Northrop Grumman Corp., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net earnings	4,896)	7,005)	3,189)	2,248)	3,229)
Net noncash charges	(1,395)	(3,619)	889)	1,921)	1,746)
Changes in assets and liabilities	(600)	181)	227)	128)	(1,148)
Net cash provided by operating activities	2,901)	3,567)	4,305)	4,297)	3,827)
Capital expenditures	(1,435)	(1,415)	(1,420)	(1,264)	(1,249)
Net proceeds from issuance of long-term debt	—)	—)	2,239)	—)	—)
Payments of long-term debt	—)	(2,236)	(1,027)	(500)	(2,276)
Payments to credit facilities	—)	—)	(78)	(31)	(320)
Net borrowings on (repayments of) commercial paper	—)	—)	—)	(198)	198)
Free cash flow to equity (FCFE)	1,466)	(84)	4,019)	2,304)	180)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Northrop Grumman 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.	Northrop Grumman Corp. FCFE decreased from 2020 to 2021 but then slightly increased from 2021 to 2022.

Northrop Grumman Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	151,859,445
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,466)
FCFE per share	9.65
Current share price (P)	457.68
Valuation Ratio
P/FCFE	47.41
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	15.35
Cummins Inc.	24.31
Eaton Corp. plc	37.76
General Electric Co.	269.26
Honeywell International Inc.	25.57
Lockheed Martin Corp.	13.68
RTX Corp.	7.76
P/FCFE, Sector
Capital Goods	28.44
P/FCFE, Industry
Industrials	27.03

Based on: 10-K (reporting date: 2022-12-31).

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.

Northrop Grumman Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
No. shares of common stock outstanding¹	153,053,371	156,101,934	166,718,384	167,637,130	169,737,507
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,466)	(84)	4,019)	2,304)	180)
FCFE per share³	9.58	-0.54	24.11	13.74	1.06
Share price^1, 4	443.47	373.99	293.03	384.87	275.55
Valuation Ratio
P/FCFE⁵	46.30	—	12.16	28.00	259.84
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	120.43	—	6.78	19.60	—
Caterpillar Inc.	24.03	16.36	25.22	11.07	—
Cummins Inc.	9.10	20.97	9.53	10.85	—
Eaton Corp. plc	28.68	24.43	25.59	11.12	—
General Electric Co.	44.45	—	—	—	—
Honeywell International Inc.	27.59	46.23	12.59	21.75	—
Lockheed Martin Corp.	11.63	14.65	15.57	28.62	—
RTX Corp.	26.71	35.07	—	28.09	—
P/FCFE, Sector
Capital Goods	24.08	—	56.46	26.31	—
P/FCFE, Industry
Industrials	22.81	—	43.78	27.50	—

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,466,000,000 ÷ 153,053,371 = 9.58

⁴ Closing price as at the filing date of Northrop Grumman Corp. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 443.47 ÷ 9.58 = 46.30

⁶ Click competitor name to see calculations.

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Northrop Grumman Corp. (NYSE:NOC)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical