.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Applied Materials Inc., FCFE calculation
USD $ in millions
| 12 months ended | Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | |
|---|---|---|---|---|---|---|---|
| | Net income | ||||||
| | Net noncash charges | ||||||
| | Changes in operating assets and liabilities, net of amounts acquired | ||||||
| | Cash provided by operating activities | ||||||
| | Capital expenditures | ||||||
| | Proceeds from sale of facilities | ||||||
| | Debt borrowings, net of issuance costs | ||||||
| | Debt repayments | ||||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Applied Materials 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. | Applied Materials Inc.'s FCFE declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
Price to FCFE Ratio, Current
Applied Materials 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 | |
| Apple Inc. | |
| Broadcom Ltd. | |
| Cisco Systems Inc. | |
| HP Inc. | |
| Intel Corp. | |
| NVIDIA Corp. | |
| Qualcomm Inc. | |
| Texas Instruments Inc. | |
| P/FCFE, Sector | |
| Technology Hardware & Equipment | |
| P/FCFE, Industry | |
| Technology | |
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
Applied Materials Inc., historical P/FCFE calculation, comparison to benchmarks
| Oct 29, 2017 | Oct 30, 2016 | Oct 25, 2015 | Oct 26, 2014 | Oct 27, 2013 | Oct 28, 2012 | ||
|---|---|---|---|---|---|---|---|
| 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 | |||||||
| Apple Inc. | |||||||
| Broadcom Ltd. | |||||||
| Cisco Systems Inc. | |||||||
| HP Inc. | |||||||
| Intel Corp. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
| P/FCFE, Sector | |||||||
| Technology Hardware & Equipment | |||||||
| P/FCFE, Industry | |||||||
| Technology | |||||||
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of Applied Materials 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. | Applied Materials Inc.'s P/FCFE ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level. |
