Time Warner Inc., FCFE calculation

US$ in millions

12 months ended:	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
Net income attributable to Time Warner Inc. shareholders	5,247)	3,926)	3,833)	3,827)	3,691)
Net loss attributable to noncontrolling interests	(3)	(1)	(1)	—)	—)
Net noncash charges	10,000)	10,739)	9,473)	9,235)	9,319)
Changes in operating assets and liabilities, net of acquisitions	(10,150)	(9,981)	(9,454)	(9,381)	(9,294)
Cash provided by operations	5,094)	4,683)	3,851)	3,681)	3,716)
Capital expenditures	(656)	(432)	(423)	(474)	(602)
Borrowings	4,270)	3,830)	3,768)	2,409)	1,028)
Debt repayments	(5,001)	(3,304)	(2,344)	(72)	(762)
Principal payments on capital leases	(39)	(14)	(11)	(11)	(9)
Free cash flow to equity (FCFE)	3,668)	4,763)	4,841)	5,533)	3,371)

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

Download chart

Item	Description	The company
FCFE	Free cash flow to equity is the cash flow available to Time Warner 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 Inc. FCFE decreased from 2015 to 2016 and from 2016 to 2017.

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

No. shares of common stock outstanding	782,319,431
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)	3,668)
FCFE per share	4.69
Current share price (P)	93.67
Valuation Ratio
P/FCFE	19.98
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: 2017-12-31).

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 Inc., historical P/FCFE calculation, comparison to benchmarks

	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015	Dec 31, 2014	Dec 31, 2013
No. shares of common stock outstanding¹	779,851,623	774,334,281	790,154,346	830,521,982	892,661,216
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)²	3,668)	4,763)	4,841)	5,533)	3,371)
FCFE per share³	4.70	6.15	6.13	6.66	3.78
Share price^1, 4	94.37	97.06	66.66	82.42	64.69
Valuation Ratio
P/FCFE⁵	20.06	15.78	10.88	12.37	17.13
Benchmarks
P/FCFE, Competitors⁶
Alphabet Inc.	—	—	—	—	—
Comcast Corp.	—	—	—	—	—
Meta Platforms Inc.	—	—	—	—	—
Netflix Inc.	—	—	—	—	—
Walt Disney Co.	—	—	—	—	—

Based on: 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31).

¹ Data adjusted for splits and stock dividends.

² See details »

³ 2017 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,668,000,000 ÷ 779,851,623 = 4.70

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

⁵ 2017 Calculation
P/FCFE = Share price ÷ FCFE per share
= 94.37 ÷ 4.70 = 20.06

⁶ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
P/FCFE	Price to free cash flow to equity is cash valuation indicator of stockholders’ equity.	Time Warner Inc. P/FCFE ratio increased from 2015 to 2016 and from 2016 to 2017.

Time Warner Inc. (NYSE:TWX)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical