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Exxon Mobil Corp. (XOM)


Price to FCFE (P/FCFE)

Difficulty: Intermediate


Free Cash Flow to Equity (FCFE)

Exxon Mobil Corp., FCFE calculation

USD $ in millions

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12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income attributable to ExxonMobil 20,840  19,710  7,840  16,150  32,520 
Net income attributable to noncontrolling interests 581  138  535  401  1,095 
Net noncash charges 15,949  10,867  15,099  16,906  16,433 
Changes in operational working capital, excluding cash and debt (1,356) (649) (1,392) (3,113) (4,932)
Net cash provided by operating activities 36,014  30,066  22,082  30,344  45,116 
Additions to property, plant and equipment (19,574) (15,402) (16,163) (26,490) (32,952)
Additions to long-term debt 46  60  12,066  8,028  5,731 
Reductions in long-term debt —  —  —  (26) (69)
Additions to short-term debt —  1,735  —  —  — 
Reductions in short-term debt (4,752) (5,024) (314) (506) (745)
Additions/(reductions) in commercial paper, and debt with three months or less maturity (219) 2,181  (7,459) 1,759  2,049 
Free cash flow to equity (FCFE) 11,515  13,616  10,212  13,109  19,130 

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Exxon Mobil Corp.’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. Exxon Mobil Corp.’s FCFE increased from 2016 to 2017 but then slightly declined from 2017 to 2018 not reaching 2016 level.

Price to FCFE Ratio, Current

Exxon Mobil Corp., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 4,231,093,914
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions) 11,515 
FCFE per share 2.72
Current share price (P) 74.99
Ratio
P/FCFE 27.55
Benchmarks
P/FCFE, Competitors
Chevron Corp. 19.33
ConocoPhillips 30.02
EOG Resources Inc. 37.64
Occidental Petroleum Corp. 12.34
Phillips 66 7.74
P/FCFE, Sector
Oil & Gas Producers 20.75
P/FCFE, Industry
Oil & Gas 21.30

Based on: 10-K (filing date: 2019-02-27).

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

Exxon Mobil Corp., 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 4,234,802,431 4,237,462,159 4,146,513,819 4,152,756,609 4,194,690,266
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)2 11,515  13,616  10,212  13,109  19,130 
FCFE per share4 2.72 3.21 2.46 3.16 4.56
Share price1, 3 79.47 75.74 80.93 81.52 89.60
Ratio
P/FCFE5 29.23 23.57 32.86 25.82 19.65
Benchmarks
P/FCFE, Competitors
Chevron Corp. 18.41 95.23 237.62 59.08
ConocoPhillips 34.71 7.60 18.81 21.77 39.53
EOG Resources Inc. 40.59 131.44
Occidental Petroleum Corp. 15.74 37.42 38.51
Phillips 66 7.41 27.96 29.60 220.02 19.18
P/FCFE, Sector
Oil & Gas Producers 21.61 31.06 41.35 46.00 30.20
P/FCFE, Industry
Oil & Gas 22.09 35.48 45.00 28.84 24.21

Based on: 10-K (filing date: 2019-02-27), 10-K (filing date: 2018-02-28), 10-K (filing date: 2017-02-22), 10-K (filing date: 2016-02-24), 10-K (filing date: 2015-02-25).

1 Data adjusted for splits and stock dividends.

2 See Details »

3 Close price on the filing date of Exxon Mobil Corp.’s Annual Report.

2018 Calculations

4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 11,515,000,000 ÷ 4,234,802,431 = 2.72

5 P/FCFE = Share price ÷ FCFE per share
= 79.47 ÷ 2.72 = 29.23

Ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Exxon Mobil Corp.’s P/FCFE ratio declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.