Raytheon Co., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Net income attributable to Raytheon Company	3,343)	2,909)	2,024)	2,211)	2,074)
Net loss attributable to noncontrolling interests in subsidiaries	(14)	(27)	(23)	(37)	(7)
Net noncash charges	605)	722)	917)	656)	474)
Changes in assets and liabilities	548)	(176)	(171)	22)	(195)
Net cash provided by operating activities	4,482)	3,428)	2,747)	2,852)	2,346)
Additions to property, plant and equipment	(942)	(763)	(543)	(561)	(406)
Proceeds from sales of property, plant and equipment	25)	2)	46)	34)	59)
Additions to capitalized internal-use software	(65)	(58)	(68)	(64)	(51)
Net borrowings (payments) on commercial paper	(300)	—)	300)	—)	—)
Repayments of long-term debt	—)	—)	(591)	—)	—)
Loss on repayment of long-term debt	—)	—)	(38)	—)	—)
Free cash flow to equity (FCFE)	3,200)	2,609)	1,853)	2,261)	1,948)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

Download chart

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Raytheon Co. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Raytheon Co. FCFE increased from 2017 to 2018 and from 2018 to 2019.

Raytheon Co., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	278,441,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	3,200)
FCFE per share	11.49
Current share price (P)	229.76
Valuation Ratio
P/FCFE	19.99
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	15.11
Cummins Inc.	24.35
Eaton Corp. plc	36.92
General Electric Co.	267.45
Honeywell International Inc.	25.55
Lockheed Martin Corp.	13.79
RTX Corp.	7.79
P/FCFE, Sector
Capital Goods	32.07
P/FCFE, Industry
Industrials	35.83

Based on: 10-K (reporting date: 2019-12-31).

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.

Raytheon Co., 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	278,441,000	282,239,000	288,506,000	292,880,000	298,998,000
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	3,200)	2,609)	1,853)	2,261)	1,948)
FCFE per share³	11.49	9.24	6.42	7.72	6.52
Share price^1, 4	229.76	180.94	212.58	151.96	126.57
Valuation Ratio
P/FCFE⁵	19.99	19.57	33.10	19.68	19.43
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	19.60	—	—	—	—
Caterpillar Inc.	11.07	—	—	—	—
Cummins Inc.	10.85	—	—	—	—
Eaton Corp. plc	11.12	—	—	—	—
General Electric Co.	—	—	—	—	—
Honeywell International Inc.	21.75	—	—	—	—
Lockheed Martin Corp.	28.62	—	—	—	—
RTX Corp.	28.09	—	—	—	—
P/FCFE, Sector
Capital Goods	26.31	—	—	—	—
P/FCFE, Industry
Industrials	27.50	—	—	—	—

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,200,000,000 ÷ 278,441,000 = 11.49

⁴ Closing price as at the filing date of Raytheon Co. Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 229.76 ÷ 11.49 = 19.99

⁶ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Raytheon Co. P/FCFE ratio decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Raytheon Co. (NYSE:RTN)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical