General Electric Co. (GE)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

General Electric Co., FCFE calculation

USD $ in millions

	12 months ended	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	Net earnings (loss) attributable to the Company
	Net (earnings) loss attributable to noncontrolling interests
	Net noncash charges
	(Increase) decrease in operating capital
	Cash from operating activities
	Additions to property, plant and equipment
	Dispositions of property, plant and equipment
	Additions to internal-use software
	Net increase (decrease) in borrowings, maturities of 90 days or less
	Net increase in bank deposits
	Newly issued debt, maturities longer than 90 days
	Repayments and other reductions, maturities longer than 90 days
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to General Electric 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.	General Electric Co.'s FCFE declined from 2015 to 2016 but then increased from 2016 to 2017 exceeding 2015 level.

General Electric Co., 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
3M Co.
Danaher Corp.
Honeywell International Inc.
P/FCFE, Sector
General Industrials
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.

General Electric Co., historical P/FCFE calculation, comparison to benchmarks

		Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	3M Co.
	Danaher Corp.
	Honeywell International Inc.
	P/FCFE, Sector
	General Industrials
	P/FCFE, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of General Electric Co.'s Annual Report.

2017 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders' equity.

	General Electric Co.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality