Union Pacific Corp., 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	5,919	5,966	10,712	4,233	4,772
Net noncash charges	2,860	2,846	(3,355)	2,547	2,749
Changes in current assets and liabilities	(170)	(126)	(127)	745	(177)
Cash provided by operating activities	8,609	8,686	7,230	7,525	7,344
Capital investments	(3,453)	(3,437)	(3,238)	(3,505)	(4,650)
Proceeds from asset sales	74	63	168	129	251
Debt issued	3,986	6,892	2,735	1,983	3,328
Debt repaid	(817)	(1,736)	(840)	(1,013)	(556)
Debt exchange	(387)	—	—	(191)	—
Net issuance of commercial paper	(6)	194	—	—	—
Free cash flow to equity (FCFE)	8,006	10,662	6,055	4,928	5,717

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

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 2017 to 2018 but then slightly decreased from 2018 to 2019 not reaching 2017 level.

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

No. shares of common stock outstanding	678,838,800
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	8,006
FCFE per share	11.79
Current share price (P)	199.80
Valuation Ratio
P/FCFE	16.94
Benchmarks
P/FCFE, Competitors¹
CSX Corp.	12.39
FedEx Corp.	19.69
Norfolk Southern Corp.	17.33
United Parcel Service Inc.	29.06
P/FCFE, Sector
Industrial Transportation	20.59
P/FCFE, Industry
Industrials	21.45

Based on: 10-K (filing date: 2020-02-07).

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.

Union Pacific Corp., 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	690,261,490	722,877,817	779,305,276	813,795,240	846,414,350
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	8,006	10,662	6,055	4,928	5,717
FCFE per share³	11.60	14.75	7.77	6.06	6.75
Share price^1, 4	183.83	161.72	127.28	108.51	75.03
Valuation Ratio
P/FCFE⁵	15.85	10.96	16.38	17.92	11.11
Benchmarks
P/FCFE, Competitors⁶
CSX Corp.	12.48	8.96	22.97	27.47	12.07
FedEx Corp.	38.51	135.12	62.69	5.79	13.80
Norfolk Southern Corp.	16.85	14.10	29.82	25.40	12.83
United Parcel Service Inc.	19.27	19.85	21.99	16.65	9.97
P/FCFE, Sector
Industrial Transportation	17.16	14.79	23.09	14.53	11.31
P/FCFE, Industry
Industrials	22.80	21.01	18.39	79.56	41.67

Based on: 10-K (filing date: 2020-02-07), 10-K (filing date: 2019-02-08), 10-K (filing date: 2018-02-09), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-05).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2019 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 8,006,000,000 ÷ 690,261,490 = 11.60

⁴ Closing price as at the filing date of Union Pacific Corp.’s Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 183.83 ÷ 11.60 = 15.85

⁶ Click competitor name to see calculations.

Valuation 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 decreased from 2017 to 2018 but then increased from 2018 to 2019 not reaching 2017 level.

Union Pacific Corp. (NYSE:UNP)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical