Free Cash Flow to Equity (FCFE)

Boeing Co., 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 related to parent 8,197  4,895  5,176  5,446  4,585 
Net (earnings) losses related to noncontrolling interests (2) (1) (3) 10 
Net noncash charges 2,654  2,560  2,395  2,505  2,507 
Changes in assets and liabilities 2,495  3,045  1,795  897  1,078 
Net cash provided by operating activities 13,344  10,499  9,363  8,858  8,179 
Property, plant and equipment additions (1,739) (2,613) (2,450) (2,236) (2,098)
Property, plant and equipment reductions 92  38  42  34  51 
Purchase of distribution rights (131) (140)
New borrowings 2,077  1,325  1,746  962  571 
Debt repayments (953) (1,359) (885) (1,601) (1,434)
Repayments of distribution rights and other asset financing (24) (185) (280)
Free cash flow to equity (FCFE) 12,690  7,866  7,816  5,832  4,849 
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 2015 to 2016 and from 2016 to 2017.

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Price to FCFE Ratio, Current

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

 
No. shares of common stock outstanding 582,580,973
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions) 12,690 
FCFE per share 21.78
Current share price (P) 360.09
Ratio
P/FCFE 16.53
Benchmarks
P/FCFE, Competitors
General Dynamics Corp. 17.48
Lockheed Martin Corp. 17.29
Northrop Grumman Corp. 5.84
Raytheon Co. 32.75
United Technologies Corp. 15.18
P/FCFE, Sector
Aerospace & Defense 14.59
P/FCFE, Industry
Industrials 16.63

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.

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Price to FCFE Ratio, Historical

Boeing Co., 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 588,490,313 612,478,643 662,503,822 704,387,613 743,404,506
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)2 12,690  7,866  7,816  5,832  4,849 
FCFE per share4 21.56 12.84 11.80 8.28 6.52
Share price1, 3 343.80 163.81 116.36 148.09 130.16
Ratio
P/FCFE5 15.94 12.75 9.86 17.89 19.95
Benchmarks
P/FCFE, Competitors
General Dynamics Corp. 17.60 24.11 28.78 14.16 13.38
Lockheed Martin Corp. 18.40 23.62 4.99 20.16 14.71
Northrop Grumman Corp. 5.94 16.31 14.90 15.54 6.01
Raytheon Co. 33.10 19.68 19.43 14.41 14.43
United Technologies Corp. 14.93 10.56 12.16 21.48 34.14
P/FCFE, Sector
Aerospace & Defense 14.56 15.27 10.05 17.91 16.83
P/FCFE, Industry
Industrials 16.22 13.01 11.73 16.91 19.30

1 Data adjusted for splits and stock dividends.

2 See Details »

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

2017 Calculations

4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 12,690,000,000 ÷ 588,490,313 = 21.56

5 P/FCFE = Share price ÷ FCFE per share
= 343.80 ÷ 21.56 = 15.94

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 2015 to 2016 and from 2016 to 2017.

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