Free Cash Flow to Equity (FCFE)

Microsoft Corp., FCFE calculation

USD $ in millions

 
12 months ended Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013 Jun 30, 2012
Net income 21,204  16,798  12,193  22,074  21,863  16,978 
Net noncash charges 16,651  18,603  15,962  9,804  8,554  14,915 
Changes in operating assets and liabilities 1,652  (2,076) 1,513  624  (1,375) (174)
Net cash from operations 39,507  33,325  29,668  32,502  29,042  31,719 
Proceeds from issuance (repayments) of short-term debt, maturities of 90 days or less, net (4,963) 7,195  4,481  500 
Proceeds from issuance of debt 44,344  13,884  10,680  10,350  4,883 
Repayments of debt (7,922) (2,796) (1,500) (3,888) (1,346)
Additions to property and equipment (8,129) (8,343) (5,944) (5,485) (4,257) (2,305)
Free cash flow to equity (FCFE) 62,837  43,265  37,385  33,979  28,322  29,414 
Item Description The company
FCFE Free cash flow to equity is the cash flow available to Microsoft 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. Microsoft Corp.'s FCFE increased from 2015 to 2016 and from 2016 to 2017.

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Price to FCFE Ratio, Current

Microsoft Corp., current P/FCFE calculation, comparison to benchmarks

 
No. shares of common stock outstanding 7,683,197,503
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions) 62,837 
FCFE per share 8.18
Current share price (P) 100.86
Ratio
P/FCFE 12.33
Benchmarks
P/FCFE, Competitors
Adobe Systems Inc. 46.08
Alphabet Inc. 34.07
Facebook Inc. 32.83
International Business Machines Corp. 7.87
Oracle Corp. 7.38
salesforce.com inc. 57.81
P/FCFE, Sector
Software & Computer Services 17.88
P/FCFE, Industry
Technology 15.47

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.

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Price to FCFE Ratio, Historical

Microsoft Corp., historical P/FCFE calculation, comparison to benchmarks

 
Jun 30, 2017 Jun 30, 2016 Jun 30, 2015 Jun 30, 2014 Jun 30, 2013 Jun 30, 2012
No. shares of common stock outstanding1 7,702,243,979 7,792,515,573 7,997,980,969 8,239,848,789 8,329,956,402 8,383,396,575
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)2 62,837  43,265  37,385  33,979  28,322  29,414 
FCFE per share4 8.16 5.55 4.67 4.12 3.40 3.51
Share price1, 3 72.26 56.21 46.70 43.16 31.85 29.16
Ratio
P/FCFE5 8.86 10.12 9.99 10.47 9.37 8.31
Benchmarks
P/FCFE, Competitors
Adobe Systems Inc. 35.59 27.41 25.83 31.68 30.61 15.52
Alphabet Inc. 31.41 22.41 29.23 31.52 37.12
Facebook Inc. 32.08 33.48 52.13 64.54 164.64
International Business Machines Corp. 8.55 10.60 9.60 10.95 9.23
Oracle Corp. 8.16 11.68 5.69 8.98 8.95 10.15
salesforce.com inc. 25.44 50.00 164.03 21.68 51.38
P/FCFE, Sector
Software & Computer Services 15.66 16.08 14.59 15.61 15.57
P/FCFE, Industry
Technology 13.52 12.81 9.94 12.44 12.44

1 Data adjusted for splits and stock dividends.

2 See Details »

3 Close price on the filing date of Microsoft Corp.'s Annual Report.

2017 Calculations

4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 62,837,000,000 ÷ 7,702,243,979 = 8.16

5 P/FCFE = Share price ÷ FCFE per share
= 72.26 ÷ 8.16 = 8.86

Ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders' equity. Microsoft Corp.'s P/FCFE ratio increased from 2015 to 2016 but then declined significantly from 2016 to 2017.

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