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Price to FCFE (P/FCFE)

Difficulty: Intermediate


Free Cash Flow to Equity (FCFE)

ConocoPhillips, FCFE calculation

USD $ in millions

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12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net income (loss) attributable to ConocoPhillips (855) (3,615) (4,428) 6,869  9,156 
Net income attributable to noncontrolling interests 62  56  57  69  59 
Net noncash charges 7,855  8,443  11,965  10,159  6,538 
Working capital adjustments 15  (481) (22) (505) 48 
Net cash provided by operating activities 7,077  4,403  7,572  16,592  15,801 
Capital expenditures and investments (4,591) (4,869) (10,050) (17,085) (15,537)
Proceeds from asset dispositions 13,860  1,286  1,952  1,603  10,220 
Issuance of debt 4,594  2,498  2,994 
Repayment of debt (7,876) (2,251) (103) (2,014) (946)
Free cash flow to equity (FCFE) 8,470  3,163  1,869  2,090  9,538 
Item Description The company
FCFE Free cash flow to equity is the cash flow available to ConocoPhillips'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. ConocoPhillips's FCFE increased from 2015 to 2016 and from 2016 to 2017.

Price to FCFE Ratio, Current

ConocoPhillips, current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 1,162,095,308
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions) 8,470 
FCFE per share 7.29
Current share price (P) 69.41
Ratio
P/FCFE 9.52
Benchmarks
P/FCFE, Competitors
Chevron Corp.
EOG Resources Inc.
Exxon Mobil Corp. 24.25
Occidental Petroleum Corp. 42.71
Phillips 66 32.42
P/FCFE, Sector
Oil & Gas Producers 33.57
P/FCFE, Industry
Oil & Gas 39.04

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

ConocoPhillips, historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 1,174,577,506 1,235,832,469 1,236,202,726 1,231,461,668 1,226,104,592
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)2 8,470  3,163  1,869  2,090  9,538 
FCFE per share4 7.21 2.56 1.51 1.70 7.78
Share price1, 3 54.84 48.13 32.92 67.09 66.52
Ratio
P/FCFE5 7.60 18.81 21.77 39.53 8.55
Benchmarks
P/FCFE, Competitors
Chevron Corp. 95.23 237.62 59.08 40.87
EOG Resources Inc. 131.44
Exxon Mobil Corp. 23.57 32.86 25.82 19.65 18.12
Occidental Petroleum Corp. 37.42 38.51 23.44
Phillips 66 27.96 29.60 220.02 19.18 14.01
P/FCFE, Sector
Oil & Gas Producers 31.06 41.35 46.00 30.20 20.04
P/FCFE, Industry
Oil & Gas 37.65 64.16 22.88 24.44 18.55

1 Data adjusted for splits and stock dividends.

2 See Details »

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

2017 Calculations

4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,470,000,000 ÷ 1,174,577,506 = 7.21

5 P/FCFE = Share price ÷ FCFE per share
= 54.84 ÷ 7.21 = 7.60

Ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders' equity. ConocoPhillips's P/FCFE ratio declined from 2015 to 2016 and from 2016 to 2017.