Booking Holdings Inc. (BKNG)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Booking Holdings Inc., FCFE calculation

USD $ in millions

	12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Net income
	Net noncash charges
	Changes in assets and liabilities, net of effects of acquisitions
	Net cash provided by operating activities
	Additions to property and equipment
	Acquisition of land-use rights
	Proceeds from short-term borrowing
	Proceeds from revolving credit facility
	Payments related to revolving credit facility
	Payment of debt issuance costs, revolving credit facility
	Proceeds from the issuance of long-term debt
	Payments for conversion of senior notes
	Payment of debt
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Booking Holdings 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.	Booking Holdings Inc.’s FCFE increased from 2016 to 2017 but then declined significantly from 2017 to 2018.

Booking Holdings 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
Delta Air Lines Inc.
Marriott International Inc.
McDonald’s Corp.
Starbucks Corp.
P/FCFE, Sector
Travel & Leisure
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.

Booking Holdings Inc., historical P/FCFE calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	Delta Air Lines Inc.
	Marriott International Inc.
	McDonald’s Corp.
	Starbucks Corp.
	P/FCFE, Sector
	Travel & Leisure
	P/FCFE, Industry
	Consumer Services

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Booking Holdings Inc.’s Annual Report.

2018 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Booking Holdings Inc.’s P/FCFE ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.

	Booking Holdings Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality