Price to FCFE (P/FCFE)
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- Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value (EV)
- Net Profit Margin since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Free Cash Flow to Equity (FCFE)
RTX Corp., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The financial information reveals significant fluctuations in free cash flow to equity (FCFE) over the observed period. While net cash flows from operating activities demonstrate a generally positive trend, FCFE exhibits a more volatile pattern.
- Net Cash Flows from Operating Activities
- Net cash flows from operating activities increased modestly from US$7,142 million in 2021 to US$7,168 million in 2022. A more substantial increase was observed in 2023, reaching US$7,883 million, before declining to US$7,159 million in 2024. A significant surge occurred in 2025, with operating cash flows reaching US$10,567 million.
- Free Cash Flow to Equity (FCFE)
- FCFE experienced a notable increase from US$4,054 million in 2021 to US$5,367 million in 2022. This was followed by a dramatic increase in 2023, reaching US$17,367 million. However, FCFE decreased substantially in 2024 to US$2,030 million. A moderate recovery was seen in 2025, with FCFE rising to US$4,511 million. The volatility in FCFE suggests potential impacts from financing activities or significant changes in capital expenditure not fully reflected in operating cash flows.
The divergence between the relatively stable growth in operating cash flows and the fluctuating FCFE indicates that factors beyond core operations are significantly influencing the cash available to equity holders. The large increase in FCFE in 2023, followed by a sharp decline in 2024, warrants further investigation to understand the underlying drivers of these changes. The recovery in 2025, while positive, does not fully restore FCFE to the levels seen in 2023.
- Relationship between Operating Cash Flow and FCFE
- While operating cash flow generally increased over the period, the FCFE trend was less consistent. This suggests that changes in items such as debt issuance/repayment, share repurchases, or dividend payments are having a considerable impact on the cash available to equity holders. A detailed analysis of these financing activities is necessary to fully understand the FCFE fluctuations.
Price to FCFE Ratio, Current
RTX Corp., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Boeing Co. | |
| Caterpillar Inc. | |
| Eaton Corp. plc | |
| GE Aerospace | |
| Honeywell International Inc. | |
| Lockheed Martin Corp. | |
| P/FCFE, Sector | |
| Capital Goods | |
| P/FCFE, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2025-12-31).
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.
Price to FCFE Ratio, Historical
RTX Corp., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Boeing Co. | ||||||
| Caterpillar Inc. | ||||||
| Eaton Corp. plc | ||||||
| GE Aerospace | ||||||
| Honeywell International Inc. | ||||||
| Lockheed Martin Corp. | ||||||
| P/FCFE, Sector | ||||||
| Capital Goods | ||||||
| P/FCFE, Industry | ||||||
| Industrials | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
3 2025 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of RTX Corp. Annual Report.
5 2025 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The Price to Free Cash Flow to Equity (P/FCFE) ratio exhibits significant fluctuations over the observed period. Initial values demonstrate a decline, followed by a substantial increase and subsequent moderation. A detailed examination of the components and the resulting ratio reveals key trends.
- Share Price
- The share price generally increased over the period, although not consistently. From 2021 to 2022, a modest increase is noted. A decrease occurred between 2022 and 2023, followed by a dramatic rise in 2024 and a further, substantial increase in 2025. This suggests increasing investor confidence or potentially speculative activity in later years.
- FCFE per Share
- Free Cash Flow to Equity per share experienced considerable volatility. It increased significantly from 2021 to 2023, indicating improved cash generation for equity holders. However, a substantial decline occurred in 2024, followed by a partial recovery in 2025, though remaining below the 2023 peak. This suggests fluctuating operational performance or changes in financing activities impacting cash available to equity investors.
- P/FCFE Ratio
- The P/FCFE ratio began at 35.07 in 2021, decreasing to 26.71 in 2022. A marked decline continued into 2023, reaching a low of 7.05. This initial downward trend suggests the share price was not keeping pace with the growth in FCFE, or that investors were becoming more discerning. The ratio then increased sharply to 85.26 in 2024, driven by the substantial increase in share price coupled with a decrease in FCFE per share. The ratio moderated somewhat in 2025, settling at 59.11, reflecting continued high share price and a modest increase in FCFE per share. The large swings in the P/FCFE ratio indicate a changing perception of value, potentially influenced by market sentiment and company-specific events.
The interplay between share price and FCFE per share is critical to understanding the P/FCFE ratio’s movements. The significant increase in the ratio in 2024, despite a decrease in FCFE per share, highlights the dominance of share price appreciation in determining valuation. The subsequent moderation in 2025 suggests a potential re-evaluation by the market as FCFE per share began to recover.