Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Twenty-First Century Fox Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
The financial performance from 2013 to 2018 indicates a general expansion in cash generation capabilities, although the relationship between operating cash flow and free cash flow to equity (FCFE) exhibited periodic fluctuations.
- Net Cash Provided by Operating Activities
- Operating cash flow demonstrated a general upward trajectory over the six-year period, increasing from 3,002 million US$ in 2013 to 4,227 million US$ by 2018. While growth was not linear—notably experiencing declines in 2014 and 2016—the final year of the analyzed period marked the peak of operational cash generation.
- Free Cash Flow to Equity (FCFE)
- FCFE showed consistent growth from 2013 through 2017, rising from 2,903 million US$ to 3,753 million US$. However, a reversal occurred in 2018, where FCFE declined to 3,273 million US$, representing a contraction despite the overall increase in operating cash flow during the same period.
- Cash Flow Divergence and Correlation
- A notable divergence between operating cash flow and FCFE is observed in specific years. In 2014 and 2016, FCFE exceeded net cash provided by operating activities, suggesting potential net debt issuance or a reduction in capital expenditures. Conversely, in 2018, a substantial gap emerged as FCFE fell significantly below operating cash flow, indicating a period of intensified capital investment or accelerated debt repayment.
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Price to FCFE Ratio, Current
Twenty-First Century Fox Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,856,929,453 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,273) |
| FCFE per share | 1.76 |
| Current share price (P) | 49.43 |
| Valuation Ratio | |
| P/FCFE | 28.04 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | 39.14 |
| Comcast Corp. | 4.51 |
| Meta Platforms Inc. | 25.61 |
| Netflix Inc. | 38.38 |
| Walt Disney Co. | 28.19 |
Based on: 10-K (reporting date: 2018-06-30).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Twenty-First Century Fox Inc., historical P/FCFE calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,852,574,153 | 1,851,057,916 | 1,862,528,151 | 2,019,460,912 | 2,190,056,341 | 2,309,530,372 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 3,273) | 3,753) | 3,458) | 3,509) | 3,145) | 2,903) | |
| FCFE per share3 | 1.77 | 2.03 | 1.86 | 1.74 | 1.44 | 1.26 | |
| Share price1, 4 | 45.32 | 28.21 | 26.16 | 30.12 | 35.76 | 31.44 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 25.65 | 13.91 | 14.09 | 17.33 | 24.90 | 25.01 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| Alphabet Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | — | — | — | — | — | — | |
| Netflix Inc. | — | — | — | — | — | — | |
| Walt Disney Co. | — | — | — | — | — | — | |
Based on: 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30).
1 Data adjusted for splits and stock dividends.
3 2018 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,273,000,000 ÷ 1,852,574,153 = 1.77
4 Closing price as at the filing date of Twenty-First Century Fox Inc. Annual Report.
5 2018 Calculation
P/FCFE = Share price ÷ FCFE per share
= 45.32 ÷ 1.77 = 25.65
6 Click competitor name to see calculations.
The valuation of Twenty-First Century Fox Inc. based on the Price to Free Cash Flow to Equity (P/FCFE) ratio exhibited significant fluctuations between 2013 and 2018. The period is characterized by a divergence between steady cash flow growth and volatile market pricing, culminating in a sharp valuation spike in the final year.
- Free Cash Flow to Equity (FCFE) Performance
- FCFE per share demonstrated a consistent upward trajectory from 2013 to 2017, increasing from US$ 1.26 to US$ 2.03. This growth indicates a sustained improvement in the company's ability to generate cash available to shareholders. However, this trend reversed slightly in 2018, with FCFE per share declining to US$ 1.77.
- P/FCFE Ratio Trends
- The P/FCFE ratio remained relatively stable between 2013 and 2014, holding near 25.0. A subsequent contraction occurred from 2015 to 2017, where the ratio fell significantly to 13.91. This compression was driven by a declining share price despite the concurrent rise in FCFE per share, suggesting a period of market undervaluation or shifting investor sentiment.
- Market Valuation Shift in 2018
- A dramatic shift in valuation occurred in 2018, as the share price rose to US$ 45.32. This price surge, occurring alongside a moderate decrease in FCFE per share, caused the P/FCFE ratio to expand rapidly to 25.65. This represents the highest valuation multiple within the analyzed timeframe, indicating a substantial increase in the price the market was willing to pay relative to the equity cash flows.
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