UPS Could Fetch An Upside Valuation Of $95 Per Share - Seeking Alpha United Parcel Service has an excellent combination of strong free cash flow generation and low financial leverage. We expect the firm's free cash flow margin to average about 9.3% in coming years. Total debt-to- EBITDA was 1.4 last year, while debt-to-book capitalization stood at 61.3%. The firm's share price performance has trailed that of the market during the past quarter. However, it is trading within our fair value estimate range, so we don't view such activity as alarming. The firm sports a very nice dividend yield of 3%. We expect the firm to pay out about 47% of next year's earnings to shareholders as dividends.