Price to FCFE (P/FCFE)
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- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Reportable Segments
- Enterprise Value to FCFF (EV/FCFF)
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Free Cash Flow to Equity (FCFE)
Time Warner Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
The financial data reveals notable trends in cash flows over the analyzed five-year period.
- Cash Provided by Operations
- The cash generated from operations remained relatively stable between 2013 and 2015, starting at 3,716 million USD in 2013 and slightly increasing to 3,851 million USD by 2015. Beginning in 2016, there was a pronounced upward trend, with cash from operations increasing significantly to 4,683 million USD and further reaching 5,094 million USD in 2017. This upward trajectory in later years suggests improving operational efficiency or stronger revenue generation leading to higher operational cash inflows.
- Free Cash Flow to Equity (FCFE)
- The FCFE showed more variability across the periods. Beginning at 3,371 million USD in 2013, it rose sharply to a peak of 5,533 million USD in 2014. This peak was followed by a decline in 2015 to 4,841 million USD and a further slight decrease to 4,763 million USD in 2016. By 2017, FCFE had dropped more notably to 3,668 million USD. Despite the decline after 2014, the FCFE remained above the 2013 baseline until 2017 when it nearly returned to the initial level. The divergence between consistently increasing cash from operations and the fluctuating FCFE indicates potential changes in capital expenditures, financing activities, or other cash outflows affecting equity holders.
Overall, while operational cash generation strengthened significantly over the latter years, the free cash available to equity holders showed a peak followed by a gradual decline, suggesting variations in investment or financing patterns despite operational improvements.
Price to FCFE Ratio, Current
Time Warner Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Alphabet Inc. | |
| Comcast Corp. | |
| Meta Platforms Inc. | |
| Netflix Inc. | |
| Take-Two Interactive Software Inc. | |
| Walt Disney Co. | |
Based on: 10-K (reporting date: 2017-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Time Warner Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).
1 Data adjusted for splits and stock dividends.
3 2017 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Time Warner Inc. Annual Report.
5 2017 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
- Share Price Trend
- The share price experienced fluctuations over the five-year period. It increased from $64.69 at the end of 2013 to a peak of $97.06 in 2016, representing a substantial appreciation. However, it slightly declined to $94.37 in 2017, indicating some volatility but overall an upward movement compared to the initial value.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share showed a notable increase from $3.78 in 2013 to $6.66 in 2014, marking a significant improvement. It then decreased marginally to $6.13 in 2015 and stabilized near that level at $6.15 in 2016. In 2017, FCFE per share declined to $4.70, indicating some reduction in the company's capacity to generate free cash flow available to equity holders.
- Price to FCFE Ratio
- The P/FCFE ratio demonstrated a fluctuating pattern across the observed years. It started at 17.13 in 2013, decreased steadily to 10.88 in 2015, suggesting the shares were becoming more attractively valued relative to free cash flow. Afterwards, there was an increase to 15.78 in 2016 and further to 20.06 in 2017, indicating the market valuation relative to cash flow per share rose significantly despite the decline in FCFE per share in 2017.
- Overall Assessment
- The data reveals that while free cash flows per share showed an overall increasing trend initially, the later decline suggests some pressure on cash generation ability. The share price generally increased, with the highest valuation occurring when FCFE per share was relatively stable. The P/FCFE ratio’s movement implies variable market sentiment, with valuation multiples contracting when cash flows improved and expanding when cash flow decreased, possibly reflecting changing investor expectations or risk assessments over the period.