Case | HBS Case Collection | October 2002 (Revised October 2005)

United Parcel Service's IPO

by Paul M. Healy, Brett Laschinger and Ajay Shroff

Abstract

Examines the valuation of United Parcel Service (UPS) at the time of its IPO in mid-1999. Offers students the opportunity to assess UPS's current performance relative to its major competitor, Federal Express (FedEx), and to judge whether that performance is sustainable. Students then make projections of UPS's future earnings performance, estimate on IPO price, and assess the reasonableness of their estimate compared to the valuation of FedEx and best-in-class leaders.

Keywords: Initial Public Offering; Valuation; Performance Evaluation; Competition; Shipping Industry; Georgia (state, US);

Citation:

Healy, Paul M., Brett Laschinger, and Ajay Shroff. "United Parcel Service's IPO." Harvard Business School Case 103-015, October 2002. (Revised October 2005.)