Marriott International Inc., 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	1,273)	1,907)	1,372)	780)	859)
Net noncash charges	685)	526)	983)	979)	697)
Working capital changes	(273)	(76)	81)	(177)	(126)
Net cash provided by operating activities	1,685)	2,357)	2,436)	1,582)	1,430)
Capital expenditures	(653)	(556)	(240)	(199)	(305)
Contract acquisition costs	—)	—)	(189)	(80)	(121)
Commercial paper/Credit Facility, net	951)	(129)	25)	1,365)	(140)
Issuance of long-term debt	1,397)	1,646)	—)	1,482)	790)
Repayment of long-term debt	(835)	(397)	(310)	(326)	(325)
Free cash flow to equity (FCFE)	2,545)	2,921)	1,722)	3,824)	1,329)

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).

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

Marriott International Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	324,255,928
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	2,545)
FCFE per share	7.85
Current share price (P)	82.31
Valuation Ratio
P/FCFE	10.49
Benchmarks
P/FCFE, Competitors¹
Airbnb Inc.	22.17
Booking Holdings Inc.	19.91
Chipotle Mexican Grill Inc.	0.07
McDonald’s Corp.	20.47
Starbucks Corp.	28.87
P/FCFE, Sector
Consumer Services	30.00
P/FCFE, Industry
Consumer Discretionary	72.02

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.

Marriott International Inc., 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	324,214,545	339,668,839	357,437,289	383,561,428	253,481,935
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	2,545)	2,921)	1,722)	3,824)	1,329)
FCFE per share³	7.85	8.60	4.82	9.97	5.24
Share price^1, 4	119.64	124.45	141.29	87.99	64.94
Valuation Ratio
P/FCFE⁵	15.24	14.47	29.33	8.83	12.39
Benchmarks
P/FCFE, Competitors⁶
Airbnb Inc.	—	—	—	—	—
Booking Holdings Inc.	15.41	—	—	—	—
Chipotle Mexican Grill Inc.	59.04	—	—	—	—
McDonald’s Corp.	17.47	—	—	—	—
Starbucks Corp.	20.35	—	—	—	—
P/FCFE, Sector
Consumer Services	18.62	—	—	—	—
P/FCFE, Industry
Consumer Discretionary	28.99	—	—	—	—

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
= 2,545,000,000 ÷ 324,214,545 = 7.85

⁴ Closing price as at the filing date of Marriott International Inc. Annual Report.

⁵ 2019 Calculation
P/FCFE = Share price ÷ FCFE per share
= 119.64 ÷ 7.85 = 15.24

⁶ Click competitor name to see calculations.

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

Marriott International Inc. (NASDAQ:MAR)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical