.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Cisco Systems Inc., FCFE calculation
USD $ in millions
| 12 months ended | Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | Jul 27, 2013 | Jul 28, 2012 | |
|---|---|---|---|---|---|---|---|
| | Net income | ||||||
| | Net noncash charges | ||||||
| | Change in operating assets and liabilities, net of effects of acquisitions and divestitures | ||||||
| | Net cash provided by operating activities | ||||||
| | Acquisition of property and equipment | ||||||
| | Proceeds from sales of property and equipment | ||||||
| | Short-term borrowings, original maturities less than 90 days, net | ||||||
| | Issuances of debt | ||||||
| | Repayments of debt | ||||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Cisco Systems 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. | Cisco Systems Inc.'s FCFE declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
Price to FCFE Ratio, Current
Cisco Systems 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. | |
| Applied Materials Inc. | |
| Broadcom 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
Cisco Systems Inc., historical P/FCFE calculation, comparison to benchmarks
| Jul 29, 2017 | Jul 30, 2016 | Jul 25, 2015 | Jul 26, 2014 | Jul 27, 2013 | Jul 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. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom 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 Cisco Systems 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. | Cisco Systems Inc.'s P/FCFE ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017 not reaching 2015 level. |
