Time Warner Cable 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 attributable to TWC shareholders	1,844)	2,031)	1,954)	2,155)	1,665)
Net income attributable to noncontrolling interests	—)	—)	—)	4)	2)
Net noncash charges	4,238)	4,155)	3,679)	3,385)	3,898)
Changes in operating assets and liabilities, net of acquisitions and dispositions	457)	164)	120)	(19)	123)
Cash provided by operating activities	6,539)	6,350)	5,753)	5,525)	5,688)
Capital expenditures	(4,446)	(4,097)	(3,198)	(3,095)	(2,937)
Acquisition of intangible assets	(51)	(39)	(40)	(37)	(47)
Short-term borrowings (repayments), net	(507)	507)	—)	—)	—)
Proceeds from issuance of long-term debt	—)	—)	—)	2,258)	3,227)
Repayments of long-term debt	(500)	(1,750)	(1,500)	(2,100)	—)
Repayments of long-term debt assumed in acquisitions	—)	—)	(138)	(1,730)	(44)
Debt issuance costs	—)	—)	—)	(26)	(25)
Free cash flow to equity (FCFE)	1,035)	971)	877)	795)	5,862)

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 Time Warner Cable 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.	Time Warner Cable Inc. FCFE increased from 2013 to 2014 and from 2014 to 2015.

Time Warner Cable Inc., current P/FCFE calculation, comparison to benchmarks

No. shares of common stock outstanding	284,701,320
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	1,035)
FCFE per share	3.64
Current share price (P)	210.79
Valuation Ratio
P/FCFE	57.98
Benchmarks
P/FCFE, Competitors¹
Alphabet Inc.	32.65
Comcast Corp.	11.75
Meta Platforms Inc.	28.69
Netflix Inc.	50.58
Walt Disney Co.	58.82

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.

Time Warner Cable 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	283,270,372	280,900,337	277,451,193	295,513,813	314,086,417
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	1,035)	971)	877)	795)	5,862)
FCFE per share³	3.65	3.46	3.16	2.69	18.66
Share price^1, 4	184.99	149.74	144.98	86.94	77.66
Valuation Ratio
P/FCFE⁵	50.63	43.32	45.87	32.32	4.16
Benchmarks
P/FCFE, Competitors⁶
Alphabet Inc.	—	—	—	—	—
Comcast Corp.	—	—	—	—	—
Meta Platforms Inc.	—	—	—	—	—
Netflix Inc.	—	—	—	—	—
Walt Disney Co.	—	—	—	—	—

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
= 1,035,000,000 ÷ 283,270,372 = 3.65

⁴ Closing price as at the filing date of Time Warner Cable Inc. Annual Report.

⁵ 2015 Calculation
P/FCFE = Share price ÷ FCFE per share
= 184.99 ÷ 3.65 = 50.63

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.	Time Warner Cable Inc. P/FCFE ratio decreased from 2013 to 2014 but then increased from 2014 to 2015 exceeding 2013 level.

Time Warner Cable Inc. (NYSE:TWC)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical