Intuitive Surgical Inc. (ISRG)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Intuitive Surgical Inc., FCFE calculation

USD $ in thousands

	12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Net income attributable to Intuitive Surgical, Inc.
	Net loss attributable to noncontrolling interest in joint venture
	Net noncash charges
	Changes in operating assets and liabilities, net of effects of acquisition
	Net cash provided by operating activities
	Purchase of property, plant and equipment, and intellectual property
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Intuitive Surgical 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.	Intuitive Surgical Inc.’s FCFE declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

Intuitive Surgical 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 thousands)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
Becton, Dickinson & Co.
Medtronic PLC
Stryker Corp.
Thermo Fisher Scientific Inc.
UnitedHealth Group Inc.
P/FCFE, Sector
Health Care Equipment & Services
P/FCFE, Industry
Health Care

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.

Intuitive Surgical 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 thousands)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	Becton, Dickinson & Co.
	Medtronic PLC
	Stryker Corp.
	Thermo Fisher Scientific Inc.
	UnitedHealth Group Inc.
	P/FCFE, Sector
	Health Care Equipment & Services
	P/FCFE, Industry
	Health Care

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Intuitive Surgical 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.	Intuitive Surgical Inc.’s P/FCFE ratio increased from 2016 to 2017 and from 2017 to 2018.

	Intuitive Surgical 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