.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Abbott Laboratories, FCFE calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net earnings | |||||
| | Net noncash charges | |||||
| | (Increase) decrease in operating capital | |||||
| | Net cash from operating activities | |||||
| | Acquisitions of property and equipment | |||||
| | Proceeds from issuance (repayments) of short-term debt and other | |||||
| | Proceeds from issuance of long-term debt and debt with maturities over 3 months | |||||
| | Repayments of long-term debt and debt with maturities over 3 months | |||||
| | Payment of bridge financing fees | |||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Abbott Laboratories'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. | Abbott Laboratories's FCFE increased from 2015 to 2016 but then declined significantly from 2016 to 2017. |
Price to FCFE Ratio, Current
Abbott Laboratories, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (USD $) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors | |
| AbbVie Inc. | |
| Allergan PLC | |
| Amgen Inc. | |
| Biogen Inc. | |
| Bristol-Myers Squibb Co. | |
| Celgene Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Johnson & Johnson | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| P/FCFE, Sector | |
| Pharmaceuticals & Biotechnology | |
| 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.
Price to FCFE Ratio, Historical
Abbott Laboratories, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (USD $) | ||||||
| | Free cash flow to equity (FCFE) (in millions)2 | |||||
| | FCFE per share4 | |||||
| Share price1, 3 | ||||||
| Ratio | ||||||
| | P/FCFE5 | |||||
| Benchmarks | ||||||
| P/FCFE, Competitors | ||||||
| AbbVie Inc. | ||||||
| Allergan PLC | ||||||
| Amgen Inc. | ||||||
| Biogen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Celgene Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| P/FCFE, Sector | ||||||
| Pharmaceuticals & Biotechnology | ||||||
| P/FCFE, Industry | ||||||
| Health Care | ||||||
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of Abbott Laboratories's Annual Report.
2017 Calculations
4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
5 P/FCFE = Share price ÷ FCFE per share
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| P/FCFE | Price to free cash flow to equity is cash valuation indicator of stockholders' equity. | Abbott Laboratories's P/FCFE ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
