If you are wondering whether Expeditors International of Washington is still worth your attention at current prices, this article focuses squarely on what the latest data says about its valuation.
The stock last closed at US$160.73, with returns of 5.8% year to date and 41.2% over the past year. Over the past week it saw a small decline of 0.4%, while the past month showed a gain of 1.7%.
Recent news coverage has highlighted Expeditors International of Washington in the context of broader interest in logistics and global trade, which can shape how investors think about the stock’s risk and potential. These headlines provide useful context for the recent price moves and help frame expectations around future performance.
On Simply Wall St’s valuation checks, Expeditors International of Washington currently scores 1 out of 6. The next sections will walk through what different valuation approaches suggest about this stock and will point to a more complete way to think about valuation at the end of the article.
Expeditors International of Washington scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
Approach 1: Expeditors International of Washington Discounted Cash Flow (DCF) Analysis
A Discounted Cash Flow, or DCF, model estimates what Expeditors International of Washington could be worth today by projecting future cash flows and discounting them back to a present value. It focuses on the cash the company is expected to generate for shareholders rather than short term market sentiment.
For Expeditors International of Washington, the model uses last twelve month Free Cash Flow of about $924.5 million as a starting point, then applies a 2 Stage Free Cash Flow to Equity framework. Analysts provide explicit dollar free cash flow estimates up to 2027, including a projection of $972.1 million for 2027. Beyond that, Simply Wall St extrapolates further annual cash flows up to 2035, all expressed in millions of dollars and discounted back using the model’s required rate of return.
Putting these cash flow projections together results in an estimated intrinsic value of about $171.80 per share, compared with the recent share price of $160.73. That indicates the stock is trading at roughly a 6.4% discount to this DCF estimate, which is a relatively small valuation gap.
Result: ABOUT RIGHT
Expeditors International of Washington is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment’s notice. Track the value in your watchlist or portfolio and be alerted on when to act.
Approach 2: Expeditors International of Washington Price vs Earnings
For a profitable company like Expeditors International of Washington, the P/E ratio is a useful way to relate what you are paying for each share to the earnings the business is currently generating. In general, higher growth expectations or lower perceived risk can justify a higher P/E, while slower growth or higher risk tends to line up with a lower, more conservative multiple.
Expeditors International of Washington currently trades on a P/E of about 25.1x. This sits above the Logistics industry average P/E of about 14.8x and also above the peer group average of roughly 20.6x. On its own, that points to the market placing a richer price on each dollar of the company’s earnings compared with many Logistics peers.
Simply Wall St’s “Fair Ratio” is designed to refine this comparison. It estimates what a reasonable P/E might be for Expeditors International of Washington given factors such as earnings growth profile, profit margins, market capitalization, industry and company specific risks. For this stock, the Fair Ratio is about 17.9x, which is below the current 25.1x P/E, suggesting the shares are trading above this model’s view of fair value.
Upgrade Your Decision Making: Choose your Expeditors International of Washington Narrative
Earlier it was mentioned that there is an even better way to understand valuation. This is where Narratives come in, giving you a clear story for Expeditors International of Washington that links what you believe about the business to a set of revenue, earnings and margin forecasts, and then to a fair value estimate that you can compare with the current share price.
A Narrative on Simply Wall St’s Community page lets you set your own assumptions, see how those translate into a forecast and fair value, and then quickly judge whether the stock looks expensive or cheap relative to your view. This can help you decide whether to act now or wait.
Because Narratives on the platform are updated when new information such as company news or earnings is added, your fair value view for Expeditors International of Washington can adjust automatically rather than relying on a one off snapshot.
For example, one investor might build a Narrative for Expeditors International of Washington with relatively cautious revenue growth and a lower fair value estimate. Another might use higher long term revenue assumptions and a higher fair value. This shows how different perspectives can coexist on the same stock and helps you see where your own expectations sit on that spectrum.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
