.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Costco Wholesale Corp., FCFE calculation
USD $ in millions
| 12 months ended | Sep 3, 2017 | Aug 28, 2016 | Aug 30, 2015 | Aug 31, 2014 | Sep 1, 2013 | Sep 2, 2012 | |
|---|---|---|---|---|---|---|---|
| | Net income attributable to Costco | ||||||
| | Net income attributable to noncontrolling interests | ||||||
| | Net noncash charges | ||||||
| | Changes in operating assets and liabilities | ||||||
| | Net cash provided by operating activities | ||||||
| | Additions to property and equipment | ||||||
| | Repayments of short-term borrowings | ||||||
| | Proceeds from short-term borrowings | ||||||
| | Proceeds from issuance of long-term debt | ||||||
| | Repayments of long-term debt | ||||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Costco Wholesale 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. | Costco Wholesale Corp.'s FCFE declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
Price to FCFE Ratio, Current
Costco Wholesale Corp., 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 | |
| Amazon.com Inc. | |
| 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
Costco Wholesale Corp., historical P/FCFE calculation, comparison to benchmarks
| Sep 3, 2017 | Aug 28, 2016 | Aug 30, 2015 | Aug 31, 2014 | Sep 1, 2013 | Sep 2, 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 | |||||||
| Amazon.com Inc. | |||||||
| 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 Costco Wholesale Corp.'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. | Costco Wholesale Corp.'s P/FCFE ratio declined from 2015 to 2016 but then increased from 2016 to 2017 not reaching 2015 level. |
