Boeing Co. (BA)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Boeing Co., FCFE calculation

USD $ in millions

	12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Net earnings related to parent
	Net (earnings) losses related to noncontrolling interests
	Net noncash charges
	Changes in assets and liabilities
	Net cash provided by operating activities
	Property, plant and equipment additions
	Property, plant and equipment reductions
	Purchase of distribution rights
	New borrowings
	Debt repayments
	Repayments of distribution rights and other asset financing
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Boeing Co.’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.	Boeing Co.’s FCFE increased from 2016 to 2017 and from 2017 to 2018.

Boeing Co., 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
General Dynamics Corp.
Lockheed Martin Corp.
Northrop Grumman Corp.
Raytheon Co.
United Technologies Corp.
P/FCFE, Sector
Aerospace & Defense
P/FCFE, Industry
Industrials

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.

Boeing Co., historical P/FCFE calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	General Dynamics Corp.
	Lockheed Martin Corp.
	Northrop Grumman Corp.
	Raytheon Co.
	United Technologies Corp.
	P/FCFE, Sector
	Aerospace & Defense
	P/FCFE, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Boeing Co.’s Annual Report.

2018 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Boeing Co.’s P/FCFE ratio increased from 2016 to 2017 but then slightly declined from 2017 to 2018.

	Boeing Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality