Lockheed Martin 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	6,230	5,046	2,002	5,302	3,605
Net noncash charges	1,823	1,990	4,799	(245)	1,322
Changes in assets and liabilities	(742)	(3,898)	(325)	132	174
Net cash provided by operating activities	7,311	3,138	6,476	5,189	5,101
Capital expenditures	(1,484)	(1,278)	(1,177)	(1,063)	(939)
Proceeds from issuance of commercial paper, net	(600)	600	—	—	—
Repayments of long-term debt	(900)	(750)	—	(952)	—
Proceeds from the issuance of long-term debt	—	—	—	—	9,101
Proceeds from borrowings under revolving credit facilities	—	—	—	—	6,000
Repayments of borrowings under revolving credit facilities	—	—	—	—	(6,000)
Free cash flow to equity (FCFE)	4,327	1,710	5,299	3,174	13,263

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24).

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Lockheed Martin 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.	Lockheed Martin Corp.’s FCFE decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Lockheed Martin Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	279,542,050
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	4,327
FCFE per share	15.48
Current share price (P)	379.61
Valuation Ratio
P/FCFE	24.52
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	9.65
General Dynamics Corp.	34.70
Northrop Grumman Corp.	23.58
Raytheon Technologies Corp.	19.05
P/FCFE, Sector
Aerospace & Defense	17.49
P/FCFE, Industry
Industrials	20.80

Based on: 10-K (filing date: 2020-02-07).

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.

Lockheed Martin 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	281,937,366	282,562,534	285,570,742	290,315,668	305,487,347
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	4,327	1,710	5,299	3,174	13,263
FCFE per share³	15.35	6.05	18.56	10.93	43.42
Share price^1, 4	439.17	301.50	341.42	258.20	216.63
Valuation Ratio
P/FCFE⁵	28.62	49.82	18.40	23.62	4.99
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	19.60	15.23	15.94	12.75	9.86
General Dynamics Corp.	47.15	4.64	17.60	24.11	28.78
Northrop Grumman Corp.	28.00	259.84	5.94	16.31	14.90
Raytheon Technologies Corp.	28.09	6.94	14.93	10.56	12.16
P/FCFE, Sector
Aerospace & Defense	25.62	12.06	13.66	14.86	9.45
P/FCFE, Industry
Industrials	22.80	21.01	18.39	79.56	41.67

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-09), 10-K (filing date: 2016-02-24).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 4,327,000,000 ÷ 281,937,366 = 15.35

⁴ Closing price as at the filing date of Lockheed Martin Corp.’s Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 439.17 ÷ 15.35 = 28.62

⁶ Click competitor name to see calculations.

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Lockheed Martin Corp.’s P/FCFE ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

Lockheed Martin Corp. (NYSE:LMT)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical