Price to FCFE (P/FCFE)
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Sales (P/S) since 2005
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
GE Aerospace, FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
- Cash from Operating Activities
- The cash from operating activities shows significant fluctuations over the analyzed period. In 2020, the figure stood at 3,597 million USD, sharply declining to 888 million USD in 2021. However, it rebounded markedly in 2022 to 5,864 million USD and remained relatively stable in 2023 and 2024, with amounts of 5,570 million USD and 5,817 million USD respectively. This pattern suggests a temporary dip in operational cash generation in 2021, followed by a strong recovery and stabilization in subsequent years.
- Free Cash Flow to Equity (FCFE)
- The FCFE exhibits a volatile trend with significant negative values in the initial two years, recorded at -17,178 million USD in 2020 and worsening to -44,369 million USD in 2021. This indicates substantial outflows or capital expenditures impacting equity holders negatively during this period. A notable turnaround occurs in 2022 with a positive FCFE of 1,992 million USD, though the value then decreases to 660 million USD in 2023 before rising again to 4,113 million USD in 2024. These movements imply a challenging period followed by a gradual improvement in the company's ability to generate free cash flow available to equity shareholders.
- Overall Financial Cash Flow Trends
- The data indicates a period of financial stress or heavy investment around 2020 and 2021, as reflected in both operating cash declines and highly negative FCFE. The subsequent recovery in operating cash and the shift to positive FCFE from 2022 onwards suggest effective management measures or improving operational efficiency. The stability in operating cash flows and the growth in FCFE towards 2024 are indicative of strengthening cash generation and a potentially enhanced capacity to support shareholder value.
Price to FCFE Ratio, Current
GE Aerospace, current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| RTX Corp. | |
| P/FCFE, Sector | |
| Capital Goods | |
| P/FCFE, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2024-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
GE Aerospace, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| RTX Corp. | ||||||
| P/FCFE, Sector | ||||||
| Capital Goods | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of GE Aerospace Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The financial data for the given periods shows several notable trends in the share price, Free Cash Flow to Equity (FCFE) per share, and their valuation metric P/FCFE.
- Share Price
- The share price experienced a general upward trend over the five-year span. It began at $93.84 at the end of 2020, slightly increasing to $96.83 in 2021. The price then decreased to $81.29 in 2022, but subsequently rose sharply to $136.54 in 2023 and reached $204.11 by the end of 2024. This indicates a period of volatility followed by strong price appreciation in the most recent years.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share exhibited considerable volatility and an improvement trend. Initially, there were negative values of -$15.67 and -$40.36 for 2020 and 2021 respectively, signaling cash outflow to equity holders during those years. However, in 2022, the FCFE per share shifted to a positive $1.83, suggesting a return to positive free cash flow generation. This positive trend continued modestly in 2023 at $0.61 and improved further to $3.83 in 2024. Overall, this reflects a recovery from a negative cash flow position to increasing positive cash returns to shareholders.
- P/FCFE Ratio
- The P/FCFE ratio was only available from 2022 onwards and displayed significant fluctuations. In 2022, it was 44.45, which then surged dramatically to 225.15 in 2023 before dropping to 53.26 in 2024. The extremely high ratio in 2023 likely reflected the combination of a relatively low FCFE per share ($0.61) against a rising share price, suggesting market expectations of future growth or possibly volatility in cash flow metrics. The reduction in 2024 indicates a normalization as both share price and FCFE per share increased substantially.
In summary, the data portrays a company that faced challenges reflected in negative free cash flow to equity during the early period, but has since experienced positive cash flow recovery and significant appreciation in share price. The market’s valuation of the company's cash flow reflects high growth expectations, particularly around 2023, with some stabilization evident in the subsequent year.