National Oilwell Varco Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
Net income (loss) attributable to Company	(769)	2,502)	2,327)	2,491)	1,994)
Net (income) loss attributable to noncontrolling interests	2)	5)	1)	(8)	(9)
Net noncash charges	2,565)	812)	581)	673)	322)
Change in operating assets and liabilities, net of acquisitions	(466)	(794)	488)	(2,536)	(164)
Net cash provided by operating activities	1,332)	2,525)	3,397)	620)	2,143)
Purchases of property, plant and equipment	(453)	(699)	(669)	(583)	(483)
Borrowings against lines of credit and other debt	11,377)	173)	2,609)	5,575)	—)
Payments against lines of credit and other debt	(10,615)	(155)	(2,610)	(2,938)	(391)
Free cash flow to equity (FCFE)	1,641)	1,844)	2,727)	2,674)	1,269)

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

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Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to National Oilwell Varco 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.	National Oilwell Varco Inc. FCFE decreased from 2013 to 2014 and from 2014 to 2015.

National Oilwell Varco Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	377,631,319
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,641)
FCFE per share	4.35
Current share price (P)	32.66
Valuation Ratio
P/FCFE	7.52
Benchmarks
P/FCFE, Competitors¹
Schlumberger Ltd.	17.79

Based on: 10-K (reporting date: 2015-12-31).

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.

National Oilwell Varco Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013	Dec 31, 2012	Dec 31, 2011
No. shares of common stock outstanding¹	375,800,956	409,935,076	428,526,178	426,639,780	424,224,491
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,641)	1,844)	2,727)	2,674)	1,269)
FCFE per share³	4.37	4.50	6.36	6.27	2.99
Share price^1, 4	29.30	55.13	76.42	68.10	86.23
Valuation Ratio
P/FCFE⁵	6.71	12.26	12.01	10.87	28.83
Benchmarks
P/FCFE, Competitors⁶
Schlumberger Ltd.	—	—	—	—	—

Based on: 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2015 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 1,641,000,000 ÷ 375,800,956 = 4.37

⁴ Closing price as at the filing date of National Oilwell Varco Inc. Annual Report.

⁵ 2015 Calculation
P/FCFE = Share price ÷ FCFE per share
= 29.30 ÷ 4.37 = 6.71

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.	National Oilwell Varco Inc. P/FCFE ratio increased from 2013 to 2014 but then decreased significantly from 2014 to 2015.

National Oilwell Varco Inc. (NYSE:NOV)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical