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Eli Lilly & Co. (LLY)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Eli Lilly & Co., FCFE calculation

US$ in thousands

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12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income (loss) 3,232,000  (204,100) 2,737,600  2,408,400  2,390,500 
Net noncash charges 4,671,200  2,614,800  2,597,500  1,282,400  2,015,500 
Other changes in operating assets and liabilities, net of acquisitions and divestitures (2,378,700) 3,204,900  (484,100) (918,000) (38,900)
Net cash provided by operating activities 5,524,500  5,615,600  4,851,000  2,772,800  4,367,100 
Purchases of property and equipment (1,210,600) (1,076,800) (1,037,000) (1,066,200) (1,162,600)
Proceeds from disposals of property and equipment 3,600  40,700  73,400  92,600  15,300 
Net change in short-term borrowings (2,197,900) 1,397,500  1,293,200  (2,680,600) 2,680,600 
Proceeds from issuance of long-term debt 2,477,700  2,232,000  1,206,600  4,454,700  992,900 
Repayments of long-term debt (1,009,100) (630,600) (200) (1,955,700) (1,034,800)
Free cash flow to equity (FCFE) 3,588,200  7,578,400  6,387,000  1,617,600  5,858,500 

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-19).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Eli Lilly & 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. Eli Lilly & Co.’s FCFE increased from 2016 to 2017 but then decreased significantly from 2017 to 2018.

Price to FCFE Ratio, Current

Eli Lilly & Co., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 960,130,771
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands) 3,588,200 
FCFE per share 3.74
Current share price (P) 121.53
Valuation Ratio
P/FCFE 32.52
Benchmarks
P/FCFE, Competitors1
Abbott Laboratories —
AbbVie Inc. 8.13
Allergan PLC —
Amgen Inc. 14.91
Biogen Inc. 9.90
Bristol-Myers Squibb Co. 23.41
Gilead Sciences Inc. 67.87
Johnson & Johnson 25.52
Merck & Co. Inc. 24.83
Pfizer Inc. 16.71
Regeneron Pharmaceuticals Inc. 22.81
P/FCFE, Sector
Pharmaceuticals & Biotechnology 22.90
P/FCFE, Industry
Health Care 24.96

Based on: 10-K (filing date: 2019-02-19).

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.

Price to FCFE Ratio, Historical

Eli Lilly & Co., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 1,035,418,562 1,095,597,580 1,103,352,450 1,106,093,485 1,111,103,942
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in thousands)2 3,588,200  7,578,400  6,387,000  1,617,600  5,858,500 
FCFE per share3 3.47 6.92 5.79 1.46 5.27
Share price1, 4 122.13 77.55 80.36 72.61 71.12
Valuation Ratio
P/FCFE5 35.24 11.21 13.88 49.65 13.49
Benchmarks
P/FCFE, Competitors6
Abbott Laboratories — 70.38 5.13 18.90 21.25
AbbVie Inc. 7.33 19.98 8.15 3.73 35.01
Allergan PLC — 26.66 — 4.09 15.16
Amgen Inc. 12.46 11.98 9.37 11.59 17.65
Biogen Inc. 12.11 34.09 15.05 6.58 34.98
Bristol-Myers Squibb Co. 18.62 20.01 52.51 — 45.57
Gilead Sciences Inc. 67.92 5.70 4.79 4.29 10.09
Johnson & Johnson 24.90 14.21 14.18 16.84 17.94
Merck & Co. Inc. 22.76 43.01 24.26 9.61 63.61
Pfizer Inc. 18.96 16.06 12.30 12.81 13.27
Regeneron Pharmaceuticals Inc. 24.51 32.42 41.47 75.10 218.80
P/FCFE, Sector
Pharmaceuticals & Biotechnology 22.00 15.98 13.19 9.22 19.02
P/FCFE, Industry
Health Care 23.26 16.16 14.44 8.46 17.92

Based on: 10-K (filing date: 2019-02-19), 10-K (filing date: 2018-02-20), 10-K (filing date: 2017-02-21), 10-K (filing date: 2016-02-19), 10-K (filing date: 2015-02-19).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2018 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,588,200,000 ÷ 1,035,418,562 = 3.47

4 Closing price as at the filing date of Eli Lilly & Co.’s Annual Report.

5 2018 Calculation
P/FCFE = Share price ÷ FCFE per share
= 122.13 ÷ 3.47 = 35.24

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Eli Lilly & Co.’s P/FCFE ratio decreased from 2016 to 2017 but then increased from 2017 to 2018 exceeding 2016 level.