.Price to FCFE (P/FCFE)
Difficulty: Intermediate
Free Cash Flow to Equity (FCFE)
Johnson & Johnson, FCFE calculation
USD $ in millions
| 12 months ended | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 28, 2014 | Dec 29, 2013 | |
|---|---|---|---|---|---|---|
| | Net earnings | |||||
| | Net noncash charges | |||||
| | Changes in assets and liabilities, net of effects from acquisitions and divestitures | |||||
| | Net cash flows from operating activities | |||||
| | Additions to property, plant and equipment | |||||
| | Proceeds from short-term debt | |||||
| | Retirement of short-term debt | |||||
| | Proceeds from long-term debt, net of issuance costs | |||||
| | Retirement of long-term debt | |||||
| | Free cash flow to equity (FCFE) |
| Item | Description | The company |
|---|---|---|
| FCFE | Free cash flow to equity is the cash flow available to Johnson & Johnson'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. | Johnson & Johnson's FCFE increased from 2015 to 2016 and from 2016 to 2017. |
Price to FCFE Ratio, Current
Johnson & Johnson, 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 | |
| Abbott Laboratories | |
| AbbVie Inc. | |
| Allergan PLC | |
| Amgen Inc. | |
| Biogen Inc. | |
| Bristol-Myers Squibb Co. | |
| Celgene Corp. | |
| Eli Lilly & Co. | |
| Gilead Sciences Inc. | |
| Merck & Co. Inc. | |
| Pfizer Inc. | |
| Regeneron Pharmaceuticals Inc. | |
| P/FCFE, Sector | |
| Pharmaceuticals & Biotechnology | |
| P/FCFE, Industry | |
| Health Care | |
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
Johnson & Johnson, historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 28, 2014 | Dec 29, 2013 | ||
|---|---|---|---|---|---|---|
| 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 | ||||||
| Abbott Laboratories | ||||||
| AbbVie Inc. | ||||||
| Allergan PLC | ||||||
| Amgen Inc. | ||||||
| Biogen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Celgene Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| P/FCFE, Sector | ||||||
| Pharmaceuticals & Biotechnology | ||||||
| P/FCFE, Industry | ||||||
| Health Care | ||||||
1 Data adjusted for splits and stock dividends.
3 Close price on the filing date of Johnson & Johnson'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. | Johnson & Johnson's P/FCFE ratio declined from 2015 to 2016 but then slightly increased from 2016 to 2017. |
