In partnership with

The Daily Newsletter for Intellectually Curious Readers

Join over 4 million Americans who start their day with 1440 – your daily digest for unbiased, fact-centric news. From politics to sports, we cover it all by analyzing over 100 sources. Our concise, 5-minute read lands in your inbox each morning at no cost. Experience news without the noise; let 1440 help you make up your own mind. Sign up now and invite your friends and family to be part of the informed.

Join for free today!

United Parcel Service Corporation DCF Stock Analysis.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 3.9%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

Historical Data

Revenue growth in the last 10 years (CAGR): 4.55%

Earnings growth in the last 10 years (CAGR): 1.79%

Unlevered Free Cash Flow growth in the last 10 years (CAGR): 1.53%

Future Assumptions

End of Year FCF growth: 1%

Growth until end of 2026: 2%

Growth until end of 2034: 2%

Perpetual growth: 2%

Net Debt: 22.623B

Outstanding Stock Options Present Value Assumption: ~$0 ( current stock price is lower than the weighted average strike price)

Restricted Stock Units Present Value Assumption: $0.122B

Stock Valuation based on these assumptions: $88

Last update 10/5/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in United Parcel Service (UPS) and I don’t plan to add a position in the coming days.