Carrier Global Corp., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income attributable to common shareowners	3,534)	1,664)	1,982)
Non-controlling interest in subsidiaries’ earnings from operations	50)	37)	24)
Net noncash charges	(1,505)	219)	(400)
Changes in operating assets and liabilities	(336)	317)	86)
Net cash flows provided by operating activities	1,743)	2,237)	1,692)
Capital expenditures	(353)	(344)	(312)
Increase (decrease) in short-term borrowings, net	(140)	13)	(23)
Issuance of long-term debt	432)	140)	11,784)
Repayment of long-term debt	(1,275)	(704)	(1,911)
Free cash flow to equity (FCFE)	407)	1,342)	11,230)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Carrier Global Corp. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made.	Carrier Global Corp. FCFE decreased from 2020 to 2021 and from 2021 to 2022.

Carrier Global Corp., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	834,838,102
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	407)
FCFE per share	0.49
Current share price (P)	40.65
Valuation Ratio
P/FCFE	83.38
Benchmarks
P/FCFE, Competitors¹
Boeing Co.	—
Caterpillar Inc.	18.02
Eaton Corp. plc	41.37
GE Aerospace	296.42
Honeywell International Inc.	28.56
Lockheed Martin Corp.	16.17
RTX Corp.	9.32
P/FCFE, Sector
Capital Goods	34.19
P/FCFE, Industry
Industrials	30.59

Based on: 10-K (reporting date: 2022-12-31).

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.

Carrier Global Corp., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
No. shares of common stock outstanding¹	834,187,942	855,514,035	869,213,146
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	407)	1,342)	11,230)
FCFE per share³	0.49	1.57	12.92
Share price^1, 4	44.39	46.06	37.25
Valuation Ratio
P/FCFE⁵	90.98	29.36	2.88
Benchmarks
P/FCFE, Competitors⁶
Boeing Co.	120.43	—	6.78
Caterpillar Inc.	24.03	16.36	25.22
Eaton Corp. plc	28.68	24.43	25.59
GE Aerospace	44.45	—	—
Honeywell International Inc.	27.59	46.23	12.59
Lockheed Martin Corp.	11.63	14.65	15.57
RTX Corp.	26.71	35.07	—
P/FCFE, Sector
Capital Goods	25.94	—	74.91
P/FCFE, Industry
Industrials	23.85	—	49.40

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2022 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 407,000,000 ÷ 834,187,942 = 0.49

⁴ Closing price as at the filing date of Carrier Global Corp. Annual Report.

⁵ 2022 Calculation
P/FCFE = Share price ÷ FCFE per share
= 44.39 ÷ 0.49 = 90.98

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.	Carrier Global Corp. P/FCFE ratio increased from 2020 to 2021 and from 2021 to 2022.

Carrier Global Corp. (NYSE:CARR)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical