Stock Analysis on Net
Stock Analysis on Net
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Union Pacific Corp. (NYSE:UNP)

Price to FCFE (P/FCFE)

Intermediate level


Free Cash Flow to Equity (FCFE)

Union Pacific Corp., FCFE calculation

US$ in millions

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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.

Price to FCFE Ratio, Current

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

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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.


Price to FCFE Ratio, Historical

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

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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 price1, 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.