averages from covered peers

UPS trades at 17.0× TTM earnings — a 73% discount to its Industrials sector average of 63.6× in our coverage.

The Numbers

P/E (TTM)

17.0×

Sector avg: 63.6×

P/S (TTM)

1.0×

Sector avg: 5.9×

Market Cap

$93.32B

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	$110.00	17.0×	1.0×	$93.32B
CAT Caterpillar Inc.	$969.62	49.8×	7.0×	$453.76B
GE GE Aerospace	$378.56	46.5×	8.7×	$397.04B
BA The Boeing Company	$234.50	94.6×	2.1×	$184.16B

Is the Discount Justified?

July 6, 2026

UPS's P/E of 17.1x is significantly below the industrials sector average of 52.0x. This substantial discount reflects recent operational challenges, as evidenced by Q1 2026 results showing a 1.6% decline in consolidated revenues and a 23.9% drop in operating profit, with net income falling 27.2%. The company is undergoing a strategic transition, deliberately reducing lower-yielding volume and focusing on higher-yielding business, which led to a 7.7% decrease in average daily package volume. UPS has reaffirmed its full-year 2026 financial targets and expects to return to consolidated revenue and operating profit growth in Q2, supported by significant cost-saving initiatives. The market appears to be pricing in the current transitional phase and macroeconomic headwinds affecting shipping volumes.

Sources

Frequently Asked Questions

Is UPS overvalued or undervalued?

On trailing-twelve-month earnings, UPS trades at 17.0x versus a Industrials sector average of 63.6x in our coverage — a 73.3% 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