Union Pacific Corp. (UNP)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Union Pacific Corp., FCFE calculation

USD $ in millions

	12 months ended	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	Net income
	Net noncash charges
	Changes in current assets and liabilities
	Cash provided by operating activities
	Capital investments
	Proceeds from asset sales
	Debt issued
	Debt repaid
	Net issuance of commercial paper
	Debt exchange
	Free cash flow to equity (FCFE)

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Union Pacific Corp.’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.	Union Pacific Corp.’s FCFE increased from 2016 to 2017 and from 2017 to 2018.

Union Pacific Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
CSX Corp.
FedEx Corp.
United Parcel Service Inc.
P/FCFE, Sector
Industrial Transportation
P/FCFE, Industry
Industrials

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Union Pacific Corp., historical P/FCFE calculation, comparison to benchmarks

		Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	CSX Corp.
	FedEx Corp.
	United Parcel Service Inc.
	P/FCFE, Sector
	Industrial Transportation
	P/FCFE, Industry
	Industrials

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Union Pacific Corp.’s Annual Report.

2018 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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Ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Union Pacific Corp.’s P/FCFE ratio declined from 2016 to 2017 and from 2017 to 2018.

	Union Pacific Corp.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality