General Dynamics Corp., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net earnings	3,484)	3,345)	2,912)	2,955)	2,965)
Net noncash charges	1,091)	628)	1,203)	879)	783)
(Increase) decrease in assets, net of effects of business acquisitions	(1,495)	(664)	(1,157)	(1,348)	679)
Increase (decrease) in liabilities, net of effects of business acquisitions	(99)	(161)	921)	(288)	(1,928)
Net cash provided by operating activities	2,981)	3,148)	3,879)	2,198)	2,499)
Capital expenditures	(987)	(690)	(428)	(392)	(569)
Proceeds from (repayments of) commercial paper, net	(850)	850)	—)	—)	—)
Proceeds from fixed-rate notes	—)	6,461)	985)	992)	—)
Proceeds from floating-rate notes	—)	1,000)	—)	—)	—)
Repayment of fixed-rate notes	—)	—)	(900)	(500)	(500)
Free cash flow to equity (FCFE)	1,144)	10,769)	3,536)	2,298)	1,430)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to General Dynamics Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	General Dynamics Corp. FCFE increased from 2017 to 2018 but then decreased significantly from 2018 to 2019.

General Dynamics Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	286,972,150
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,144)
FCFE per share	3.99
Current share price (P)	132.43
Valuation Ratio
P/FCFE	33.22
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	16.25
Cummins Inc.	24.41
Eaton Corp. plc	37.12
General Electric Co.	264.02
Honeywell International Inc.	25.78
Lockheed Martin Corp.	13.62
RTX Corp.	7.73
P/FCFE, Sector
Capital Goods	32.35
P/FCFE, Industry
Industrials	35.85

Based on: 10-K (reporting date: 2019-12-31).

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.

General Dynamics Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
No. shares of common stock outstanding¹	289,627,333	288,235,928	296,933,621	302,742,234	311,161,810
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,144)	10,769)	3,536)	2,298)	1,430)
FCFE per share³	3.95	37.36	11.91	7.59	4.60
Share price^1, 4	186.25	173.48	209.53	183.04	132.26
Valuation Ratio
P/FCFE⁵	47.15	4.64	17.60	24.11	28.78
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	19.60	—	—	—	—
Caterpillar Inc.	11.07	—	—	—	—
Cummins Inc.	10.85	—	—	—	—
Eaton Corp. plc	11.12	—	—	—	—
General Electric Co.	—	—	—	—	—
Honeywell International Inc.	21.75	—	—	—	—
Lockheed Martin Corp.	28.62	—	—	—	—
RTX Corp.	28.09	—	—	—	—
P/FCFE, Sector
Capital Goods	26.31	—	—	—	—
P/FCFE, Industry
Industrials	27.50	—	—	—	—

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,144,000,000 ÷ 289,627,333 = 3.95

⁴ Closing price as at the filing date of General Dynamics Corp. Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 186.25 ÷ 3.95 = 47.15

⁶ Click competitor name to see calculations.

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Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	General Dynamics Corp. P/FCFE ratio decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

General Dynamics Corp. (NYSE:GD)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical