Price to FCFE (P/FCFE)

Difficulty: Intermediate


Free Cash Flow to Equity (FCFE)

Express Scripts Holding Co., FCFE calculation

USD $ in thousands

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12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net income attributable to Express Scripts 4,517,400  3,404,400  2,476,400  2,007,600  1,844,600 
Net income attributable to non-controlling interest 14,300  23,200  23,100  27,400  28,100 
Net noncash charges 266,000  1,728,000  1,967,800  1,915,100  2,120,800 
Changes in operating assets and liabilities 553,600  (236,200) 381,000  598,900  775,400 
Net cash flows provided by operating activities 5,351,300  4,919,400  4,848,300  4,549,000  4,768,900 
Capital expenditures for property and equipment and computer software (267,400) (330,400) (295,900) (436,600) (423,000)
Proceeds from long-term debt, net of discounts 1,398,900  5,986,800  5,500,000  2,490,100 
Repayment of long-term debt (1,125,000) (5,932,500) (3,390,800) (2,834,300) (1,931,600)
Commercial paper borrowings, net 194,800 
Free cash flow to equity (FCFE) 5,552,600  4,643,300  6,661,600  3,768,200  2,414,300 
Item Description The company
FCFE Free cash flow to equity is the cash flow available to Express Scripts Holding Co.'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. Express Scripts Holding Co.'s FCFE declined from 2015 to 2016 but then slightly increased from 2016 to 2017.

Price to FCFE Ratio, Current

Express Scripts Holding Co., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 562,229,000
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in thousands) 5,552,600 
FCFE per share 9.88
Current share price (P) 94.58
Ratio
P/FCFE 9.58
Benchmarks
P/FCFE, Competitors
Medtronic PLC
Stryker Corp. 51.79
Thermo Fisher Scientific Inc. 15.02
UnitedHealth Group Inc. 28.65
P/FCFE, Sector
Health Care Equipment & Services 20.10
P/FCFE, Industry
Health Care 17.53

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

Express Scripts Holding Co., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 564,347,000 605,720,000 668,046,000 726,898,000 776,032,000
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in thousands)2 5,552,600  4,643,300  6,661,600  3,768,200  2,414,300 
FCFE per share4 9.84 7.67 9.97 5.18 3.11
Share price1, 3 78.64 69.63 68.65 86.72 77.12
Ratio
P/FCFE5 7.99 9.08 6.88 16.73 24.79
Benchmarks
P/FCFE, Competitors
Medtronic PLC 15.43 4.72 10.61 11.81
Stryker Corp. 44.01 10.86 52.98 13.06 11.60
Thermo Fisher Scientific Inc. 12.83 8.90 106.00 12.53 9.58
UnitedHealth Group Inc. 24.48 16.79 4.64 15.02 11.91
P/FCFE, Sector
Health Care Equipment & Services 17.38 17.54 6.48 13.51 12.78
P/FCFE, Industry
Health Care 16.05 14.22 8.48 17.89 15.27

1 Data adjusted for splits and stock dividends.

2 See Details »

3 Close price on the filing date of Express Scripts Holding Co.'s Annual Report.

2017 Calculations

4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 5,552,600,000 ÷ 564,347,000 = 9.84

5 P/FCFE = Share price ÷ FCFE per share
= 78.64 ÷ 9.84 = 7.99

Ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders' equity. Express Scripts Holding Co.'s P/FCFE ratio increased from 2015 to 2016 but then slightly declined from 2016 to 2017.