.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Amazon.com Inc., FCFE calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income (loss) | |||||
| | Net noncash charges | |||||
| | Changes in operating assets and liabilities | |||||
| | Net cash provided by operating activities | |||||
| | Purchases of property and equipment, including internal-use software and website development, net | |||||
| | Proceeds from property and equipment incentives | |||||
| | Proceeds from long-term debt and other | |||||
| | Repayments of long-term debt and other | |||||
| | Principal repayments of capital lease obligations | |||||
| | Principal repayments of finance lease obligations | |||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Amazon.com Inc.'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. | Amazon.com Inc.'s FCFE increased from 2015 to 2016 and from 2016 to 2017. |
Price to FCFE Ratio, Current
Amazon.com Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (USD $) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors | |
| Costco Wholesale Corp. | |
| eBay Inc. | |
| Home Depot Inc. | |
| Lowe's Cos. Inc. | |
| Netflix Inc. | |
| Target Corp. | |
| TJX Cos. Inc. | |
| Walmart Inc. | |
| P/FCFE, Sector | |
| General Retailers | |
| P/FCFE, Industry | |
| Consumer Services | |
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.
Price to FCFE Ratio, Historical
Amazon.com Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (USD $) | ||||||
| | Free cash flow to equity (FCFE) (in millions)2 | |||||
| | FCFE per share4 | |||||
| Share price1, 3 | ||||||
| Ratio | ||||||
| | P/FCFE5 | |||||
| Benchmarks | ||||||
| P/FCFE, Competitors | ||||||
| Costco Wholesale Corp. | ||||||
| eBay Inc. | ||||||
| Home Depot Inc. | ||||||
| Lowe's Cos. Inc. | ||||||
| Netflix Inc. | ||||||
| Target Corp. | ||||||
| TJX Cos. Inc. | ||||||
| Walmart Inc. | ||||||
| P/FCFE, Sector | ||||||
| General Retailers | ||||||
| P/FCFE, Industry | ||||||
| Consumer Services | ||||||
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of Amazon.com Inc.'s Annual Report.
2017 Calculations
4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
5 P/FCFE = Share price ÷ FCFE per share
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| P/FCFE | Price to free cash flow to equity is cash valuation indicator of stockholders' equity. | Amazon.com Inc.'s P/FCFE ratio declined from 2015 to 2016 and from 2016 to 2017. |
