Procter & Gamble Co. (PG) | Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Procter & Gamble Co., FCFE calculation

USD $ in millions

12 months ended	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
Net earnings	11,797	12,736	13,436	12,075	10,340	8,684
Add: Net noncash charges	3,193	1,123	1,847	5,462	4,643	3,110
Less: Total change in operating assets and liabilities	(1,759)	2,213	(364)	(1,723)	(1,548)	(419)
Total operating activities	13,231	16,072	14,919	15,814	13,435	11,375
Less: Capital expenditures	(3,306)	(3,067)	(3,238)	(3,046)	(2,945)	(2,667)
Add: Proceeds from asset sales	225	3,068	1,087	928	281	882
Add: Change in short-term debt	151	(1,798)	(2,420)	1,844	8,981	(8,627)
Add: Additions to long-term debt	1,536	3,830	4,926	7,088	4,758	22,545
Less: Reductions of long-term debt	(206)	(8,546)	(2,587)	(11,747)	(17,929)	(5,282)
Free cash flow to equity (FCFE)	11,631	9,559	12,687	10,881	6,581	18,226

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Procter & Gamble Co.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Procter & Gamble Co.'s FCFE declined from 2009 to 2010 but then increased from 2010 to 2011 not reaching 2009 level.

Procter & Gamble Co., current P/FCFE

	Procter & Gamble Co.	Consumer Goods
No. shares of common stock outstanding	2,747,768,202
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)	11,631
FCFE per share	4.23
Current share price (P)	62.39
Ratio
P/FCFE	14.74	11.46

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Procter & Gamble Co., P/FCFE calculation

	Jun 30, 2011	Jun 30, 2010	Jun 30, 2009	Jun 30, 2008	Jun 30, 2007	Jun 30, 2006
No. shares of common stock outstanding¹	2,747,768,202	2,838,474,868	2,918,890,075	3,034,310,829	3,120,750,759	3,175,086,100
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)	11,631	9,559	12,687	10,881	6,581	18,226
FCFE per share	4.23	3.37	4.35	3.59	2.11	5.74
Share price^1, 2	58.51	59.82	52.37	71.01	64.70	61.20
P/FCFE, Comparison to Industry
Procter & Gamble Co.	13.82	17.76	12.05	19.80	30.68	10.66
Industry, Consumer Goods	11.29	10.43	14.35	9.82	11.95	–

¹ Data adjusted for splits and stock dividends.
² Close price on the filing date of Procter & Gamble Co.'s Annual Report.

Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	Procter & Gamble Co.'s P/FCFE ratio increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level.