.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
FedEx Corp., FCFE calculation
USD $ in millions
| 12 months ended | May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | |
|---|---|---|---|---|---|---|---|
| | Net income | ||||||
| | Net noncash charges | ||||||
| | Changes in assets and liabilities | ||||||
| | Cash provided by operating activities | ||||||
| | Capital expenditures | ||||||
| | Principal payments on debt | ||||||
| | Proceeds from debt issuances | ||||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to FedEx 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. | FedEx Corp.'s FCFE increased from 2015 to 2016 but then declined significantly from 2016 to 2017. |
Price to FCFE Ratio, Current
FedEx Corp., 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 | |
| Union Pacific Corp. | |
| United Parcel Service Inc. | |
| P/FCFE, Sector | |
| Industrial Transportation | |
| 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
FedEx Corp., historical P/FCFE calculation, comparison to benchmarks
| May 31, 2017 | May 31, 2016 | May 31, 2015 | May 31, 2014 | May 31, 2013 | May 31, 2012 | ||
|---|---|---|---|---|---|---|---|
| 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 | |||||||
| Union Pacific Corp. | |||||||
| United Parcel Service Inc. | |||||||
| P/FCFE, Sector | |||||||
| Industrial Transportation | |||||||
| P/FCFE, Industry | |||||||
| Industrials | |||||||
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of FedEx Corp.'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. | FedEx Corp.'s P/FCFE ratio declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level. |
