Toyota Motor Corp. (TM)

Free Cash Flow to Equity (FCFE)

Toyota Motor Corp., FCFE calculation

USD $ in millions, translated from JPY ￥

12 months ended	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
Net income (loss) attributable to Toyota Motor Corporation	3,450	4,909	2,251	(4,448)	17,146	13,927
Net (income) loss attributable to noncontrolling interests	1,031	689	374	(247)	778	421
Net noncash charges	12,048	12,882	16,618	18,157	14,250	11,862
Changes in operating assets and liabilities, and other	1,143	5,862	8,256	1,574	(2,415)	1,221
Net cash provided by operating activities	17,672	24,342	27,499	15,035	29,760	27,431
Additions to fixed assets excluding equipment leased to others	(8,803)	(7,569)	(6,498)	(13,892)	(14,778)	(12,078)
Proceeds from sales of fixed assets excluding equipment leased to others	446	617	564	482	674	546
Proceeds from issuance of long-term debt	29,137	35,255	34,161	35,702	33,435	24,481
Payments of long-term debt	(34,890)	(29,941)	(31,580)	(27,528)	(23,056)	(14,628)
Increase (decrease) in short-term borrowings	3,792	1,951	(3,605)	4,138	4,081	2,994
Free cash flow to equity (FCFE)	7,354	24,655	20,542	13,938	30,116	28,745

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Toyota Motor Corp.'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.	Toyota Motor Corp.'s FCFE increased from 2010 to 2011 but then declined significantly from 2011 to 2012.

Toyota Motor Corp., current P/FCFE

	Toyota Motor Corp.	Consumer Goods
No. shares of common stock outstanding	1,583,404,877
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)	7,354
FCFE per share	4.64
Current share price (P)	127.32
Ratio
P/FCFE	27.41	21.20

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.

Toyota Motor Corp., P/FCFE calculation

	Mar 31, 2012	Mar 31, 2011	Mar 31, 2010	Mar 31, 2009	Mar 31, 2008	Mar 31, 2007
No. shares of common stock outstanding¹	1,583,404,877	1,567,849,344	1,567,997,930	1,567,941,238	1,574,639,926	1,598,968,346
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)²	7,354	24,655	20,542	13,938	30,116	28,745
FCFE per share⁴	4.64	15.73	13.10	8.89	19.13	17.98
Share price^1, 3	76.09	81.29	70.00	76.06	97.14	123.11
P/FCFE, Comparison to Industry
Toyota Motor Corp.⁵	16.38	5.17	5.34	8.56	5.08	6.85
Industry, Consumer Goods	17.95	11.53	12.16	13.80	9.83	–

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Toyota Motor Corp.'s Annual Report.

2012 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
7,353,899,283 ÷ 1,583,404,877 = 4.64

⁵ P/FCFE = Share price ÷ FCFE per share
= 76.09 ÷ 4.64 = 16.38

Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.	Toyota Motor Corp.'s P/FCFE ratio declined from 2010 to 2011 but then increased from 2011 to 2012 exceeding 2010 level.