Expeditors International Of Washington (EXPD) Pulls Back As Valuation Signals Stay Mixed

Expeditors International of Washington stock: key performance snapshot

Expeditors International of Washington (EXPD) has drawn attention after recent share price moves, with the stock last closing at US$171.42. Investors are weighing this level against the company’s latest financial figures and multi year return profile.

See our latest analysis for Expeditors International of Washington.

Recent trading has been choppy, with a 7 day share price return that declined 4.01%. However, the 30 day share price return of 6.65% and year to date share price return of 12.88% point to firmer momentum, while the 1 year total shareholder return of 51.33% highlights how Expeditors International of Washington has rewarded long term holders.

If you are comparing Expeditors International of Washington with other opportunities in transportation and logistics, it can help to see which peers stand out on quality and resilience, starting with our 18 top founder-led companies

After such a strong 1 year run and a recent pullback, Expeditors International of Washington now sits close to some fair value estimates yet above others. So where does a reasonable value range really fall against the current US$171.42 price?

Price-to-earnings of 26.8x for Expeditors International of Washington: Is it justified?

On simple valuation measures, Expeditors International of Washington does not screen as cheap. The stock trades on a P/E of 26.8x against the last close of $171.42, while several reference points suggest a lower level might align more closely with peers and modelled fair value.

The P/E ratio compares the current share price to earnings per share. For a logistics company like Expeditors International of Washington, it offers a quick read on how much investors are paying for each unit of current earnings, relative to both the wider logistics industry and companies with similar business profiles.

Here, the 26.8x P/E sits well above the Global Logistics industry average of 15.5x and also above the peer average of 20.8x. It is also higher than an estimated fair P/E of 19.1x, which is a level the market could potentially revert toward if sentiment or expectations change.

Explore the SWS fair ratio for Expeditors International of Washington

Result: Price-to-earnings of 26.8x (OVERVALUED)

However, Expeditors International of Washington also faces risks if earnings growth fails to support a 26.8x P/E or if global trade volumes weaken and reduce logistics demand.

Find out about the key risks to this Expeditors International of Washington narrative.

Another view on Expeditors International of Washington valuation

While the 26.8x P/E suggests Expeditors International of Washington is expensive, the SWS DCF model points in the opposite direction. It places fair value at $172.55, slightly above the current $171.42 share price, which implies a small undervaluation rather than a clear premium. Which signal do you trust more right now?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Expeditors International of Washington for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

If this mix of signals on Expeditors International of Washington feels mixed, that is the point. Take a closer look at the positives our work highlights and decide how they weigh up for your own approach by checking the 2 key rewards

Looking for more investment ideas beyond Expeditors International of Washington?

If Expeditors International of Washington is on your radar, it is worth broadening your watchlist now. The right mix of ideas can help you be prepared instead of reacting late.

• Target reliable cash generators by reviewing companies screened for financial strength and healthy balance sheets through the solid balance sheet and fundamentals stocks screener (48 results).
• Look for potential value opportunities by scanning stocks that combine quality fundamentals with attractive pricing using the 49 high quality undervalued stocks.
• Prioritise resilience by focusing on companies that score well on stability and risk metrics via the 83 resilient stocks with low risk scores.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com