Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Microsoft Corp., FCFE calculation
USD $ in millions
|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 2016 to 2017 but then declined significantly from 2017 to 2018.|
Price to FCFE Ratio, Current
Microsoft Corp., current P/FCFE calculation, comparison to benchmarks
|No. shares of common stock outstanding||7,668,217,316|
|Selected Financial Data (USD $)|
|Free cash flow to equity (FCFE) (in millions)||22,051|
|FCFE per share||2.88|
|Current share price (P)||107.58|
|Adobe Systems Inc.||44.02|
|International Business Machines Corp.||7.91|
|Software & Computer Services||17.88|
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
Microsoft Corp., historical P/FCFE calculation, comparison to benchmarks
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of Microsoft Corp.'s Annual Report.
4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 22,051,000,000 ÷ 7,668,217,316 = 2.88
5 P/FCFE = Share price ÷ FCFE per share
= 108.04 ÷ 2.88 = 37.57
|P/FCFE||Price to free cash flow to equity is cash valuation indicator of stockholders' equity.||Microsoft Corp.'s P/FCFE ratio declined from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.|