Expeditors International of Washington (EXPD) has been attracting investor interest because of its record of outperforming earnings estimates over the last two quarters. Analysts are now watching for the next report in early November.
See our latest analysis for Expeditors International of Washington.
Expeditors International’s share price has rebounded in recent weeks, rising 7.4% over the past 90 days and recapturing ground lost earlier this quarter. Despite muted total shareholder return of just 0.8% over the past year, the stock’s three- and five-year total returns remain impressive. This suggests that while near-term momentum is building, long-term investors have still enjoyed strong compounding gains overall.
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That leaves investors with a key question: Is Expeditors International currently undervalued given its recent momentum and analyst optimism, or has the market already priced in the company’s future growth prospects?
Expeditors International trades at a price-to-earnings (P/E) ratio of 19.1x, notably higher than both the global logistics industry average of 15.7x and its estimated fair P/E of 12x. With shares closing at $119.92, this elevated multiple suggests the market is paying a premium for expected earnings compared to many peers.
The price-to-earnings ratio measures how much investors are willing to pay per dollar of reported earnings. In the logistics sector, it is often used as a gauge of growth or quality relative to industry standards. For Expeditors International, this high P/E could signal that investors expect sustained earnings outperformance or have confidence in the company’s ability to weather industry cycles.
However, when compared to the global logistics average and the estimated fair value multiple for the business, Expeditors International’s premium stands out. This gap may indicate some market over-optimism about future growth, or it could reflect perceived strengths such as high returns on equity and a history of quality earnings. If the market normalizes, valuations could move closer to the fair ratio, so investors should keep that possibility in mind.
Explore the SWS fair ratio for Expeditors International of Washington
Result: Price-to-Earnings of 19.1x (OVERVALUED)
However, slowing revenue growth and negative net income trends could challenge further upside if Expeditors International does not reaccelerate operational performance soon.
Find out about the key risks to this Expeditors International of Washington narrative.
Beyond earnings multiples, a different story emerges when looking at Expeditors International through the lens of our DCF model. The SWS DCF model suggests the company is currently trading around 22% below its estimated fair value. This signals the shares may be undervalued despite the high price-to-earnings ratio. Could the market be missing something about Expeditors’ long-term cash flow potential?
Look into how the SWS DCF model arrives at its fair value.
EXPD Discounted Cash Flow as at Oct 2025
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 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.
If you would like to look at the numbers yourself or take a different approach, it only takes a few minutes to build your own story and see where your research leads. Do it your way
A great starting point for your Expeditors International of Washington research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
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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.
Companies discussed in this article include EXPD.
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