Boston Scientific Corp., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (loss)	698)	1,041)	(82)	4,700)	1,671)
Net noncash charges	1,833)	1,180)	1,548)	(2,568)	808)
Increase (decrease) in operating assets and liabilities, excluding purchase accounting	(1,005)	(351)	42)	(296)	(2,169)
Cash provided by operating activities	1,526)	1,870)	1,508)	1,836)	310)
Purchases of property, plant and equipment and internal use software	(588)	(554)	(376)	(461)	(316)
Proceeds from sale of property, plant and equipment	12)	14)	12)	7)	14)
Payments on short-term borrowings	(250)	—)	(2,950)	(1,000)	—)
Proceeds from short-term borrowings, net of debt issuance costs	—)	—)	2,245)	700)	999)
Net increase (decrease) in commercial paper	(1)	—)	(714)	(575)	21)
Payments on borrowings from credit facilities	—)	—)	(1,919)	—)	(569)
Proceeds from borrowings on credit facilities	—)	—)	1,916)	—)	569)
Payments on long-term borrowings and debt extinguishment costs	(3,184)	—)	(1,260)	(3,560)	(602)
Proceeds from long-term borrowings, net of debt issuance costs	3,270)	—)	1,683)	7,229)	987)
Free cash flow to equity (FCFE)	785)	1,330)	145)	4,176)	1,413)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The financial data for the period from December 31, 2018, to December 31, 2022, reveals certain patterns and fluctuations in cash-related activities.

Cash Provided by Operating Activities:: The cash generated from operating activities exhibited a significant increase from 310 million US dollars in 2018 to a peak of 1,836 million US dollars in 2019. Following this peak, there was a decline to 1,508 million US dollars in 2020, followed by a recovery to 1,870 million US dollars in 2021. The figure then fell again to 1,526 million US dollars in 2022. These fluctuations suggest variability in the company's ability to generate operating cash flow, with 2019 and 2021 being the strongest years within the period observed.
Free Cash Flow to Equity (FCFE):: The FCFE showed a substantial increase from 1,413 million US dollars in 2018 to a high of 4,176 million US dollars in 2019, indicating a significant improvement in the cash available to shareholders after accounting for capital expenditures and debt repayments. However, there was a sharp drop to 145 million US dollars in 2020. The FCFE partially recovered to 1,330 million US dollars in 2021 but then declined again to 785 million US dollars in 2022. This pattern indicates volatility in the company's free cash flows available to equity holders, with a notably strong year in 2019 and weaker performance in subsequent years.

Overall, both cash provided by operating activities and free cash flow to equity experienced notable volatility during the five-year period. The years 2019 and 2021 represented peak levels for operating cash generation, while free cash flow availability to equity holders reached its highest point in 2019 but showed a declining trend thereafter. These variations could reflect changes in operational efficiency, investment activities, or financial strategies impacting liquidity and shareholder returns over time.

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Boston Scientific Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	1,437,698,101
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	785)
FCFE per share	0.55
Current share price (P)	51.94
Valuation Ratio
P/FCFE	95.13
Benchmarks
P/FCFE, Competitors¹
Abbott Laboratories	39.51
CVS Health Corp.	7.20
Elevance Health Inc.	7.16
Intuitive Surgical Inc.	140.77
Medtronic PLC	15.73
UnitedHealth Group Inc.	7.80
P/FCFE, Sector
Health Care Equipment & Services	14.31
P/FCFE, Industry
Health Care	18.89

Based on: 10-K (reporting date: 2022-12-31).

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.

Boston Scientific Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
No. shares of common stock outstanding¹	1,434,780,104	1,426,724,712	1,417,165,707	1,396,195,349	1,385,961,926
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	785)	1,330)	145)	4,176)	1,413)
FCFE per share³	0.55	0.93	0.10	2.99	1.02
Share price^1, 4	47.18	43.71	38.75	39.91	39.86
Valuation Ratio
P/FCFE⁵	86.23	46.89	378.73	13.34	39.10
Benchmarks
P/FCFE, Competitors⁶
Abbott Laboratories	26.11	24.52	38.42	—	—
CVS Health Corp.	12.36	21.23	11.93	—	—
Elevance Health Inc.	14.26	11.07	7.75	—	—
Intuitive Surgical Inc.	89.67	58.39	81.15	—	—
Medtronic PLC	19.71	38.91	23.06	—	—
UnitedHealth Group Inc.	12.57	20.11	13.93	—	—
P/FCFE, Sector
Health Care Equipment & Services	15.91	22.03	17.62	—	—
P/FCFE, Industry
Health Care	18.11	18.05	17.25	—	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 785,000,000 ÷ 1,434,780,104 = 0.55

⁴ Closing price as at the filing date of Boston Scientific Corp. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 47.18 ÷ 0.55 = 86.23

⁶ Click competitor name to see calculations.

Share Price Trends: The share price shows a generally increasing trend over the five-year period. It started at $39.86 at the end of 2018 and remained nearly stable in 2019 at $39.91. A slight decrease occurred in 2020 with the price falling to $38.75. Subsequent years saw a recovery and growth, reaching $43.71 in 2021 and further increasing to $47.18 in 2022, representing an overall positive momentum in market valuation.
Free Cash Flow to Equity (FCFE) per Share: The FCFE per share experienced significant volatility during the period. It began at $1.02 in 2018 and increased notably to $2.99 in 2019, indicating improved cash flow generation. However, there was a sharp decline in 2020 to only $0.10, suggesting potential disruptions or increased capital expenditures impacting free cash flow. The value partially recovered in 2021 to $0.93 but declined again to $0.55 in 2022, pointing to continued variability and possible challenges in maintaining consistent free cash flow levels.
Price to FCFE (P/FCFE) Ratio: The P/FCFE ratio demonstrated considerable fluctuations reflecting the changes in FCFE per share and share price dynamics. In 2018, the ratio was relatively high at 39.1, then declined sharply to 13.34 in 2019, corresponding with the rise in FCFE per share. In 2020, the ratio surged dramatically to 378.73 due to the precipitous drop in FCFE per share despite a stable share price, indicating potential overvaluation relative to free cash flow. The ratio decreased to 46.89 in 2021 as FCFE rebounded, but increased again to 86.23 in 2022 amid declining FCFE per share and rising share prices, suggesting ongoing volatility and mixed market sentiment regarding cash flow sustainability.

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Boston Scientific Corp. (NYSE:BSX)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical