Stock Analysis on Net
Stock Analysis on Net
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Procter & Gamble Co. (NYSE:PG)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Procter & Gamble Co., FCFE calculation

US$ in millions

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12 months ended: Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
Net earnings attributable to Procter & Gamble 13,027  3,897  9,750  15,326  10,508  7,036 
Net earnings attributable to noncontrolling interests 76  69  111  85  96  108 
Net noncash charges 3,090  10,908  1,986  (2,215) 3,191  6,850 
Change in operating assets and liabilities 1,210  368  3,020  (443) 1,640  614 
Operating activities 17,403  15,242  14,867  12,753  15,435  14,608 
Capital expenditures (3,073) (3,347) (3,717) (3,384) (3,314) (3,736)
Proceeds from asset sales 30  394  269  571  432  4,497 
Increases (reductions) in short-term debt 2,345  (2,215) (3,437) 2,727  (418) (2,580)
Additions to long-term debt 4,951  2,367  5,072  3,603  3,916  2,138 
Reductions of long-term debt (2,447) (969) (2,873) (4,931) (2,213) (3,512)
Free cash flow to equity (FCFE) 19,209  11,472  10,181  11,339  13,838  11,415 

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Procter & Gamble 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. Procter & Gamble Co.’s FCFE increased from 2018 to 2019 and from 2019 to 2020.

Price to FCFE Ratio, Current

Procter & Gamble Co., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 2,462,476,044
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 19,209 
FCFE per share 7.80
Current share price (P) 135.11
Valuation Ratio
P/FCFE 17.32
Benchmarks
P/FCFE, Industry
Consumer Goods 23.47

Based on: 10-K (filing date: 2020-08-06).

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

Procter & Gamble Co., historical P/FCFE calculation, comparison to benchmarks

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Jun 30, 2020 Jun 30, 2019 Jun 30, 2018 Jun 30, 2017 Jun 30, 2016 Jun 30, 2015
No. shares of common stock outstanding1 2,486,086,692 2,502,259,668 2,488,011,390 2,550,014,230 2,668,751,125 2,712,561,733
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 19,209  11,472  10,181  11,339  13,838  11,415 
FCFE per share3 7.73 4.58 4.09 4.45 5.19 4.21
Share price1, 4 132.71 114.28 82.64 91.44 85.99 75.48
Valuation Ratio
P/FCFE5 17.18 24.93 20.20 20.56 16.58 17.94
Benchmarks
P/FCFE, Industry
Consumer Goods 22.98 25.42 19.44 18.44 17.54 —

Based on: 10-K (filing date: 2020-08-06), 10-K (filing date: 2019-08-06), 10-K (filing date: 2018-08-07), 10-K (filing date: 2017-08-07), 10-K (filing date: 2016-08-09), 10-K (filing date: 2015-08-07).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 19,209,000,000 ÷ 2,486,086,692 = 7.73

4 Closing price as at the filing date of Procter & Gamble Co.’s Annual Report.

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 132.71 ÷ 7.73 = 17.18

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Procter & Gamble Co.’s P/FCFE ratio increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.