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 data reveals trends in two key cash flow metrics over a six-year period from mid-2013 to mid-2018.
- Net cash provided by operating activities
- This metric shows a generally positive trend with fluctuations. Starting at 3,002 million USD in mid-2013, it decreased slightly to 2,964 million USD in the following year. Subsequently, there was a notable increase in mid-2015, peaking at 3,617 million USD. This was followed by a dip to 3,048 million USD in mid-2016, after which the figure rose steadily, reaching 3,785 million USD in mid-2017 and continuing upward to 4,227 million USD by mid-2018. Overall, the trend suggests improving operational cash generation capability towards the end of the period.
- Free cash flow to equity (FCFE)
- FCFE exhibited growth from 2,903 million USD in mid-2013 to a peak of 3,753 million USD in mid-2017. The progression was fairly steady, with increases each year except for a slight decline in mid-2016 to 3,458 million USD, which aligns with the dip observed in operating cash flows. However, unlike operating cash flow, FCFE decreased in mid-2018 to 3,273 million USD, representing a noticeable drop from the prior year.
In summary, operating cash flow demonstrated increasing strength overall, particularly after 2016, indicating enhanced operational efficiency or profitability from operations. In contrast, free cash flow to equity, while generally increasing through 2017, declined in the final year observed, which could suggest increased capital expenditures, changes in working capital management, or financial activities affecting shareholder cash availability. The divergence in trends between these two measures in the final year is a point for further investigation to understand the underlying causes.
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$) | |
| Free cash flow to equity (FCFE) (in millions) | 3,273) |
| FCFE per share | 1.76 |
| Current share price (P) | 49.43 |
| Valuation Ratio | |
| P/FCFE | 28.04 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | 29.37 |
| Comcast Corp. | 8.65 |
| Meta Platforms Inc. | 29.50 |
| Netflix Inc. | 67.73 |
| Take-Two Interactive Software Inc. | 115.59 |
| Walt Disney Co. | 30.72 |
Based on: 10-K (reporting date: 2018-06-30).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Twenty-First Century Fox Inc., historical P/FCFE calculation, comparison to benchmarks
| Jun 30, 2018 | Jun 30, 2017 | Jun 30, 2016 | Jun 30, 2015 | Jun 30, 2014 | Jun 30, 2013 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,852,574,153 | 1,851,057,916 | 1,862,528,151 | 2,019,460,912 | 2,190,056,341 | 2,309,530,372 | |
| Selected Financial Data (US$) | |||||||
| 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. | — | — | — | — | — | — | |
| Take-Two Interactive Software 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.
Over the observed period from June 30, 2013, to June 30, 2018, several notable trends are evident in the financial metrics analyzed.
- Share Price
- The share price demonstrated fluctuations with an overall increase by the end of the period. Starting at $31.44 in mid-2013, it peaked at $35.76 in 2014, followed by a declining trend that reached its lowest point of $26.16 in 2016. Subsequently, the price experienced a recovery, ending at $45.32 in 2018, marking a substantial appreciation relative to the initial value.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share showed a consistent upward trajectory from 2013 through 2017, growing from $1.26 to $2.03, indicating improving cash generation available to shareholders during this period. However, in 2018, there was a notable decline to $1.77, which may suggest some challenges in cash flow generation or increased capital expenditures impacting free cash flow.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio illustrated an inverse relationship with FCFE per share through much of the period. It decreased steadily from 25.01 in 2013 to a trough near 13.91 in 2017, reflecting improving valuation in terms of free cash flow yields. Nevertheless, in 2018, the ratio more than doubled to 25.65, driven by a combination of the share price increase and the decline in FCFE per share. This sudden rise suggests a repricing of the stock at a higher multiple of its free cash flow, implying either increased market optimism or reduced cash flow expectations by investors.