United Parcel Service Inc · Logistics & Transportation

UPS

$103.45

C
Value CreationAsset Light

As of: 2026-09-02 14:32:10 (KST)

-33.3%

Expected return

35%

Success probability

-56.8%

Downside risk

For informational purposes only.

Not investment advice.

Was this analysis helpful?

Investment Summary

United Parcel Service Inc in the Logistics & Transportation industry carries C grade, driven by a Monte Carlo rating of 15. With an expected return of -33.3% and a 35% chance of positive returns, the stock at $103.45 presents This assessment is based on 10,000 probabilistic scenarios, offering a robust view of the potential return distribution across varying market conditions.

Why This Valuation?

The Reverse DCF analysis places this stock in the "Expensive" zone. The implied growth rate (g_implied) of 125.0%, compared with the actual growth rate of 0.9%, reveals the market's pricing assumptions. The P50 intrinsic value sits at $63, offering a reference point against the current price. At $105, the Reverse-DCF implied probability of finishing above $105 stands at 0%.

Grade Explanation

This C rating (15) suggests caution. The expected return of -33.3% and 35% success probability are below our threshold for an attractive entry.

Monte Carlo Interpretation

The Monte Carlo distribution reveals a volatility of 26.8% — moderate — within the typical range for an individual equity. The P50 sits at -42.0%, with a +33.8% gap between P10 (-56.8%) and P75 (-23.0%). a negative skew suggests downside scenarios are more pronounced than upside ones

Risk Summary

In the worst 5% of scenarios, the 5th percentile value-at-risk is -56.8%. On the operating side, the 7.3% operating margin provides a thin buffer against revenue declines. With a volatility of 26.8%, volatility represents a moderate risk factor at the current price of $103.

What is DCF (Discounted Cash Flow)?

DCF estimates a company's intrinsic value by discounting its future cash flows to present value. Modelvix uses Monte Carlo simulation to analyze thousands of scenarios.

Learn more →

What is WACC (Weighted Average Cost of Capital)?

WACC is the average rate a company pays to finance its assets, used as the discount rate in DCF analysis. Modelvix simulates how WACC changes affect valuation.

Learn more →

What is Terminal Value?

Terminal value represents the perpetual value of a business beyond the forecast period, often comprising the majority of DCF value. Modelvix analyzes terminal value uncertainty across growth scenarios.

Learn more →

What is Reverse DCF?

Reverse DCF works backward from the current stock price to infer the growth rate the market expects, helping you assess whether a stock is fairly valued. Modelvix shows what growth assumptions the current price implies.

Learn more →

Learn More Resources