.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Delta Air Lines Inc., FCFE calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | |
|---|---|---|---|---|---|---|
| | Net income | |||||
| | Net noncash charges | |||||
| | Changes in certain assets and liabilities | |||||
| | Net cash provided by operating activities | |||||
| | Property and equipment additions | |||||
| | Payments on long-term debt and capital lease obligations | |||||
| | Proceeds from long-term obligations | |||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Delta Air Lines 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. | Delta Air Lines Inc.'s FCFE declined from 2015 to 2016 and from 2016 to 2017. |
Price to FCFE Ratio, Current
Delta Air Lines 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 | |
| Booking Holdings Inc. | |
| Marriott International Inc. | |
| McDonald's Corp. | |
| Starbucks Corp. | |
| P/FCFE, Sector | |
| Travel & Leisure | |
| P/FCFE, Industry | |
| Consumer Services | |
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
Delta Air Lines 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 | ||||||
| Booking Holdings Inc. | ||||||
| Marriott International Inc. | ||||||
| McDonald's Corp. | ||||||
| Starbucks Corp. | ||||||
| P/FCFE, Sector | ||||||
| Travel & Leisure | ||||||
| P/FCFE, Industry | ||||||
| Consumer Services | ||||||
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of Delta Air Lines 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. | Delta Air Lines Inc.'s P/FCFE ratio increased from 2015 to 2016 and from 2016 to 2017. |
