.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Caterpillar Inc., FCFE calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Profit (loss) attributable to common stockholders | |||||
| | Profit attributable to noncontrolling interests | |||||
| | Net noncash charges | |||||
| | Changes in assets and liabilities, net of acquisitions and divestitures | |||||
| | Net cash provided by operating activities | |||||
| | Capital expenditures, excluding equipment leased to others | |||||
| | Expenditures for equipment leased to others | |||||
| | Proceeds from disposals of leased assets and property, plant and equipment | |||||
| | Proceeds from debt issued, original maturities greater than three months | |||||
| | Payments on debt, original maturities greater than three months | |||||
| | Short-term borrowings, net, original maturities three months or less | |||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Caterpillar Inc.'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. | Caterpillar Inc.'s FCFE declined from 2015 to 2016 and from 2016 to 2017. |
Price to FCFE Ratio, Current
Caterpillar Inc., 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 | |
| Illinois Tool Works Inc. | |
| P/FCFE, Sector | |
| Industrial Engineering | |
| 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.
Price to FCFE Ratio, Historical
Caterpillar Inc., 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 | ||||||
| Illinois Tool Works Inc. | ||||||
| P/FCFE, Sector | ||||||
| Industrial Engineering | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of Caterpillar Inc.'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. | Caterpillar Inc.'s P/FCFE ratio increased from 2015 to 2016 and from 2016 to 2017. |
