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Non-Tech : FedEx (FDX)

FDX 259.95

+0.4%

9:36 AM EST

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To: JakeStraw who wrote (449)	12/4/1999 3:57:00 PM
From: Don Dodge	Read Replies (1) of 524

How can FDX be worth $12.5B while UPS is worth $80B? I looked at the financials and found that UPS has far more revenue but FDX is actually more profitable than UPS over the past 3 years. The fiscal years don't match up well, and UPS had a one time hit to earnings that distorts the numbers. I tried to normalize for these things and here are the "normalized" numbers. Revenues 1997 FDX was $14.2B while UPS was $22.5B 1998 FDX was $15.9B while UPS was $24.8B 1999 FDX was $16.8B while UPS will probably be $26.0B Most recent quarter FDX was $4.3B while UPS was $6.7B Profits in EPS 1997 FDX earned $.66 while UPS earned $.80 1998 FDX earned $1.67 while UPS would have earned about $1.57 1999 FDX earned $2.10 while UPS will probably earn $2.00 Most recent qtr FDX earned $.52 while UPS earned $.51 Given these numbers I would have expected that FDX and UPS would be comparably valued. I didn't expect UPS to be worth 6.4 times as much as FDX. Why do you think this is the case? Do you expect it to continue?

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